Quick Verdict
Mostly myth. A loan can help you, or it can become a burden. It depends on the loan and your situation.
Why People Believe It
We hear plenty of stories about people trapped by EMIs and credit card dues. That can make all borrowing seem like a bad idea.
Reality Check
An education loan could help you pay for a useful qualification. A home loan could help you buy a house. But neither loan is automatically a good choice. Look at the interest, fees, total amount you will repay and how comfortably the EMI fits your budget. A loan that leaves you short of money for regular expenses or emergencies can cause trouble, even if you borrowed for a good reason.
A Better Rule
Before taking a loan, ask yourself: Do I really need it? What will it cost me in total? Can I still manage the EMI if my expenses go up?