While home loans and business loans are self-explanatory, a personal loan is open-ended in that can be used for purposes other than those specified by the lender.
The type of personal loan you can opt for depends on if you have any collateral to offer or not. A secured personal loan requires you to submit your assets as security for availing the loan. An unsecured loan, on the other hand, doesn’t involve any collateral but emphasizes on a good credit score. Apart from the credit score, lenders also take your credit history, repayment capacity, age, and employment status into account before giving you the loan.
Let’s look at some of the ways in which a personal loan can help you out:
1. Finance Your Dream Wedding
A wedding is one of the most important days of a person’s life and no amount of preparation and arrangement is ever going to be enough. So unless you’re planning on eloping, you’re going to have to do a lot of financial planning.
If you want your big day to be perfect in every conceivable way, seeking out financial support in the form of a personal loan is a great idea. Getting quick access to cash allows you to work on organizing the wedding without waiting for ages for your finances to be stable.
Since you only get married once, it’s completely understandable that you’d want to make it a lavish affair, and a personal loan allows you to do that. Once your tie the knot with your beloved, you can start working on the repayments. The affordable further ensure that your monthly budget doesn’t go haywire.
2. Take That Exotic Vacation
To travel is to live.
If you’ve always wanted to travel but haven’t had the money to do so, there’s a way around it. A personal loan can give you access to an immediate pool of resources to fund your international trip and cover all the expenses like plane tickets, luxury accommodation, and exotic cruises as well.
With loans of up to Rs.25 lakh and instant approval within 72 hours, your next trip can be just couple of days away!
3. Dust Your Hands Off Long Standing Debts
It can be a difficult task to keep track of and manage multiple loans and their payments. So if you’ve been planning on consolidating your debt, acquiring a personal loan is a great way to go about it.
This step helps you pay back your mortgage and also safeguards you from any financial setbacks in the future. If you’ve taken more debt than you can pay off, going for a personal loan would give you some much needed financial relief.
By availing of a personal loan, you can also minimise the overall interest payment on your other loans by foreclosing them before the tenure ends.
4. Generate Funds for Medical Emergencies
Unforeseen medical emergencies can catch you off guard and derail your finances. Though a health insurance can help you with most of the bills, they still don’t cover everything. Instead of completely draining your savings, opting for a personal loan will help you gain financial stability faster.
With immediate approval and affordable interest rates, a personal loan might just help you get the right treatment on time with as little fuss as possible.
5. Ugrade Your Nest
With increasing value appreciation of properties all across the country, you’d know the importance of investing in one. Though the value of your home depends majorly on its location, floor area, dynamic realty rates, and other key features, the home improvement projects you undertake also add to its value.
Since remodeling your home can prove to be a costly affair, taking a personal loan to ease out the finances is the next best alternative.
Upgrading your kitchen, bathroom, and floors with modern fixtures, lightings, and tiles will not only lift the look of your home but also increase its value. You can convert an idle wall or space into an activity-based nook. If you’ve some space indoors close to a window, you can add a sofa or bench there to turn it into a reading corner.
You can also cut down on your electricity consumption by installing energy-efficient windows and power-saving appliances around the house.
6. Get Your Hands on the Latest Everything!
Have your heart set on the latest iPhone but don’t have the right finances for it? Is your sorry bank balance preventing you from getting that 42-inch LED tv for your living room? Well, you don’t have to wait for better days anymore.
Opt for a personal loan and get the latest wonders of the tech world without waiting for ages! When your favourite gadget is on sale, a personal loan can provide you with immediate funds to take advantage of that opportunity. Also, the easy EMI payment scheme ensures that you effortlessly manage your monthly budget while repaying the loan.
Now that you know what a personal loan can help you do, don’t hesitate to avail it when you’re running short of funds. You can even opt for an and get instant approval for the loan from the very comforts of your home!
Make sure that you do your own research about the interest rates, tenure, and other aspects of the loan before you approach any lender. Evaluate your loan policy and offer letter to know of any hidden clauses or conditions that might deter your loan repayment process.