Personal Loans are new-age friends in need. Generally, you would first try to explore different sources of finance like using savings/investments, borrowing from relatives or friends, or using a credit card. However, you should consider taking a Personal Loan to finance your big-ticket expense. Here’s why:
Reasons to Take Personal Loan
Firstly, Personal Loans are unsecured, thus, eliminating the need to provide a collateral to borrow funds. Secondly, it does not restrict fund usage to specific needs. Once you have the funds, you can use them at your will. Thirdly, getting a Personal Loan is an easy and quick process. Use online EMI calculators to work out the best tenor and EMI amount.
You can avail this loan for a variety of reasons. Let us look at five top reasons to take a Personal Loan.
- To Revamp Your Home
Remodelling your home would give the feel of a new place, without having to buy another home. Although not as expensive as owning a new home, home improvement and remodelling needs substantial cash. The credit limit available on your credit card may not suffice. But why give up your desire of giving your house a face-lift? A Personal Loan can meet your needs. It can help modify the interiors of your house, add a floor, refurbish your kitchen, create a garden, paint the house or change the furniture. Besides, availing a Personal Loan for house gives an added advantage of tax deduction under Section 24(b) of Income Tax Act.
- To Take Care of Previous High-Interest Debt
A car loan, home loan, credit card payment, education loan… Managing multiple loans taken for various reasons from different lenders can get tedious and confusing because of different payment dates, interest rates and EMIs. Miss one payment and your credit score can get affected. You can smartly consolidate all your debts into a single debt with a Personal Loan. The whole idea is to take a Personal Loan at relatively lower interest rate and use the funds to pay-off all the other high-interest loans. Being an unsecured loan, Personal Loan interest rate may seem higher, but are lower than credit card rates. Therefore, debt consolidation of this variant will reduce the interest outgo.
- To Pay for Personal Events
A soon-to-wed couple desires a wedding of their dreams and a honeymoon to an exotic destination. Weddings are an expensive affair, and so are international vacations. Instead of spending all your savings or borrowing from someone, opt for a Personal Loan to finance a wedding or a holiday. All you need to do is check your eligibility for Personal Loan and apply for a Personal Loan.
- For Medical Reasons
Emergencies come unannounced. In case of a medical emergency, having to worry about finances should be the last thing on your mind or even for your family. You may have a health insurance to take care of medical expenses. But even insurance comes with an asterisk mark. A basic health insurance policy excludes some illnesses and treatments from its purview, like cancer, heart disorder, or cosmetic surgery. There are also deductibles and co-pay clauses that require you to pay some amount from your pocket. However, with easy access to Personal Loans, you can avail funds quickly.
- To Finance New Business
Lack of funds hindering your dream of starting a business? Take a Personal Loan to get started. To avail a business loan, your business must be a few years old. Additionally, you are also expected to provide financial history and tax-related documents, which is not possible for a new business. Since Personal Loans are given to you as an individual and provide you with the flexibility of using the funds, it is a suitable option.
Personal Loan can be availed for various reasons but opt for it only when you are in dire need. Compare Personal Loans offered by various lenders before you finalize. Make sure you perform due diligence and take the loan from a credible lender.