New Delhi, Nov. 24 -- If you are short of funds, one of the common solutions is to borrow money from someone you know or raise a personal loan from a bank. Meanwhile, you could also take a loan to buy something of indulgence or luxury.

Will that be a rational thing to do? It has its own advantages and disadvantages. Here we list out some common reasons for taking a personal loan to buy a luxury item. These are followed by some cons of doing it.

I. No collateral required: When you take a personal loan to buy an item of luxury item, you do not need collateral. This means you do not risk loss of any asset if you skip a payment. So, it is a convenient way to procure an asset at a time when your financial situation does not support it.

II. ...