In this article, we tell you when personal loans are a good idea and the common personal loan uses.
1. Emergency situationsPersonal loans are the best way to arrange funds in the shortest time, and therefore one of the ideal personal loan uses is during emergency situations. One of the most common emergencies stated is medical expenses where you immediately need funds and substantial amount too. In fact, for any planned surgery, although it is easier to arrange funds by using your savings, personal loans can be a good resource to fall back on.
2. Consolidate credit card debtsOne of the best personal loan uses is to consolidate credit card debts. If you have more than one credit cards that are maxed out, it is recommended to consolidate all credit card debts into a personal loan. Moreover, this also eases your repayment method of paying for just one type of debt instead of focusing on multiple credit card payments.
3. Wedding expensesAnother common situation which is ideal for personal loan uses is for covering wedding expenses. One’s marriage is the most special and important day. Since there are various types of expenses associated with weddings, including shopping, decoration, and so on, it is ideal to take a personal loan instead of using a credit card.
4. HolidaysWhile everyone says it is better to save and spends, there might be situations where the savings cannot meet the expenses and will not be sufficient. In such situations, one can opt for a personal loan to cover the expenses and enjoy the holidays without any worries.
5. Paying for margin money of the houseFor home loans, most of the financial institutions do not lend 80 per cent of the cost of the property wherein the home buyer is supposed to pay the remaining amount. The remaining amount to be paid for the house is called the margin money. Considered to be one of the best personal loan uses, a personal loan can fund for the margin money and other expenses such as stamp duty and registration charges.
6. Repair and renovation of the houseIn ideal scenarios, a personal loan can be used for repair and renovation of the house. Since the turnaround time for personal loans is the shortest, it is ideal for urgent repairs and renovations.
Click here to know more about Personal Loan Eligibility.
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.
Disadvantages of Early Retirement - What Happens When You're Not Working?
Early retirement seems to be good, many people enjoy life without working especially with extra earnings. But they are not aware about the cons. Lets explore the disadvantages of retiring early to save your retirement life.
5 Benefits of Health Insurance that Makes it a Must Have Cover
Here are the 5 benefits of health insurance that makes it a must to cover
When Should You Withdraw Money from a Mutual Fund?
In case of a sudden change in fund strategy or an underperformance scheme for more than 3-4 years, it makes sense to withdraw money.