Todays’ India and Loan burden

There used to be a time when our forefathers used to tell their sons and daughters that never take “Udhar” i.e loan of any kind. Once you start taking loans then you are stucked in the vicious circle of loans.

The new India which is full of banks, Nbfc’s and various fintech companies , providing loans in just few mintutes. Gone are the days when people used take loan for purchase of property or for expansion of starting business. With entrance of companies like “home credit” and “Bajaj Finserv”, now loans are available for even consumer products like mobile phone, Washing machine, airconditioners etc.

Some type of loans have become necessity. I am talking about home loan. No one in this era want to pay rent on the house rather want to own the house. Even business men instead of taking credit from friends and relatives prefer going in official way by taking loan from banks, nbfc’s or fintech companies.

With the increase in average package of employees , they now a days prefer to have all luxuries and less of savings.

A middle class of India is stucked with paying atleast two emi’s like home loan , vehicle loan, personal loan , consumer loan etc.

Nowadays each one of us want to live with luxuries like car, Big Home, branded mobiles etc that can create that “Status symbol”.

Here comes financial planning in picture. We need to understand instead of going for loans for each and every thing, we can plan the things well in advance like family planning. Sip’s , Mutual funds, Fixed deposits , recurring deposits are some options that can be thought for loan burden. Ofcourse for buying a home or starting a new venture you necesarily require loan. But financial planning can help you in purchasing consumer products, securing child’s future, Daughter’s marriage etc

Rather than being in due its better to invest. Each one shall invest in RD’s , FD’s , SIP’s Gold etc through which we can reduce loans. Loans are always added with interst and burden of emi. So avoid loans and prefer financial planning.