Taking A Loan? Know The Basics First

Gen Z is being bitten by the YOLO (you only live once) bug big time. With spendings taking the front seat and savings getting ignored, resorting to loans is what many turn to when they find themselves short of funds. There’s nothing wrong with taking a loan if it’s for the right purpose. Personal, car and home loan are the most popular. Here’s what you need to keep in mind to make the most of a loan.Constructive vs non-constructive loans: Some loans are considered to be constructive, such as home loan because they help build up an asset (house) whose price has the potential to increase over time. However, a loan to buy a car, consumer goods etc. (car loan or personal loan) is used to buy goods or assets whose value depreciates over time. The bottom line is that constructive loans help you grow your wealth while non-constructive loans fund your consumption needs.Role of...