Easy loans can make life tough5 min read . Updated: 04 Jun 2019, 10:02 PM IST
- Borrowing has become easier now, but remember that instant loans can push you towards a debt trap
- Don’t let messages from fintechs advertising attractive interest rates sway you into taking loans
It took about seven years for Anil Agrawal, 35, a Pune-based sales manager, to clear off four different loans he had accumulated over a period of five years. He is still paying the EMIs for a fifth loan. It all started with a personal loan of about ₹4 lakh that he took from a private bank to meet his wedding expenses in 2012. “When I took the loan, I was a salaried professional. But soon I started my own business which didn’t do well, so I went back to a job in 2014," said Agrawal. By this time, he had a huge credit card bill to repay. “Since banks weren’t approving my loans, I took one from a fintech company in 2017 to repay my credit card bill of ₹4.5 lakh. This was among five other loans I had taken, including a car loan of ₹7.5 lakh," said Agrawal. All five loans put together amounted to more than ₹15 lakh.