A personal loan is a very handy form of financing that can help you out at various times. Whether you have a medical emergency or you need to pay for your home renovation, you can get a personal loan quite easily. A personal loan is an unsecured loan that you can take if you have a healthy credit score. If not, you can still get it but you may have to opt for a higher rate of interest. These days, personal loans are easily available online and you can repay them in easy instalments. Take a look at this article to know about the five common reasons why most people opt for personal loans. If you too need financing for any one of these, you can safely opt for a personal loan.
- To pay for marriages:
Personal loans are commonly taken in India to pay for weddings. You can take a personal loan for your own wedding or to cover the expenses of the wedding of a family member. Make a budget and see how much you are falling short and borrow that amount only, even if you are eligible for a higher loan amount.
- For a medical emergency:
At times, medical emergencies leave us penniless and there is no way in which you can arrange for instant funds. A personal loan comes in very handy at such times as it gives you the money you need within a few hours and you can settle the medical bills. This is another important reason why you can opt for a personal loan.
- For education:
Education loans have many clauses and limitations. They are difficult to get at times. This is why many students or parents of students prefer taking personal loans to pay for college admission. Therefore, this becomes a common reason why people rely on personal loans in India.
- For home renovation:
Buying a house is not enough – you need to do up the interiors, especially if it is a resale property. This is another common reason why people opt for personal loans. They take the loan and pay for the remodelling before they move in. The same holds for old houses that require maintenance and renovation.
- For a loan down payment:
And last but not the least, personal loans are often taken by home loan or car loan seekers. To buy a car or a house, you need to make a down payment. The rest of the amount is covered by the loan. To pay this, people rely on personal loans as very few people have that amount lying in their bank accounts.
A word of caution
While a personal loan helps you out in a financially challenging situation, you have to be careful and not take the loan randomly. A personal loan is an expensive loan and the interest rates are high. So ensure you take the loan only when there is a big and serious requirement. After you take the loan, repay it diligently and keep your credit score intact.
