Key Points
So, the trajectory is already peaking for the current month as far as the personal loans or short-term loans are concerned in the industry..
Credit loans, especially personal loans are on the rise and this being the festival season, I am sure people are gearing up with their shopping list and going out and making big ticket purchases..
The third category which comes classically is also converting large purchases on your credit card into instalments or EMIs and that is a smaller ticket personal loan classification..
Those loan amounts are small and those loans amount are very costly whether you are turning a credit card purchase into an EMI that is also costly or whether you are trying to withdraw cash on the credit card which is very costly or whether you are taking an instant personal loan that is also costly, the reason being is that it is done on a light data sets and the default rates are higher in those segments and that is how it has been priced in in that fashion...
Now the reason why we are putting trust on repayment strategy and to plan these kinds of loans is because if at all you miss or are unable to repay it back this might impact your credit score which will create further problems for you when you go for a loan of a longer tenure..
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