Questions to be asked before Borrowing

When you borrow money, then it implies that you do not have enough money to pay for that commodity or service. It happens at times that we need something very urgently, and we don't have ample amount of money to get it. It's a mean world and nothing is for free. If you borrow money then you have to pay interest on it. If you are forced to ask for a loan, then ask yourself a few questions.

• Do you really need to borrow?
• Do you really need that product or service urgently, or could it be postponed until you have the money yourself?
• If you need the product urgently, then is there any way you can do without borrowing money from others?
• Will you be able to repay the loan in given duration?
• If finally the loan cannot be avoided, then are you getting the best deal from your lender? (i.e the lowest interest rate, and maximum duration to repay the loan)
• What are the other options for lenders available to you?(Potential lenders could be:- Bank, friends, local lenders, etc.)

Taking a loan means that you have to pay interest on it, so eventually you end up paying more then the amount required to buy that commodity. So do borrow money, but only when it is essentially required.