Money Guru: What Is The Difference Between A Good Loan And A Bad Loan? What To Keep In Mind Before Taking A Loan?

Good Loan - A loan that can increase your net worth by borrowing, leading to a positive growth in career, property. In which the rate of return is higher than the interest of the loan. Bad Loan - A loan in which the loan has to be repaid in addition to the interest on it. While taking a loan, keep in mind the debt to income ratio. Credit score deteriorates due to loan default: Col. Sanjeev, CEO, Hum Fauji Initiative and Viral Bhatt, Founder, Money Mantra.