Need cash now? Avoid taking a personal loan for discretionary purchases

Use them only for emergencies or to repay higher interest loans

• A personal loan can be useful during emergencies or to pay off loans with higher interest rates

• Lenders approve it quickly, don't ask for collateral, or about the end-use of funds

• Avoid taking a personal loan for discretionary spends, such as to buy a gadget or consumer durable, or to fund a vacation

• Avoid personal loans that ask for advance EMIs or higher processing fees. These will increase your outgo to the lender

• Many borrowers tend to borrow more than they need, especially in case of pre-approved loans. Stick to the amount you need

• Before taking a personal loan, check for options like top-up home loan, or overdraft facility on FD