Life can get tricky, and the chances of that are more so in tough times. COVID-19 has disrupted many lives since its origination. And people have tried several options to meet ends.
People worldwide faced financial troubles because of losing their jobs and making losses in their businesses amid COVID-19. After a while, people even depleted their emergency funds, and many turned to personal loan apps to help them out of the financial emergency.
What borrowing money from friends and family is like
There are avenues other than taking a personal loan like taking financial help from your relatives and close friends. As we know, family and friends are the ones willing to help us out of any problematic situation.
However, we also know that borrowing money from family or friends can impact our relationship with them due to the potential misunderstandings arising from the transaction.
It is advisable to avail a personal loan for salaried or self-employed professionals from one of the many unique loan apps in the market in your times of trouble.
5 reasons why you must avoid loaning money from friends and family
Let us go a little deeper and understand why you should not be borrowing money from family and friends:
1. There is a lack of guiding light in financial transactions done with friends and family
When you borrow a certain amount of money from your friend, you hardly discuss anything financial. It’s just one friend helping the other in need. So, in most cases, the details of the financial transactions are not discussed.
Many essential things remain unanswered, like if there will be any interest charged, the duration of repayment, etc. If at all, you’d probably give your friend an ambiguous timeline that she would accept without giving a thought. The vagueness of such a transaction is the breeding ground of potential confusions and disputes in the future with your friend.
2. You may damage your relationship with your lender friend
There is a risk of distancing your friends from yourself when you borrow money from them. There are chances the situation gets complicated or uncomfortable for both you and your friend.
Again, it is possible that your friend’s family members do not have a high opinion of you taking a loan. An uncomfortable situation may arise, such as your friend asking for the money back before you pay her.
3. You may not be able to repay your lender friend when she needs the money herself
Tables can turn at any time. And there can be a time when your friend is in need of money. And she thinks of you first. But you may be out of funds then and couldn’t return the help expected from you.
Your friend who has lent you money may require the cash urgently. Being not able to repay them at such a time could cause you a lot of stress.
4. There is a chance you get under stress and your morale dips
Borrowing money from your friend can give a blow to your morale. It can hit your self-confidence as you may feel like you owe your friend money and worry about your self-image until you repay the amount.
5. It can get awkward borrowing from someone you know
COVID-19 or no, borrowing money from a friend is awkward. Any loan taken from friends or relatives can turn out to be uncomfortable. You may be socializing with a group with the same friend, or she is your colleague, and you have to face her every day at work. Such instances can make you feel awkward.
In many cases, such encounters cause you to feel extra sensitive towards her and her comments. You may perceive an otherwise harmless remark as a sign of passive aggression.
The best substitute to borrowing money from friends and family—personal loan for salaried
Based on the reasoning above, it is better to avoid loaning from friends and quietly go for a simple personal loan from a personal loan app. The application and approval process is easy, and you get money in your account in no time with instant personal loans.
You pay back via easy EMIs to your lender, and you do not even have to put anything as collateral. Taking a loan using a personal loan app will let you keep your valuable peace of mind. You would be in charge of your finances, and you would not have to depend on others.
Taking a loan from a personal loan app trumps taking a loan from a friend or relative. Moreover, you get benefits like quick approval, zero or minimal documentation, an online application, and an easy repayment facility when you avail yourself of a personal loan for salaried professionals.
You can get a personal loan of ₹5,000 to ₹5,00,000 at an interest rate ranging from 16% to 36% for a tenure of 3 to 60 months from PaySense.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs