Why do I need a Personal Loan? How Much Should I Borrow?

Personal Loans are usually used for a wide variety good reasons including

 

• Taking advantage of sales or bargains.

• Paying your tax bills (tax loans) – these are popular in Hong Kong.

• Education fees for your children.

• Consolidating your credit card debt to enjoy lower interest charges.

• Going on a holiday.

• Getting married.

• Personal emergencies.

Generally, it is advisable to limit your borrowing to the amount that you actually require. The general rule of thumb is that it is best to limit you total loan repayments (including mortgages and credit cards) to not more than 30% to 40% of your gross monthly income.