While personal loans are a great option to access funds for virtually anything, it’s important to determine your reason behind applying for one and doing your research beforehand.
You may need the money for large purchases, a sudden unexpected expense, debt consolidation, an emergency or something else. You have the option to pay back your loan in monthly installments over the course of a few months or years, depending on your circumstances and discipline in loan repayment.
Here are the top reasons why you may consider taking on a personal loan:
- Home Renovation - If you are a homeowner who wishes to repair or upgrade your home, you can finance a small to mid-size home improvement project with a personal loan – whether it’s replacing a roof, fixing the plumbing, adding a fixture, buying a major household appliance or the latest gadget. It’s a good fit especially in cases where you do not have the required cash on hand and do not wish to use a collateral against your loan.
- Marriage Expenses - If you dream of a big wedding but are limited by budget constraints, a personal loan can help you navigate your wedding-related expenses like venue booking, catering, holiday funds, shopping or more.
- Moving Expenses - If you wish to relocate to a new city and need additional funds for transporting your furniture or vehicle or other expenses, you can cover your moving costs with a personal loan. It also gives you financial respite if you are between jobs or are planning to make a career switch, without having to use your savings or emergency fund.
- Education Expenses - If you wish to supplement the education loan of your child, spouse, or a loved one, you can opt for a personal loan and pay off your debt systematically in a few years.
- Travel Expenses - If you have a dream destination in mind but are put off by the cost involved, you can opt for a personal loan and self-indulge in that one-time dream holiday. It’s also easier to pay off your debt in a timebound manner without being overwhelmed by the expenses.
- Emergency Expenses - You can also bolster your emergency fund with a personal loan. Unexpected expenses by their very nature come unannounced and may catch you unprepared. During the uncertain times of a global pandemic, it’s prudent to keep extra cash in hand and depending on the kind of emergency, be it the loss of a job or sudden medical bills, find quick assistance with the right kind of funding.