With the highly unpredictable nature of life, a financial emergency can arise anytime. However, when you don’t have enough funds in hand then a personal loan can help you save the day by providing you quick access to funds. A personal loan is an unsecured loan that you can avail from a bank, NBFC or any online lender in India. This type of loan is generally offered without any security or collateral, thus making it easy for you to get the funds without having to worry about arranging for any assets in case of an emergency. The personal loan amount you take can be repaid in easy EMIs on a monthly basis in flexible tenures ranging from 6 months-60 months. Since the personal loan amount can be used to cater to different types of financial emergencies, it is one of the highly popular loan products in India. The amount you take can be utilized to cater to various purposes including payment of medical bills, home renovation, buying a smartphone or others. Read this article to know about various reasons that you can opt to take a personal loan for your financial requirements.
Debt consolidation:
Paying off debts is one of the most common reasons given by people when opting for a personal loan. Taking too many loans from friends and family and having too much credit card outstanding can land you in a debt trap if you are unable to repay the money on time. Additionally, the interest charged on credit card loans and outstanding is high in comparison to personal loan interest rates. With low-interest rates, you can reduce the overall interest you have to pay towards different loans and also the time for repayment of the loan amount is high.
Finance your home renovation expenses:
A instant personal loan can serve as a great option to serve home renovation expenses. You can use the loan amount to hire an interior designer, purchase raw materials, buy furniture or even remodel your kitchen or even to add a swimming pool to the house.
Paying off medical expenses:
Paying off medical expenses is another reason as to why people opt for a personal loan. Though people these days have a health insurance policy, the insurer does not provide coverage for all types of medical treatments and diseases that may require one to pay funds from their pocket. At such times, the unavailability of the funds can disturb one’s peace of mind. Getting a personal loan can help you take care of medical expenses and treatments like dental treatments, cosmetic treatments, cancer treatment, and others. You can also utilize the loan amount for taking care of all the medical-related expenses.
Pay off wedding expenses:
If you plan to celebrate your D-day in style and don’t have enough finances in hand to take care of the expenses, then a personal loan can be of great use. The amount taken can be used to finance various wedding-related expenses like payment to the caterer, purchasing a wedding dress, booking venue, honeymoon ticket, and others.
Buying a smartphone:
If you want to replace an existing smartphone you use or wish to buy a new one, then you can opt for a personal loan to finance your smartphone requirement. You can get a personal loan as low as Rs. 20,000-Rs. 2,00,000 to buy a smartphone of your choice. With personal loan EMI starting at as low as Rs. 2500/lakh you can get the mobile loan at a low-interest rate and can easily repay the amount in EMIs.
Travel purpose:
Personal loan amount can be used to travel places. You can use the loan amount to take care of various travel-related expenses like booking travel tickets, shopping, buying insurance and others. Whether it is a romantic getaway, adventure or even a spiritual one, the loan amount can be used for any purpose. You can travel domestic or even to an international destination.
Conclusion
An instant personal loan amount can be utilized for any purpose. You don’t have to submit any documents or state any facts relating to the utilization of the loan amount. All you simply need to do is repay the loan amount back on time as defaulting on the payments can hurt your credit score and also attract heavy late payment fees and penal charges. Remember, repaying personal loan EMIs on time is a great way to increase your credit score and be able to secure more loans in the future. When taking a personal loan, it is also important to know that the loan comes at an interest rate that is included in the EMI that you have to pay. It is also mandatory that you check on the foreclosure charges, late payment fee, and other factors to ensure that you don’t end up in a debt trap in the long run.