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Different Things you can do with your Personal Loans

Author: Poonam Dambare
by Poonam Dambare
Posted: Nov 03, 2018

Different Things you can do with your Personal Loans

The demand for the loans has been on the rise and this rising demand for the need of financial support is spread in the varied sectors of life. While, many a times, a person may be indeed of the financial support to buy a home, there are situations, when the financial crisis I owing to the business expansion and startups.

However, with the rising demand of the loans by the borrowers and more focus towards the better segmentation of the loans sector, allowed the whole loan sector in better categorization. Now, the situation is that every borrower is well informed about the loan types, and what to seek for during the times of needs. Now, there’s a variety of Loan types, like Home Loans, Personal Loans, Business loans, Doctor Loan and various others.

Where does Personal Loans fit into the Equation?

One is the Personal Loans, which as the name suggests, is the loan type, needed to fulfill the personal demands of an individual. Personal Loans is a short term unsecured loan, which requires on obligation in the form of any asset to be pledged, to avail it.

While, Personal Loan is a loan type which a borrower takes to fulfill short term obligation related to financial crisis, it requires no security to be pledged to the lending agencies. Thus, serving as a Unsecured loan type, the borrower can take care of the financial crunch situations with immediate attention. Now, the question arises, what things can you take Personal Loans for? So, here’s the immediate resolution to your query:

Things you can do with your Personal Loans

We don’t think that any bank or lending agency will put any restrictions of any sort, when it comes to where a borrower spend the money borrowed as a personal loan, there may be one exception in the list. In fact, you can spend the money of your personal loans, in whatever, you want to, below are some of those purposes, which people have been seeing spending their Personal Loans at:

For Buying a Car:

While, there is a separate loan type available for this purpose, there are situations, when people are being seen as taking personal Loans to buy a car. Even, if car loans are cheaper in comparison to the Personal loans, many people love to take the Personal Loans to cover their needs for buying a Car, because of the ease of application process and being Unsecured Status of a Personal Loan.

For Debt Consolidation:

Debt Consolidation Personal Loans are an option in front of the people. People often take Personal Loans in order to consolidate Multiple Loans into a single loan. Consider, if your credit card bills are stacked up and you are receiving consistent reminders to pay off the dues; you can easily take Personal Loans to clear all those dues and utilize Personal loans as Debt Consolidation Loans. The Deals of Loan funds Personal Loans for debt consolidation and for all other purpose at lowest rate!

For Home Improvement:

Even, if you are looking for the expansion of your home or some renovation purpose, you can avail the easy Personal Loans as offered by the Banks. You can avail Personal Loans for the purpose of buying furniture, or for buying any expensive gadgets or items for your home. Personal Loans allows you getting a financial Support without pledging any asset of any kind.

For covering Medical Bills:

In bigger cities, often the hospitals and doctors offer the service of loans to cover the medical expenses. But still, if you are looking for the better deals, you can knock the doors of the banks, online and can avail Personal Loans for this need. With no obligation of any kind, and a quick approval, you can pay off all your dues incurred in Medical Treatment.

For vacation:

While, most of the people are seen as taking the financial support because of some financial crisis, there’s a section of people, who like to live life, king size. Roaming, traveling and enjoying life is all what they want, and even if they have to take loans, for the purpose, they don’t hesitate in doing so. Personal Loans for Vacation Purpose, is on the rise in younger generation and the trend in India for the Personal Loan for this particular purpose, is on the rise with rapid pace!

For Wedding:

There are some situations, for the section of the society, who have to take the financial support to cover the wedding cost of their son or daughter. While, there are some, who like to lavish hard on their wedding and don’t hesitate to seek for the financial supporting hand, to cover their wedding cost. While, the situation for some is forced, for the others its purely optional. Whatever the situation is, Personal Loans for Weddings comes as a rescue for both the section of the people.

For Pet Care:

A Personal Loan can help you pay the unexpected cost of the treatment of the pet, which comes as a sudden surprise to some Pet Owners. You can easily cover the veterinary bill with the Personal Loan through any Bank.

For Paying off Taxes:

You can take out a Personal Loan pay your tax bill in a lump sum to avoid late charges penalty. Personal Loans by Deals of Loan can help you avail Personal Loans instantly for the purpose and you can get rid of being in such a situation of being penalized late charges over taxes.

For Education:

While, education loan is the best choice for such as it comes with several advantages over the Personal Loans. However, there are some situations, when you may need urgent need of finance to pay tuition fes, or to cover some educational items expenses, the Personal Loans can be a good option for you! If you will have the money in the upcoming weeks or months, where you can pay off EMIs, you can take a personal Loan to cover your educational bills, without nay worry.

