BENGALURU: Money is a key mantra to maintain a smile on your face throughout your life. But when you fail to tackle your finances, happiness turns to disappointment. With rising inflation, it has been very difficult for anyone to maintain a balanced budget at least for a year.

Understanding the need of an hour, The Economic Times has made efforts to guide you before taking a loan. According to it, today’s young generation is increasingly getting addicted to borrowing. 

Although, you might be happy with your loan sanctioned at the initial stages which might help you with your necessities, but ultimately it is bound to dig your income in the form of heavy interests. There are different kinds of loan according to your need like home loan, study or educational loan and personal loan.

Loan is an inevitable circumstance in everyone’s life from common man to a multinational company. It is normally preferred in case of liquidity issues. Remember the great recession? The global financial crisis in 2008, which was a result of humungous loans borrowed by different companies or people, is a worst case scenario.

Banks seems like extending a helpful hand to its customers by lending money when necessary but the fact is that the interest rates they charge might hit you hard. Unless you really need loan you must not approach the bank. Why not start saving emergency fund which would help you in your financial crisis?

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