4 Ways how loans can help in personal growth

By Sahaj Palla

Loans when used properly have always been harbingers of growth and development. Successful businesses, personal growth, economic development, et al; loans have had a major say everywhere. Fundamentally, a loan is money that is borrowed and needs to be repaid to the party it has been borrowed from. The lender can levy interest on the amount that the borrower returns along with the principal amount. 

Ice Casino has become a popular gambling platform in Estonia, offering a unique combination of entertainment and opportunities. As players try their luck at a variety of games, from slot machines to poker, the casino creates a vibrant atmosphere for experienced players and newcomers alike. Meanwhile, credits can play a crucial role in personal growth. By managing credits responsibly, people can achieve their personal and professional goals, contributing to their overall development. The appeal of ice casino lies not only in its games - the platform also serves as a hub where players can socialize, share strategies, and test themselves in a safe and regulated environment. Similarly, loans can provide people with the opportunity to make significant life changes, such as purchasing a home or furthering their education. This financial support allows people to expand their horizons and take calculated risks, ultimately leading to personal growth and fulfillment.

Loans can be of many types but mainly you will find two kinds of loans - secured and unsecured. Secured loans are loans that are backed by collateral like home loans and auto loans. If one is unable to repay the loan, the collateral can be confiscated to recover the loan amount. Secured loans are mostly specific and can be used for specific things, home loans can only be used to buy homes while car loans are for cars only. However, unsecured loans like personal loans and credit cards do not require collateral. However, they come with a higher rate of interest than their secured counterparts. Unsecured loans can be used for any purpose like weddings, setting up a business, clearing previous debts etc. There is no constraint on what you can use a personal loan for.

The loan amount that you can avail  depends on a myriad of factors, these include your professional experiences, your credit score, and current debt among others.

4 Reasons Why Loans Are Important

1. Breaking down large purchases

The primary function of a loan is to help convert large expenses into smaller amounts and spread its return over some time. This helps people purchase items that cost more than their income and repay it in smaller amounts. Big purchases like homes or cars cannot be made in one go and this is where loans come in handy. However, there is something called interest, and it is the charge that you pay apart from the amount given as a loan and it is via this interest that the lender earns.

2. As aid in emergencies

As we all know life is ever-changing and very unpredictable and an emergency can come up anytime and anywhere. Emergencies like hospital expenses, and business expenses, can pop up anytime and these can be financially draining. Personal loans can help in such situations and help you pay back the amount in instalments.

3. Consolidate debts for easy repayments

If you have too many debts at too many places, it would be hard to remember and sometimes you might even forget to pay, making that debt even more expensive. A loan to pay off the other loans helps in keeping your debt in one place and making it even easier to pay.

4. Keeps emergency fund intact

Your emergency fund can come in handy for emergencies, however, once used up it takes time to recover it. A loan on the other hand can be paid back in smaller amounts without touching the emergency fund, which can be used to invest and grow.

Important Note: Non-payment of loan EMIs on time will hit your financial growth. Timely repayments help in building your credit score and with a healthy credit score, you become a darling of the banks, meaning you can be qualified to avail of larger loans in the future.


Loans can be helpful in a plethora of ways if used properly, which means making timely repayments and pre-deciding the EMIs based on your financial eligibility. If you miss this step then the loan in itself could become a cause for worry and concern.

Disclaimer: The information in this article is compiled from various sources and is an opinion piece only. This is not to be taken as a substitute for professional advice on managing finances, reader discretion is advised.


How much can I borrow?

The amount you can borrow as a loan depends on the lender and your creditworthiness. The other aspect is the purpose for which you require the loan. If you are thinking of purchasing a house or a car there are home and auto loans for that, but there are criteria that you would have to meet to get the loan. Personal loans can be used for anything, however, then again you will meet certain expectations to avail of the loan.

What happens when a loan EMI is missed?

The bank or lender sends you reminders and calls to remind you about the missed payment. If you are still unable to pay the EMI, a late fee is levied on the EMI making it more expensive. Bank recovery agents would call or meet you to collect the missed amount. If even after these attempts, payment is not made, then you are termed a defaulter and the missed payment shows on your credit report. This affects your ability to avail loans in the future.

How to pay back the loan?

You can either do it via EMIs that are automatically deducted from your account via a NACH Mandate or you can give post-dated cheques with EMIs that can be written in the bank’s favour.

What happens to the loan if the borrower dies?

In case of a personal loan if there is a co-applicant along with the borrower then it is the co-applicant who will have to pay the due loan amount. If there is insurance on the loan then the insurance pays off the loan. However, if there is no co-applicant then the rules and regulations come into play. But no mandate states that the loan would have to be paid by the kin of the deceased.

If it is a big-ticket loan like a home loan, the bank seizes the property and checks with co-applicants, and next of kin to pay the loan, if anybody takes responsibility then the property is returned to the owners.

What is preclosure?

Preclosure or foreclosure is when you make all the payments on a loan before it is due. This is chargeable as banks lose the profit they would’ve earned if you would’ve continued with the repayment schedule.

axio, however, offers personal loans at zero preclosure charges. Check the offers here