Conventional wisdom has always said to be cautious of taking a credit. Our parents might still be very skeptical of loans and may advice against it because of experiences with irresponsible money lenders and loan sharks.

While it’s always good to understand the responsibilities associated with taking a loan, it’s also a good thing to consider loans in many cases. Here’s a few situations in which it would probably be a good idea to consider taking a loan:

Cash crunch

Having a healthy balance of cash in hand is always a good thing for contingencies, unplanned expenses or even regular budgeting for your household. Taking a loan for an additional purchase will offer you the chance to keep your available cash balance in hand, and yet take your selected product home the same day!

Purchases that can’t wait

Some purchases cannot wait. After all, having that new LCD TV in time for the cricket World Cup or buying a new kitchen appliance in time for making Diwali sweets is most important! For times like these, buying your TV, fridge, AC or mobile phone on the day that you most need it, taking a loan is a good idea. You can not only pay a nominal down payment and processing fee, and get to take your purchase home the same day! Though do remember to repay your EMIs on time each month!


A thumb rule for taking a loan is to check your affordability for it. If at the end of calculating all your expenses from your earnings and keeping aside at least 10% saving for a rainy day, you have some remainder, then you can think of taking a loan with an EMI of the amount.

Grow credit score

Have a lagging or a negative credit score? Never taken a loan and don’t have a credit card? It may be a good idea to make a purchase with an affordable loan in order to start and grow your score. A good credit score not only helps with getting larger loans in the future, but is also looked at by many employers while recruiting today. It’s always a good idea to know your credit score and grow a strong one.

Responsible lender

Last but not the least, it’s a good idea to take a loan only with a responsible lender. A licensed recognized lender who keeps the customer’s best interest in mind and practices responsible lending in its true sense, is a good idea to take a loan from. A good lender will always explain your loan terms to you clearly, ensure you have no doubts in the loan amount, interest percentage, monthly EMI payment, due date etc. A responsible lender will be your partner throughout your loan process and will help you grow your credit score through the tenure of your loan by ensuring you pay on time, every time.