Not very long time back, in India, people preferred to save first and buy later the things they wanted. People lived simple and healthy life. But with the entry of multinational companies with a vast capital base, a significant change has been brought about in our perception too.
Now a person can buy a thing by availing a loan from numerous sources and repay it in installments.
It is not that our forefathers did not like to borrow, but they did only to meet urgent or compelling needs, such as the marriage of a girl, investment in the business, and the like. But today loans are available at the drop of a hat, and that too at very low rates of interest.
It has aroused the desires of the conventional people too to avail a loan to fulfill their dreams of having a posh house or a car, not to talk of numerous domestic facilities which have more or less become the feature of almost every house including those in the rural areas.
The banks issue credit cards with which even day-to-day expenditure can be met on loan. In fact, credit cards have become a prestigious possession.
The moot point is — Is it good or bad?
It is a matter of individual perception. But one thing is for sure; if the borrower is not at ease to repay the loan, he is for certain going to face the ire of the lenders.
So one should, in one’s own interest, take only as much loan as he can repay with one’s resources.
Where a person has to take another loan to pay for the earlier one, there is hardly anything that can prevent his bankruptcy in the days to come.