The Indian economy was based on an excellent mechanism known as the barter system that our ancestors used as a way to get the required goods and services in exchange for providing the other part with the goods or services they had.
Many years after that, coins were introduced which were used as a medium of exchange and had become a huge success in making fair trade possible at that time. It was during Sher Shah Suri’s reign that the concept of ‘rupiya’ was introduced in the Indian economy. Now, the Reserve Bank of India (the central bank of our country) issues the currency under the RBI Act.
The Indian economy has been through a lot of progressive changes that were needed back then. From purely a cash-based economy, India is now shifting towards the cashless and more digitized version of the economy. The reason behind going cashless is to modernize, follow the ongoing trend, and make it easier to make transactions, whenever and wherever required.
Change that is uncertain in itself is the only certain thing around here. The perennially changing environment and the economy require the citizens to accept and inculcate these days for the growth of the nation. Resistance could be felt when debit cards and credit cards were introduced but now, they have become an inseparable part of our lives.
Debit cards were easily accepted but credit cards are considered a risky venture to date because of the costs attached to it. Credit cards allow an individual or entity to borrow money from the financial institution (banks and non-banking financial companies) without any prior balance maintained with the institutions.
Such facilities were good if needed in emergencies but they also have to be maintained. A credit card interest rate can go up to 40% per annum and sometimes it’s even higher. As much as it is loved by the people, it is also despised because of its high maintenance cost. The cost gets accumulated if not paid on time and the financial institution (banks and non-banking financial companies) keeps on charging interest and penalty on the borrowed amount. To avoid this situation from getting any worse, a personal loan can be taken and used to settle this amount.
A personal loan is a collateral-free loan provided with an economical interest rate. The financial institution (banks and non-banking financial companies) makes sure that the personal loan is given out with utmost comfort to the individual or entity borrowing it. The aim of this loan is to help individuals and entities during personal emergencies or to satisfy any personal need. Along with all the other benefits that can be availed of by taking a personal loan, the individual or entity can use this loan for paying off the credit card debt amount because the interest rate charged on the personal loan amount is way less than that of a credit card. For instance, Allahabad Bank Personal Loan policy is available to individuals and entities at an interest rate starting from 10.50% per annum and this is more feasible than the rates of a credit card.
So, when an individual or entity settles the credit card loan with a personal loan, the higher cost gets replaced with the low costs. Personal loans can be paid back as Equated Monthly Installments (EMI). The Equated Monthly Installments (EMI) has to be paid over the personal loan tenure. To be more certain about whether the individual or entity is comfortable with the personal loan costs, instant Personal Loan Calculator can be used, where the individual or entity has to mention the required details and they can know the estimated Equated Monthly Installments (EMI) that they have to bear.
Getting a personal loan is as easy as getting a credit card with lesser complex requirements. A personal loan gives more facilities to the borrowing individual or entity than any other available credit form. A personal loan can be an easy way out to prevent you from getting into an unwanted debt situation.