Why you should go for a Personal Loan? Instead of borrowing from your family/friends.
Need immediate money for a function or medical emergency? But who should you approach? That rich uncle? Or your friend who borrowed money from you last month?
Or a Bank?
A bank sounds like a reliable option but the stereotype is that it will take days or weeks. Or maybe you’ll have some big interest in your head.
So looking at the interest rates and transaction time, one avoids the bank and its formalities. People generally hunt for their relatives and friends and then subconsciously start getting awkward in front of them. At a certain level, lowering your self-esteem is a problem for a few. Still in doubt, what to choose and what to not? Wait.
Here are 5 big reasons why one should choose personal loans over some relatives or friends.
- TRANSACTION DETAILS ARE CLEAR
When we borrow some money from our friends or relatives, there is no signing of documents or any discussion on transaction details. Due to this, a few things remain unanswered, including the interest rate, repayment tenure, and what if you’re not able to repay the borrowed amount. This problem on a certain level gives rise to disputes and conflicts if there is some confusion.
On the other hand, in Banks, everything is written and there’s no room left for confusion. No verbal contracts like the previous one but everything on paper. Services like customer care service are your all doubt solution.
- NO RUSH TO PREPAY
When you borrow money from your friends or relatives, there is no fixed date. And on one hand, you may keep on delaying the repayment you have sufficient funds. But when you take a personal loan, you’re mentally prepared to repay it on a certain date at an already decided EMI and with a fixed rate. You’re not pressurized to prepay the loan and can continue to pay at a consistent pace throughout the loan tenure.
- NO IMPACT ON RELATIONSHIPS
The time you borrow money from your family or friends, it comes with a few more things, like it puts a kind of a strain on you. And most probably you become a bit uncomfortable with them. Most probably your relationship changes with them a bit. On the other hand, there’s a lender, whose job is to lend money to the borrowers, no shame, nothing uncomfortable. Except for the EMIs’ repayment on time, you have no other responsibility towards them.
- INFLUENCES LENDING DECISIONS
It’s obvious that family or friends certainly want to know where you’ll be using that borrowed money before they lend it to you. This can influence their decision to lend you money as you might want to use it for a different purpose like buying a new air conditioner.
- LEGALLY BOND AGREEMENT
Everything is fixed. A personal loan gives you the liability to calculate your expenses and how are you going to manage all that. It is a legally bound agreement between you and the lender, no one can backtrack on the bond.
Imagine you took a loan from your friend, what if he tells you that you have to pay it early or pay more than it was set, you’ll be in big trouble as you don’t have any proof of your case. Legally, you’re good to go with personal loans in terms of legal paperwork, as you’ll be having things to prove your case.
At last, the choice is only yours, as we just saw how personal loans are way more beneficial than rather borrowing from your friend or family. To get more details about your specific problem, you can contact any Bank in your locality and consult with them
Also, if you face any doubts regarding your subjects, Physics, Chemistry or Mathematics. Your Doubt partner is here, DOUBTCONNECT, a doubt-solving platform for all your doubts.
