Skip to main content


Nowadays loans have become an important financial credit on which more than half of the population depends. Availing a loan can help you to get various things such as updated gadget or any electrical appliance, willingness to avail some luxuries like financing the most awaited trip or fulfilling some urgent financial requirement. The easy availability and minimum documentation make loans more affordable to the common people; therefore, they often go for loans as per their requirements.

Debt traps are an intense issue these days and mostly delayed to understand it completely. Usually, most of the borrowers are unaware to realize that they are getting further into this trap. Hence, to stay financially fit, one most know about the signs that you are getting into a debt trap. A debt trap can be more dangerous if goes unnoticed and a person goes for a new personal loan or LAP to repay the existing loan. Here we have listed few signs which indicate a debt trap around you.

Availing loan for regular expenses: Many people take loans to meet their daily expenses such as paying the credit card bills, utility bills or to enjoy the luxuries of life. Sometimes, people even go for "Personal Loan" to fulfill the requirements. But it is very risky and can lead to a financial burden. Borrowing money is an easy way out for a short term but in long term paying a high interest rate on it can be a tough choice. So, borrowing money for regular expenses is a clear indication that you are falling into a debt trap.

Taking a new loan to repay existing one: Sometimes, a person borrow more than its repayment capacity, and it gets hard for him/her to pay it back. In case, borrowers start defaulting on installments and need to pay the penalty charges. If you are in the same situation, always borrow wisely and according to your repayment limits and do not opt for borrowing again to repay the existing debts. Use an EMI calculator before you "Apply For Loan" to avoid a debt trap.

Do not exceed the EMI from monthly income: Low interest rates and low EMIs sound very tempting and you may end up taking a loan but try to think twice to fall prey on these marketing strategies as it can lead you to a financial burden. If your EMI exceeds 50% of your monthly income, then it is a clear threat for your financial goals. It can ruin your monthly budget and reduces the chances of getting loan in long run.

Missing payments and EMIs: Sometimes, cash crunch may force you to skip some of your credit card bill payments and utility bills. This is acceptable once or a twice in the year but committing the same mistake again and again will charge you the penalties and late payment charges. These extra payments can affect your monthly budget which can again end up taking another loan. It indicates that you are not managing your finances well and it’s high time to start working on it. Hence, try to be timely with all your bills and EMIs.

At the end, these are some of the common signs which are the clear indication of getting into a debt trap. To eradicate such issue, always borrow according to your repayment capability and avail a loan only if you are left with this only option.


Popular posts from this blog


In India, being a developing country every year many start-ups are launched and operated successfully. There are really a great number of young people who come up with an excellent business ideas every year. But most of businesses fail and the main reason behind it is the lack of funding. Nowadays, banks and other financial institutions become more stringent in the eligibility criteria to sanction a business loan. And to " Make Your Business Loan Successful "  you need to provide a stack of documents to the lender. Then the lender verifies your documents and takes 30 to 40 days to disburse the loan. So the parallel way of business funding is ShubhBank. Our aim is at funding your dying business but our way of functioning is different from other traditional lenders. We provide easy business loans for small and medium-scale enterprises with progressive vision. ShubhBank have different process of gauging the loan eligibility than traditional banks and financing compa


    Nowadays, the coronavirus outbreak has affected our lives in countless ways. The deadly virus has made its presence felt in everyone’s personal and professional way such as from shopping groceries, socializing with people or commuting to workplace. It has also a negative impact on the country’s economy leading to widespread layoffs and pay cuts that have taken a toll on salaried individuals. If you are also a salaried employee and facing a loss of income then ShubhBank have stepped in with few options to guide you that how to overcome a money crisis amid " Covid-19 Lockdown " . We are happy to help you over this financial crunch by offering Loan against Insurance Policy and online Personal Loan to raise funds. Online Personal Loan: many banks and NBFCs have rolled out many personal loan offers for existing customers and who hold salary as well as pension accounts in their financial institutions in this lockdown period. You could also take the advantage of " Onl


In India, Gold has always been an asset that supports you in the need of an hour. If you have jewelry or ornaments or raw form of this valuable metal, you can simply borrow sufficient money by pledging it to the bank or money lender. The amount can be used for any purpose like marriage expense, purchase of property, investment in the business, construction of the home, education or to fulfill any other necessity.  " Gold Loan In India " is given by several banks, financial institution, or many lenders, you can choose as per your convenience. Each bank or money lender has its terms and conditions to give you the loan amount. Mostly you will get 80% value of gold ornaments. To know more about the Gold loan and its benefits, here are some key points you need to remember while applying for a gold loan. •    You can apply for the gold loan both online and offline. If you are applying online then make sure you have researched well. It helps you to be saved from fooled agencies by