As financial needs, aspirations and goals evolve in the country, consumers are increasingly looking out for several unique borrowing opportunities.
Two unique choices in this regard are personal loans and payday loans, each catering to different financial scenarios. That is why understanding the difference between the two is important for making sensible decisions.
What makes personal and payday loans unique?
There are several aspects that make personal loans and payday loans unique:
Note: The differences discussed above are illustrative in nature. For the accurate differences refer to the official website of your respective lending institution and discuss with a certified financial advisor.
Important takeaways
- Personal loans are better products for planned, larger financial goals.
- Payday loans may be easily available but come with higher costs and risks.
- Credit score and repayment history play a major role in loan eligibility.
- Repayment terms, interest rates and conditions are easier with personal loans.
- It is prudent to discuss with a financial advisor before availing any loan.
Hence, opting between a personal loan or a payday loan comes down to the primary purpose, urgency and repayment capacity of the borrower. That is why it is always prudent to take sensible decisions when faced with such scenarios.
As the aim should always be to avoid falling into a debt trap and staying financially healthy. More than anything proper financial literacy and awareness can go a long way to help aspirational borrowers navigate these complexities and avail the most suitable and beneficial loans for their needs.
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