The reason why they are so popular is because
- They are easy to get,
- Require minimum documentation,
- Quick disbursal,
- Don’t require you to put up any collateral, and
- Can be used for absolutely any purpose
So, whether it is to renovate your home, buy a car, or even shopping, you can use a personal loan to finance any personal need.
But, should a personal loan be used for shopping? Would it be wise to do so?If you’re looking for answers to this question, we’d suggest you read on.
The answer, quite honestly, depends on the situation you are in. As people differ, so do their tastes and preferences.
Taking a personal loan for shopping depends on the items you are thinking of purchasing, as well as the need for it. While you can take out a personal loan to buy items that you’ve preplanned, it is advisable to use it to buy items of need like furniture for your home, kitchen appliances, or gadgets which you require for your job or studies. A personal loan can turn out to be a great way of financing items that you need and not want.
However there are two points you should always keep in mind while taking out a Personal Loan for shopping
Loans Last LongerOnce you take a loan, you will be bound to pay EMIs monthly. This will add to your monthly expenditure so you must plan accordingly.
Look for other options of financingPersonal Loans come with a high rate of interest, so unless you absolutely need to take one out, you should consider other financing options for shopping. Given below are a few of them-
Consumer Durable LoansIf the items in your shopping cart are home appliances, a consumer durable loan could turn out to be a good idea. These are available at a rate lower than personal loans or even credit cards. Some Non-Banking Financial Corporations (NBFCs) also collaborate with superstores and brand stores to offer zero-cost EMIs.
Credit CardsFor normal shopping, credit cards are God sent. So, if you are planning on making such purchases, keep the credit limit free on your card. The EMIs can be created directly by the retailer or by calling on the customer care number of your bank. Though credit cards also come with interest charges, they can be managed easily with good planning.
At the end, personal loans for shopping can be a good idea if you’re purchasing an item of need, and not want. But before choosing a lender, you should also weigh other options of financing available in order to make a more well-informed decision.
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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