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    Maneet Anand

    A personal loan is an unsecured loan which can be used for any purpose. Hence, it can find many uses as it's extra cash in hand for indulgence.

    However, getting yourself a loan without any need is like eating food even when you are not hungry, clearly an unhealthy choice.

    Hence, it's easy to fall in a debt trap with a non-required personal loan, as a personal loan is the most easily available loan for cash infusion, without much documentation.

    How can you avoid personal loan trap?

    Don't just blindly accept what one bank is offering you. If you genuinely believe you could use a personal loan, then compare interest rates and terms and conditions of a few other banks as well. As, it'll give you a clearer picture of what market rates are, considering your credit worthiness, helping you get the best possible deal.

    Or, go for a secured personal loan. the interest rate of a secured personal loan is much less than an unsecured personal loan. Hence, it'll be more affordable and less of a burden on you.

    The fact that you are being offered a personal loan means you must have a decent credit history, so be careful in maintaining and preserving your creditworthiness, as one bad loan decision can ruin it, leaving you helpless when a genuine need arises.

    Hence, take all the pros and cons into consideration before accepting the personal loan. Personal loans are as it is expensive, and since this bank is offering it to you upfront without even applying, there may be something fishy about it, as it could be at a much higher rate of interest than it should be.

    Hope this helps!

    For any future loan assistance in India or US, you may contact Stilt Inc for further queries.

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