When Should you Take a Personal Loan?

Borrowers take personal loans to meet an array of needs, given their versatile nature

A personal loan can be used to finance just about anything. Whether it’s a vacation, wedding, child’s education fee, new vehicle or medical expenses, a personal loan can help you out. This is one of the easiest loans you can take, where no collateral is required and not many questions are asked. What does this mean? You can use the loan amount for multiple purposes – be it financing an emergency expense or checking an item off of your bucket list.

Borrowers take personal loans to meet an array of needs, given their versatile nature. Not sure when you should take one? Here are some of the circumstances under which you should consider applying for a personal loan.

When you want to consolidate debt

Say, you have multiple outstanding debts and are finding it difficult to manage and track them. Opting for a personal loan would be a good option in this case to get rid of multiple loans to be paid over different time frames. Instead, you can effectively group them into one collective debt obligation over a fixed tenure. This will make it easier for you to manage your debts without getting overwhelmed.

Another situation where you can avail of a personal loan is to pay off a loan with a higher rate of interest. By getting a personal loan with a lower interest rate, you can reduce your interest burden.

When you want to pay off a large credit card

In case your credit card has accumulated a large bill, it is wise to opt for a personal loan to pay it off. This is an especially good idea if your personal loan interest rate works out to be lower than that on the credit card bill. This way, you can lower your interest payments and fulfill a debt obligation quicker.

For higher education

If you plan to go abroad to study, you understand how expensive it can be with tuition, living expenses, commute, etc. You can opt for a personal loan to ease the burden on your finances while you study overseas. Check the lender’s eligibility criteria, repayment options, interest rates, etc. to understand the terms and conditions.

For medical emergency expenses

A medical emergency can show up completely out of the blue and shake your financial foundations. The cost of healthcare is high and hospitals usually ask for complete payment upfront. Your health insurance might absorb the impact up to some extent but might not cover other additional expenses. A personal loan can be a good option in such cases. With quick disbursal, personal loans give you access to funds right when you need them!

For your Dream Wedding

Destination weddings are loved by everyone, but a lot of people worry about the expenses. However with a personal loan at your disposal, you can plan your dream wedding without worrying about the expenses. Thanks to some of the banks such as IndusInd Bank, you can easily apply for a personal loan online and start preparing for the wedding of your dreams.

For Renovating your Home

Renovating your home can completely change its look and also help you repair any damages caused due to natural calamities or any other reason. In addition, a home renovation also ensures that you are staying in a safe place. However, you don’t need to use your savings to renovate your home. All you need to do is apply for a personal loan and go on with the renovations without worrying about the expenses.

For a Fantasy Vacation

Vacations help us rewind and de-stress from our everyday hussle. But, many people end up postponing a dream vacation that they always wished for considering the budget restrictions. This is where a personal loan can come to your rescue. Personal loans are not just great for meeting our emergency expenses but also for fulfilling your luxury requirements.

For Buying your Dream Car

Owning a vehicle has become a necessity rather than a luxury. Considering the inconvenience and safety concerns related to public conveyance almost everyone prefers buying a vehicle to commute with ease. However, if your dream car is a bit out of your budget, you don’t need to be disappointed. Now, you can use a personal loan to finance your dream car. All you need to do is apply for the loan online from a trusted financial institution like IndusInd Bank and go ahead to purchase your dream car.

To sum up

A personal loan can be a life-saver in many situations you might encounter. Thanks to their quick disbursal, you can get out of a financial bind with these loans. Now, you can easily apply for a personal loan online from the comfort of your home or office. Many renowned banks such as IndusInd Bank have a 100% online and paperless application process for the convenience of the applicants. So what are you waiting for? Apply for a personal loan online to meet life goals, pay for emergencies, and fulfill your dreams!

Disclaimer: No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content.

( Source : Spotlight )
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