Personal Loans: Lifeline in Crisis, Burden Without Planning

• Personal loans can be an instant lifeline for sudden financial needs like business, medical, or unexpected expenses.
• It's crucial to carefully consider interest rates and terms before borrowing, as taking loans for small needs can lead to financial stress.
• Wise use involves having a clear purpose, comparing offers from lenders, and making timely EMI payments to improve your credit score.
• Risks include high interest rates, additional fees, long repayment periods, and potential credit score damage if EMIs are missed.
• Personal loans should only be taken for genuine needs, as using them for minor or everyday expenses can create long-term financial problems.

Why It Matters: It explains how to use personal loans wisely to avoid financial burden.