Reasons Why Many People Take Out a Personal Loan
Be it any financial crunch, personal loans can be a life saviour. These instant loans are easily available and don’t need any collateral too. Today, these loans have become extremely popular because of the various benefits that they offer, such as easy application, minimum documentation, instant approval, quick disbursal, and so on. These loans are multipurpose and can be used for various requirements.
Here are some reasons why many people avail a personal loan:
Wedding Related Expenses
Personal loans can be used for wedding ceremonies. You can utilize a wedding loan for purchasing dresses & jewelry, booking venue & accommodation for the guests, managing other expenses, such as honeymoon vacation, catering, and so on. You can avail of a marriage loan of up to Rs. 25 lakhs for bearing marriage-related expenses.
Business Requirements
Personal loans are useful for not just your personal needs but business-related expenses too. You can use these personal loans for self-employed to start a new business, purchasing raw material, stocking up your inventory, meeting cash flow requirements, and bearing other unpredicted expenses which cannot be done from your own pocket always.
Medical Emergencies
Medical emergencies usually come unannounced, and you may not be prepared enough for them. That is why many people use personal loans during medical emergencies. Although medical insurance is there to cover these expenses, they cover it to only a certain extent. If your bills exceed the sum assured, a personal loan is useful.
Credit Card Bills Clearance
Personal loans are also used frequently to clear the bills of multiple credit cards. You can take a loan to clear all your dues and then pay only one consolidated EMI each month.
Car/Two-Wheeler Purchase
Many people purchase a new car by making a down payment and then taking a loan. Instead of doing this, you can take a personal loan to purchase a car. This will enable you to pay for the car in full in one go, without hampering your savings. You can also use a personal loan for a two-wheeler purchase.
Vacation
If you don’t have enough money to travel to your favorite destination, personal loan for travel can be the solution. Take a travel loan, enjoy your vacation, and repay the borrowed funds in EMIs within the flexible repayment tenure of your choice.
If you need money for repairing your house, enhancing the look of your place, upgrading your kitchen, or for other home renovation work, you can take out a personal loan. Spending a personal loan for this purpose can also provide you tax benefits.
Debt consolidation
It can be a daunting task to pay and manage multiple debts separately. Debt consolidation helps you combine all different payments into one single payment having a fixed interest rate, a fixed tenure, and a single payment date.
Education
You can also avail this multipurpose loan to finance the higher education of your children or yourself. The loan amount can be utilised for tuition fees, hostel fees, and other such expenses.