I Don’t Want to Ask My Family for Money – Should I Take a Loan Instead?
Let's face it, nobody likes the vulnerability of having to borrow money, even if it's from friends and family. Some may even find it a smidge embarrassing.
But if you can't have that vulnerability with your loved ones, how can you overcome a financial problem?
As tough as it sounds, we've all been there.
On the one hand, there are financial obligations that demand our attention. And on the other hand, there's the fear of straining relationships or adding emotional baggage to financial matters.
Luckily, personal loans are a practical option. You get access to funds while keeping your personal and financial boundaries intact!
Questions to Ask Yourself Before Borrowing
The decision to borrow money, formally or informally, is not an easy one to make. While doing so, consider the following questions:
● Is this expense unavoidable? Could you delay it, cut other costs, or use savings instead?
● How much do I actually need? A clear figure prevents over-borrowing.
● Is it a short-term need? Or long-term commitment? Consider your ability to repay the loan while deciding on the tenure.
● Will this affect my personal relationships? Borrowing from loved ones can sometimes strain bonds.
Want a loan but are unsure if you are eligible? Use Hero FinCorp's personal loan eligibility calculator to get clarity and start your personal loan journey today!
Is a Personal Loan Better Than Borrowing From Family?
The idea of getting a personal loan instead of borrowing from friends and family sounds better when you consider the following points:
Clear Terms and Conditions
Borrowing from friends or family can be ambiguous. You may be so focused on the amount itself that discussing other terms may go amiss.
With a personal loan, you start with complete clarity. You’ll have absolute transparency on the interest rate, loan tenure, and EMI amount, as these are locked in from day one. Your loan agreement will document every little detail, leaving no room for misunderstandings or disputes later.
Keeps Relationships Cordial
Money matters can strain even the closest bonds. Family gatherings may feel awkward or unnecessarily tense.
With a personal loan, you avoid awkward repayment conversations or emotional pressure from friends and family. This separation ensures your relationships remain warm and stress-free.
No Unspoken Obligations
Borrowing from loved ones can sometimes carry invisible strings. You’ll be burdened with expectations of help with future events, family favours, or unwarranted guilt-tripping. Even when you’ve repaid the loan, you may still feel indebted. A loan keeps things professional. You only owe the agreed amount to your lender.
Freedom to Use Funds as You Wish
Relatives may question or criticise how you spend borrowed money. Bought a new phone? Cue taunts about how you should’ve repaid the loan first. A personal loan gives you complete autonomy, whether it’s for a wedding, medical emergency, a business upgrade, or an overseas trip; no one asks “why.”
Structured Repayment Schedule
Personal loans follow a fixed EMI plan with clear due dates. This predictability helps you budget efficiently and ensures your payments are consistent, avoiding the uncertainty of “pay back when you can” arrangements. This can be a valuable lesson in developing financial prudence.
You Can Borrow as per Eligibility
Friends or family may lend only what they can spare, which might not match your actual needs. In some cases, they may promise a larger sum and lend a smaller one, which can disrupt your plans.
Lenders assess your income, liabilities, and credit profile to determine your eligible amount. Check instantly online through our Instant personal loan Web Journey.
Instant Funds Availability
Your family or friends may not have funds lying around to offer you instantly. You may have to wait until they have the funds at hand to help you.
On the other hand, many banks and NBFCs have the necessary funds ready for instant disbursal. For example, Hero Fincorp can process and disburse personal loans in under 10 minutes!
To Borrow or Not To Borrow - Break the Cycle with Hero FinCorp
Ask yourself, do you want to ask your family for financial assistance? Or would you prefer taking a personal loan? The decision depends on your needs, comfort level, and long-term financial goals.
If you decide a loan is right for you, use an online eligibility calculator to explore your options.
Need funds fast without worrying your family? Apply for Hero FinCorp’s personal loan and get disbursal (without awkward conversations)!
Frequently Asked Questions
Is taking a personal loan better than borrowing from family?
With personal loans, you get financial independence, privacy, and structured repayment terms. When you borrow from family, you may land an interest-free loan. However, be wary of emotional strain and awkwardness. Weigh both your options and make your decision.
What interest rate can I expect on a personal loan?
Personal loan interest rates vary depending on the lender, your credit profile, and the loan amount.
Does a personal loan affect my credit score?
Yes. And you can tip the scales in your favour if you repay on time. Regular and timely payments improve your credit history. In contrast, missed or late payments will harm your score.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented Here is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.
