A personal loan is an unsecured type of loan which does not require you to keep any collateral or security against the loan. It is a multipurpose loan which can be used for many different reasons. Let us have a look at four common reasons for which people generally prefer personal loans-
1. Paying Medical BillsThe healthcare costs are consistently rising in India. While you might have your savings or even an emergency fund to manage financial emergencies, the smallest of medical procedures can cost thousands and lakhs of rupees.
A personal loan is an excellent choice to manage healthcare expenses. It helps in keeping your savings protected, allowing you to repay the loan in monthly instalments easily.
2. Home Repair or RenovationBe it an emergency home repair or improving the interiors of your home, taking a personal loan is a great option. Home repair or renovation is a big-ticket expense, which can put much stress on your finances without any kind of monetary support.
While there are now home loans available for such expenses, the shorter duration of personal loans helps you clear the loan sooner.
3. Repay High-Interest LoanIf you are currently repaying a high-interest loan, taking personal loan finance for clearing the same is also a smart decision. For instance, many people use multiple credit cards and often end up with high debt, which comes with high interest too.
Taking a personal loan for clearing such debts will not only prove cost efficient but will also make it easier for you to manage the repayment as you will now have a single personal loan to take care of.
4. Wedding ExpensesIndian weddings can be an extremely expensive affair. If you do not want to spend all of your savings on the wedding, you can use a personal loan to manage the expenses. Apart from the wedding, you can also take a personal loan for your honeymoon to an exotic international destination.
Similarly, if you want to take your family on an international vacation, a personal loan will keep your savings intact.
The Many Uses of a Personal Loan
As you can see, there are several life instances when taking a personal loan can prove very beneficial. Look for a reputed lender to get an instant personal loan to manage your financial needs in a simple, convenient, and time-efficient manner.
Learn more about your Personal Loan Eligibility here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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