The most advantageous factor of a personal loan is that it is very easily available. This is because the lender of a personal loan does not have many compliances to follow. The lender asks no questions and there is no criteria that has to be met by the borrower. However, there is a downside. This is very much unlike the loans taken for education and housing. The downside is that personal loans come with a very high rate of interest. Thus most of the financial experts advise against taking of these loans.

When to go for a personal loan?

There are a few circumstances in which you can easily go for this kind of loan. However these circumstances can also be termed as rare. These are as follows.

- You should not take a loan to purchase any expense that is consumption based. This includes buying a TV or a car. You should also not even think of funding a holiday by taking a personal loan.

- You can opt for this type of loan only during cases of emergency. You must however do this only if you are sure that you will be able to pay back the loan in time.