For Business:

While, business loans can be dearer to many, there are many situations, when the business loans aren’t approved at all. With several criteria on the approval of business loans, it becomes difficult to take an approval for Business Loans. This is where the Personal Loans comes into the effect. If the Loan requirement is not too high for the expansion of business or for startups, you can easily cover that requirement, with the Personal loans. Even, the Personal Loans comes at cheaper rates, in some situation as compared to business loans (where it may go up to 24% in some conditions); it covers the needs of the finance instantly for the required business expansion or setup.

For improving Credibility:

If you haven’t been a good borrower in the past, and your credit score denotes this particular habit of yours, you can take the services of Personal Loans. How can it help in improving your credibility? In fact, by availing Personal loans and with its timely payment of EMIs, you are adding fresh credit points to your credit score, and thus can achieve better credit score, thus helping yourself in the process for any unseen future needs. Many people have been seen opting for this strategy, also in those conditions, where there’s no credit history at all. Thus, establishing a credit history and strengthening the financial profile with the Personal Loans is one of the benefits, you can avail with the Personal Loans.

When should you not use Personal Loan?

While, all major requirements are discussed above, on what purpose you can avail Personal Loans for, it’s the complete responsibility of Deals of Loan to offer advice on the situations, when you shouldn’t use Personal Loans.

If you can easily save money: Consider a situation, when you want a luxury item, or want to treat yourself with a luxury vacation! Consider your requirement! Is it so urgent? To serve yourself with a luxury vacation, or item is perhaps not an urgent need. Better you save your money and workout a better deal for yourself. You might postpone it to some months or seek an alternative cheaper one!

For bad investment:

Consider if you opted Personal Loan for an idea, which can generate you better returns, than your Personal Loan Interest! But, what if your investment plan doesn’t add any value to your portfolio? If your investment plan is not full proof, you will be repaying your Personal Loan on an investment, which went fruitless!

If there’s an instability on income and employment: Taking a Personal Loan, especially in the situation, when you are in unstable position in terms of employment and income, can turn the things even worse. It could hurt you more than it resolves your troubles. If there’s instability in your income and employment, better chalk out a plan, where the expenses can be minimized and savings can be calculated properly.

As, now you are well aware of Personal loans; where the amount taken can be used and in what situations, the personal loans should be avoided, you can make a better judgment, if you really require Personal loans for the purpose or not! So, if you have decided on taking personal loan, for whatever reasons of yours, here are some additional tips in how to compare personal loans deals as offered by different banks:

  • Loan Amount:

Check what’s the minimum and maximum loan amount, which you can borrow from your bank? Check, if the mentioned slab fit your needs and demands!

  • Loan term:

Shorter loan terms, can make you pay higher EMIs. While, the longer loan tenure can allow you pay less, each month. Have a check on the loan tenure, which the banks are offering, and compare it with your needs!

  • Fees charged:

What’s the upfront and ongoing fee on the loan? These fees will be either added in your principal loan amount or will be upfront payment; it may affect your repayment amount and the total interest to be paid by you!

  • Type of Interest rate:

The interest rates are of two types; one if flexible, while the other is variable. With pros and cons of each of them, you need to judge, what’s better for you. Don’t rush into the personal loan application completion and make a deep research and thorough examination of all the features associated with the personal loan.

  • Repayment Flexibility:

Check through your lender, if you are allowed to repay the amount preclosure. If the preclosure, comes with the additional charge? Check through the chosen bank, if you are allowed to make additional repayments free of cost and what are their terms and conditions in relation to the repayment flexibility!

  • Free EMIs:

There are some banks, which offer one EMI as a free, to their esteemed Customers. Are you that esteemed one? Are you eligible for one EMI free? An important aspect, which can save you some additional amount, you must surely enquire about free EMIs.

The Personal Loans are the best options to cover the needs of the urgent money during the financial crisis situation. Don’t be creative with your Personal Loans and borrow only what is required and what you can really afford to pay back. Any Money borrowed, comes with the added responsibility and you must not lavishly spend those money. The Personal Loans offer you much flexibility over the expenditure, you need to be ultra responsible in how you spend the money. Use Personal Loans to cover your urgent needs, and don’t treat Personal Loan Amount as a gift. Use it as your own money, which is borrowed from someone else, and which needs to be paid back on time!

While, any financial crisis can come in a person’s life, without any warning, better be prepared for the unseen future. Collect all the important points and considerations and best options for your personal loans and always be ready for it!

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Author: Poonam Dambare

Poonam Dambare

Member since: Aug 24, 2018
Published articles: 47

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