I would recommend that if you have a fairly decent job and steady income, live within your means. Loans are a sure shot way of overspending. The lure of more is the stepping stone for debt. I still remember how life used to be just watching Chitrahaar on an old B&W TV.
Today companies are bringing in TV’s straight out of Star Trek with zillions of gizmos. I walked into a Showroom the other day and saw this frightfully disgusting looking system priced in excess of Rs. 30000, boasting of 6000W PMPO. Does that make sense in your house. It’s fit for a stadium. But my point is that I could have picked it up with a down-payment of Rs. 5000 on my credit card and the rest on installments for a period of 2 years. What sense does that make. First I don’t need it, secondly I’m going to be paying interest on it in excess of 18%. Don’t be fooled by the zero and single digit finance schemes. It’s so easy to foll people with all these numbers juggled around. Why would someone give you a loan at an interest rate that is lower than the borrowing rate. I would suggest that before you go into any kind of loan, get your facts straight about terms like flat/reducing balance rates tenure, Advance/Arrears Schemes.
My best bet is that you don’t get caught in this debt trap. Again there are so many criteria for loans. I remember going for a loan to start a business. Well I had to put down assets and collateral worth the loan amount. Well if I had that kind of Money I wouldn’t be asking for a loan, was my first thought. I know the bank has to safeguard it’s own interests, but then what it boils down to is that they only lend to people who already have money, which to me makes no logical sense. It’s like ’’don’t spend your own money, spend ours and pay us a fee for doing so’’. Oh I could go on about this forever, but I guess I’ve made my point.