5 Scenarios in Which a Personal Loan Can Come in Handy
A personal loan is perhaps one of the best financial tools for meeting your urgent needs. From big-ticket purchases to your wedding expenses, personal loans have got you covered. In addition to financing your necessities and goals, a personal loan can also help you in establishing your credit report. But the best part about a personal loan is its amazing features. You can avail a personal loan with ease, as it needs minimal documentation, have simple eligibility requirements, and the process is extremely fast. Just download a loan app on your phone, check your eligibility, find the best lender and apply for the loan online. Once the lender verifies your details, the loan amount will be disbursed into your account within hours.
Read on to understand how an instant loan can come to your aid –
Situations Where Personal Loan Can Come in Handy
These five scenarios illustrate how a personal loan may be your greatest friend and assist you in meeting your financial obligations.
1. In Case of a Medical Emergency
Medical emergencies are often unprecedented and they can cause a big dent in your bank account. Though you might have some savings for your emergencies, a hospital bill can easily surpass your savings. In such a situation, an instant loan can come to your aid. It’s quick, easy to avail and hassle-free. You can apply for this loan from anywhere using your phone. Just download a loan app, find your suitable lender, fill up the loan application and furnish the requested documents correctly.
The loan amount will be credited into your account within 48 hours. An instant loan saves you from the hassles of visiting the bank, or submitting multiple hard copies of your document. With a loan app, you can avail the loan amount with ease, and on time.
2. Financing a Big Ticket Purchase
Big ticket purchases like mobile, laptop, fridge or any other home appliances may often exceed your usual budget. You can either wait for months to save up or get your important purchases done with a personal loan. Getting a personal loan becomes a smart choice when you are getting a great discount on the product or when you need the product at the earliest.
Lenders often have low eligibility requirements for an instant loan. Also, a personal loan provides you with a flexible repayment period of 6 to 24 months. Thus, you can make your big ticket purchases and make the payment in easy loan installments.
3. Hosting a Grand Wedding
In India, wedding is a big event that often comes with a hefty bill. With multiple functions to cater to, going over the budget is very common in Indian weddings. As such, availing a personal loan can help you meet the last minute gaps. A change in décor, accommodation for extra guests, purchasing gifts for relatives and other such expenses can be easily taken care of with a personal loan.
A personal loan gives you the financial cushion to accommodate these extra costs with ease. You do not have to liquidate your investments or sell your assets, with personal loan you do not even have to put your assets as collateral. Just avail an instant loan through a loan app and get your expenses covered.
4. Paying Off High-Interest Loans
People often make the mistake of availing a loan without comparing the offers from different lenders. Also, at times, they settle for a loan with high interest rate because of poor credit score or income related issues. However, you do not have to stay stuck with the same loan and pay high interest on your loan. You can avail a personal loan with better terms and get your loan transferred.
In addition to this, a personal loan can also come handy in case you are having multiple debt accounts. Having multiple credit card bills can negatively impact your credit score. As such you can pay off all your credit card bills with an instant loan. Credit cards often have very high interest rates as compared to personal loans.
5. Funding Education
Though education loans are already available for getting your education related funding, but they do not cover all your costs. You can avail a quick personal loan to take care of your travel related expenses, or expenses of the mess or other personal expenses.
Also, many people are not able to secure an education loan due to several reasons. In India, banks offer education loan only to students enrolled at esteemed universities or if their parents are able to provide a guarantee against the loan. As such, a personal can be your best option.
Few Other Situations Where Personal Loan Can be Helpful
Here are a few other situations where a personal loan can be very helpful for you:
- Renovating your home
- Purchasing a new machinery
- Funding your business
- Covering moving expenses
- Financing your vehicle
A personal loan is a very convenient and useful financial tool, which, if used smartly can help you manage your finances well. However, though the availability of an instant loan has increased these days because of the loan app, it’s still important to be a responsible borrower and only apply for these loans when you really need them. You should be a prudent borrower and only apply for a loan as much as you need and of the amount that you can repay.