What is Good loan or Bad Loan ?
Good Loans:
These are kinds of loans used to purchase assets whose value gets appreciated in the future and also generates income. For example, if you are taking a home loan to purchase a house property that has the potential to generate the rental income and also its value get appreciated later. However, these good loans may turn bad sometimes depending on the situation. During the pandemic, rental incomes were irregular, and paying the EMIs became difficult for the house owners.
Examples: Home Loan, Education Loan, Business Loan.
Bad Loans:
These are the kind of loans used to purchase the assets whose value gets depreciated in future and also least possibility to generate the income. One of the best examples is Car loan. Unless having a car is a requirement, you should not purchase it by taking a loan to impress the society.
Example: Credit card loan, Electronics & White Goods on EMIs, Car Loan, Personal Loan for Holiday.
The Debt Trap for Businessman
1. Businessmen take high-interest loans to invest and earn from the business.
2. Many times things don’t go as per plan.
3. Businessmen struggle to pay back their loans.
The Debt Trap for Salaried
1. Salaried take loans to purchase houses/cars/durables/electronics
2. Lose the job or some medical emergency in the family
3. Salaried struggle to pay back the loans due to over commitments
Loans are always a debt liability, it can't be good or bad, you are the person who decides bad or good based on your benefits, what your mind decides is final, but my opinion is don't fall in the debt trap ..
For example.. 0% interest on your loan or an interest-free loan, festive offers on a personal loan, mainly don't go for a fancy loan.
If you are in debt tramp or want to pay off your loan, we have a unique strategy, feel free to call us.
posted by Raja Bhattacharjee @ November 22, 2022
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