Personal loan, Aug. 11 -- A case of fraud has come to light in Pune, where a borrower took a loan of Rs.5 crore from a bank against the collateral of a property. The same asset was later used to raise another loan from a cooperative bank without obtaining a no-objection certificate from the previous bank. The borrowers happened to take the second loan on the basis of a forged NOC.

When the borrower did not repay theloan, this fraud was discovered. The case, although committed against public institutions, teaches us a number ofmoney lessons.

I.Amount of loan: The loan amount should be small enough to be repaid easily. When the amount of the loan is too big, one may get tempted to raise a fresh loan to repay the previous loan, thus fallin...