A personal loan is an easily available loan. You do not need much formality for this. If your salary is good and your credit score is good then the bank easily approves your loan. The good thing is that for a personal loan, you do not have to mortgage anything with the bank. Therefore, this loan is kept in the category of unsecured loan.

You can use the amount of personal loan anywhere according to your convenience. If you fulfill the conditions of a personal loan, then you can apply for it anytime and from anywhere and it will be approved very easily and in a short time, the loan amount will be credited to your account. But do not consider this easily available loan as 'personal' and use it for such work, which will increase your problems. Here know about 3 such works, for which taking a personal loan should be completely avoided, otherwise you can also get entangled in the debt trap.

To repay the loan

When many people borrow money from someone and are unable to repay the loan, they take a personal loan to repay the loan. But if you are taking a loan again to repay a loan, then this is not a wise decision at all. Apart from this, a personal loan is an expensive loan. In such a situation, you will have to pay a good installment every month. If you do not repay the personal loan, then you will get entangled in other loans rapidly. Also, your credit score will be bad. In such a situation, you will have a lot of trouble in taking a loan in the future.

To buy shares

Personal loans should never be used to buy shares. You do not know whether the price of the share will increase or decrease. It all depends on the market conditions. If you take a personal loan and invest money in shares and the share also goes into loss, then you will be hit twice. You will also incur a loss from the share and the debt of the personal loan will also increase.

To fulfill expensive hobbies

The interest rates of personal loans are very high, so you should take a personal loan only when you need it and are unable to arrange money from anywhere. Never take a personal loan to fulfill your expensive hobbies like buying expensive mobiles or traveling abroad. This will be a very expensive and loss-making deal for you.