7 most common reasons to take a Personal Loan

With minimal documentation and a quick approval process, personal loans are the ideal source of funding if you’re looking to get out of a tight spot. This ease of procurement means that there are many reasons to take a personal loan, some of which have been mentioned below.

Switch Up Your Home

Remodelling is a great way to add value to your home, so why not invest in home improvement? You can use a personal loan to improve your home’s functionality or even for a simple decor upgrade. The personal loan interest rate is a lot lower than credit card interest rates, and you’ll save funds on home equity in the process.

Take a Vacation!

If you really need a vacation, don’t swipe your credit card—take a personal loan instead. EMIs cost less with personal loans, and by taking a personal loan for a holiday you won’t have to deal with the stress of high-interest credit card repayments. Plus, you’ll be able to put together a flexible EMI schedule that doesn’t compromise on your lifestyle.

Fund Your Meds

Many health insurance policies only cover a few medical procedures. If you find that you need an urgent surgery which isn’t covered by your existing insurance policy, you should consider a personal loan. Taking a personal loan for medical emergencies is the easiest way to pay for treatment that you sorely need.

Learn a Thing or Two

Getting sanction for a student loan can be time-consuming and expensive. And with loan repayment tenures lasting as long as 12-15 years, you might end up spending a fortune. Instead, take a personal loan for educational purposes. With a short repayment period and solid prepayment facilities, it’s the best source of finance when you want to stave off long-term debt.

Tie the Knot

As delightful as they are, weddings tend to be frightfully expensive. Take a personal loan for your wedding, and you can get married without worrying about the finances involved. With low-interest rates and quick repayment, you can easily pay back the loan while settling blissfully into married life.

Hitch a Ride (or Two)

Financial institutions provide car loans when you’re looking to buy a new vehicle. However, if you already have an existing, unpaid car loan, getting a second one is near impossible. In this situation, personal loans can provide you with the financial assistance you require for your second car.

Pay-off Other Loans

With a personal loan, you can pay off your student, medical, as well as credit card debts, all of which often prove to be more expensive in the long run. The fixed rate of interest on personal loans means that you always know the amount you need to repay, and this can help you in times of financial uncertainty.

As you can see, the benefits of personal loans cannot be stressed enough. Not only do they offer a ready source of funding, but also come with flexible repayment packages that can make your life that much easier.

Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India.