Need immediate money for a function or medical emergency? But who should you approach? That rich uncle? Or your friend who borrowed money from you last month? Or a Bank?
A bank sounds like a reliable option, but the stereotype is that it will take days or weeks. Or maybe you’ll have some big interest in your head.
So looking at the interest rates and transaction time, one avoids the bank and its formalities. People generally hunt for their relatives and friends and then subconsciously start getting awkward in front of them. At a certain level, lowering down your self-esteem is a problem for a few. Still in doubt, what to choose and what to not? Wait.
Here are 10 big reasons why one should choose personal loans over some relatives or friends.
TRANSACTION DETAILS ARE CLEAR
When we borrow some money from our friends or relatives, there is no signing of documents or discussion on transaction details. Due to this, few things remain unanswered, including the personal loan interest rates, repayment tenure, and what if you cannot repay the borrowed amount. On a certain level, this problem gives rise to disputes and conflicts if there is some confusion.
On the other hand, everything is written in Banks, and there’s no room for confusion. No verbal contracts like the previous one but everything on paper. Services like customer care service are your all doubt solution.
NO RUSH TO PREPAY
When you borrow money from your friends or relatives, there is no fixed date. And on the other hand, you may keep on delaying the repayment if you have sufficient funds. But when you take a personal loan, you’re mentally prepared to repay it on a certain date at an already decided EMI and with a fixed rate. You’re not pressured to repay the loan and can continue to pay at a consistent pace throughout the loan tenure.
NO IMPACT ON RELATIONSHIPS
The time you borrow money from your family or friends, it comes with a few more things, like it puts a kind of a strain on you. And most probably, you become a bit uncomfortable with them. Most probably, your relationship changes with them a bit. On the other hand, there’s a lender, who’s job is to lend money to the borrowers, no shame, nothing uncomfortable. Except for the EMIs’ repayment on time, you have no other responsibility towards them.
NEED MORE? Okay.
What if something comes up again? While you have already borrowed from a friend, you’ll think at least 10 times before asking him again. While with the bank, you don’t have to worry about it; you have the flexibility to ask the lender again. Simple.
IT SAVES YOU FROM AWKWARDNESS
One of the most important points, asking for money from friends or relatives, is really very awkward for almost everyone. Once you take the loan from them, you’re under serious awkwardness. What if they refuse? Then things get really awkward. On the other hand, you can face a bank with confidence and without any hesitation.
RETENTION OF SELF-ESTEEM
When you go for a Personal loan, there is a fixed rate of interest and specific loan tenure. There’s no shame in taking a personal loan, as it is just a financial transaction to take care of your immediate financing needs. Asking money from a friend or relative isn’t the same, and there’s always discomfort and a for sure drop in self-esteem.
INFLUENCES LENDING DECISIONS
It’s obvious that family or friends certainly want to know where you’ll be using that borrowed money before they lend it to you. This can influence their decision to lend you money as you might want to use it for a different purpose, like buying a new air conditioner.
LEGALLY BOND AGREEMENT
Everything is fixed. A personal loan gives you the liability to calculate your expenses and how you will manage all that. It is a legally bound agreement between you and the lender, and no one can backtrack on the bond.
Imagine you took a loan from your friend; what if he tells you that you have to pay it early or pay more than it was set? You’ll be in big trouble as you don’t have any proof of your case. Legally, you’re good to go with personal loans in terms of legal paperwork, as you’ll be having things to prove your case.
REPAYMENT IS EASIER IN EMIs
Repaying a personal loan is way too easy than borrowing money from a friend. Like you can pay in easy EMIs to a bank but not to your friend. They cannot have this level of patience for something, and it is a daily task for a bank
Say it or not, there’s always a place where you remain obliged to the lender when you borrow from family or friends. And it could interfere with your personal choice and freedom. Why go through a certain option when you have a clear route without any hesitation.
At last, the choice is only yours, as we just saw how personal loans are way more beneficial than borrowing from your friend or family. To get more details about your specific problem, you can contact any Bank in your locality and consult with them.