A stark reality for many youngsters is graduating with huge education loans on their shoulders and not finding suitable jobs. Sometimes, the jobs they find are low-paying, rendering it difficult to service their loans.
While shopping for an LED television, you find one for Rs 50,000. The store has a tie-up with a non-banking financial company (NBFC) that offers a one-year personal loan at 24 per cent, which can be approved on the spot.
Using your debit card is always preferable to a credit card, especially if you don’t know how to use the latter efficiently and are prone to rolling over unpaid debt. In which case, you pay interest rates of 30-plus per cent annually.
Equities may be a good long-term investment avenue. But they do not give much pleasure if you want to pledge them to raise money. While banks do extend loans against shares, they have several conditions for it.