A personal loan is called an emergency loan because in difficult times when you need money very much, you can easily get this loan. It does not require much paperwork and it does not take much time for the money to be credited to the account. This loan is given based on your CIBIL score, income, etc. There is no need for any kind of guarantee in this. You can use the amount of a personal loan anywhere. But a personal loan should never be taken for some work or else you can get into big trouble. Know about it here-

To repay the loan
If you have borrowed money from somewhere, do not make the mistake of repaying it by taking a personal loan. This will free you from one place, but you will get entangled in the personal loan and will keep paying EMIs for many years. If you are unable to repay this loan, you will have more problems for yourself. In such a situation, you will not see any other option except regret.

For investing in the stock market
If you do trading, then never make the mistake of taking a personal loan in the pursuit of making big profits. This step taken in overconfidence can create a big problem for you. There is already a lot of risk in the stock market, so by taking a personal loan you make another big mistake. If you do not make a profit in the stock market or your money gets stuck and the EMI of the personal loan starts with high interest, then a big problem can arise for you.

To fulfill hobbies
All your hobbies are considered part of unnecessary expenses. For example, suppose you want to buy a diamond necklace or ring for your hobby or want to buy an expensive mobile, do not resort to a personal loan to fulfill these hobbies. Fulfill your hobbies by keeping in mind the household budget. If you take a personal loan to fulfill these hobbies in the pursuit of status, then you will create problems for yourself.

Features of Personal Loan
You can apply for a personal loan anytime and from anywhere. This is a collateral-free loan. You do not need to mortgage any property etc. in exchange for it. Most loans like home loans, car loans, two-wheeler loans, etc. have restrictions on the use of the loan, but there is no such restriction with personal loans. You can use it anywhere according to your wish and need. You are given a good amount of time to repay the personal loan. There is a flexible repayment period attached to it which usually ranges between 12 months to 60 months. In such a situation, you can choose it according to your convenience.

When should you take a personal loan?
If you need money very badly or there is a medical emergency and money is not being arranged from anywhere, then you can choose the option of a personal loan. But even in such a situation, you should do all the calculations once whether you will be able to repay the EMI on time after taking the loan. Only after all this, apply for a personal loan. If you are unable to repay it, then your CIBIL score will be bad and in the future the doors of loan may be closed for you.