New Delhi: Can a personal loan become so overwhelming that someone might consider drastic measures to escape repayment? Something similar unfolded in Madhya Pradesh’s Rajgarh district, where a borrower allegedly faked his own death to evade loans worth Rs 1.40 crore. He reportedly sank his car in the Kalisindh River to create the impression of his demise.
When rescue teams couldn’t find his body, the mystery deepened. Eventually, he was traced to Maharashtra, where he confessed to staging his death in hopes of having the loans waived off.
This bizarre case offers several important money lessons on avoiding a debt trap:
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1. Don’t Borrow Beyond Your Means
Avoid taking loans where the EMI exceeds 50 percent of your monthly income. This is a red flag for financial stress.
2. Consider Refinancing
Refinancing or restructuring lets you extend the tenure of a loan, reducing the EMI burden and making repayment more manageable.
3. Communicate with Your Lender
If you’re struggling, talk to your lender about pausing or rescheduling EMIs. Some banks may agree to temporary relief.
4. Seek Lower Interest Rates
Transferring a loan to another lender offering a lower rate can cut your EMI and total interest cost.
5. Choose the Right Loan Category and Lender
Interest rates vary across loan types and institutions. For example, personal loans usually cost more than business loans, and banks often charge less than NBFCs. Picking the right loan and lender helps keep repayments affordable.
