Do’s and Don’ts of Borrowing

Here are some do’s and don’ts of borrowing you can keep in mind to help you make better decisions-

Do’s of Borrowing	Don’ts of Borrowing
Before borrowing, be clear about the end goal and what the money will be used for	Do not borrow for goals with a high risk of return, and when the interest is a high amount for the money borrowed
Borrow from reliable sources, like scheduled commercial banks and weigh your best options within the available sources.	Do not borrow from a lender who does not follow a set of rules and has vague conditions on their loans.
Borrow when the time period, the end goal, loan amount and interest rates are specified and can be planned efficiently.	Do not borrow to pay back an existing borrowing. It will likely lead to a debt trap.

To learn about safe practices of repaying borrowed money, keep reading!