Personal loans are unsecured loans that financial institutions offer you to meet your financialneeds and tackle the uncertainties of life. There are numerous situations when taking a personal loan can be a perfect decision.
Some of the best reasons for a personal loan include expenditures like a medical crisis, education, wedding etc.
In the past decade, the graph has boosted sharply with the number of people applying for personal loans.Just in the last 3 years, unsecured loans have noticed an increase of about 4 times.
This growth is based on several factors such as lower rates of interest, faster and technology-based loan amount transfers etc.
There can be numerous reasons, however here are the top 5 situations wherein a personal loan could be the best choice.
- Medical Disasters
A medical disaster is one of the peak reasons why you may apply for a personal loan. With growing medical and hospitalization expenses, even those with health insurance cover tackle or suffer while paying the bills.
You may get outof your sum insured or you may have to pay medical bills for an old parent without any health insurance.
In such events, an instant personal loan can function as a saviour. There are numerous loan apps and financial institutions in today’s era that offer instant loan to bring you out from an emergency.
- Debt Consolidation
One of the top reasons to applyfor a personal loan is debt consolidation. Handling several loans and credit card dues from various lenders can standdifficult.
Lacking on payments can lead to a negativeeffect on your credit score. Getting a personal loan in such events can bring you out from financial emergencies. All you need to do is uniteseveral payments into one debt with the aid of a loan.
Itoffers various benefits that include relishing a lower interest rate which can aid in lowering the timeframe needed to repay your loan.
- Wedding Expenses
Indian weddings are popular across the globe for its uniqueness and the expenses can spin out of hand when style andlavishness become the agenda.
In spite of proper planning, most of the time, wedding expenses cross the budget and estimates. An average wedding function today in India costsaround Rs. 10 lakh.When costs are high, there are higher chancesof facing an unexpected financial emergency.
You can applyfor the funds needed to turn your wedding memorable. The personal loan for the wedding can be utilized to fund any element of the wedding right from the dress, dining, photography etc. This will aid in making sure that your wedding expenditures don’t distresson your savings.
All you need to do is fill the loan application and submit the documents needed. You can pick a repayment tenure that suits best as per your needs. The funds will be disbursed to your bank account instantly on the same day of your loan application approval.
- Higher Education Expenditures
If you are planning your child to pursue higher education, an education loan from a bank may not cover each and every expense.
There is an ample number of costs such as living costs, travelling costs and a large number of other expenses that needs a considerable amount of money.
If you’re lacking funds before sending your child for higher studies, a personal loan can help you amazingly meet your child’s higher education expenses.
- Home Repair & Renovation Expenses
It can be understood that home renovation may not be an emergency, although, there are times when our homereally asks for an emergency repair.
There could be a broken wall or ceiling right before the monsoon, or severalnooks of your home may be in immediate need of repair or renovation before a significantevent.
Such repairs and renovation can’t be ignored, thereby, you’ll need emergency financial helpfor a short period. You can either bring out your savings or apply for an instant personal loan such as SBI personal loan to pay the repair costs.
The Bottom Line
Eventually, there are numerous other reasons when you may avail of a personal loan since nobody knows when an emergency can knock on the door of your life, however, these are top 5 reasons that the people often come up with while applying for personal loans in India.
You must check for rates of interest, type of interest rates, loan tenure, processing fees, prepayment charges, etc. These are the fundamental things that you should check before you apply for a loan.
Secondly, before you pick your lender for a best personal loan, it’s essential to contrast with several banks and NBFCs and take a smart decision.
Besides this, now in today’s finance world, there are also numerous loan apps that offer the instant loans even within an hour with attractive interest rates, thus you can download them from the Play store/Apple store and apply accordingly.
