A Personal Loan brings a sense of respite in today’s age of multiple financial obligations. Many financial companies have made them available in highly customised forms, fulfilling both the short-term and long-term needs of borrowers. That is why it does not come as a surprise that these unsecured, pocket-friendly loans have grown from 9.6% in February 2021 to 12.3% in February 2022. The prime reason for Personal Loans’ growing popularity is that there is no end-use restriction. So, whether one needs money to renovate their house, organise a wedding, fund a foreign trip, or purchase a laptop, the availability of Personal Loans at a few mouse clicks has drastically revolutionized the Indian lending landscape.
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As digitization makes these loans more accessible and inclusive, here are a few situations when individuals can borrow from a Personal Loan finance company and fulfil their financial needs.
Benefits of Taking a Personal Loan
Some notable benefits of Personal Loans include:
Usage Variety: A borrower who receives funds via a Personal Loan may use it for any purpose, be it to fund a wedding, education, vacation, medical emergency, or home improvement. One may apply for an instant loan online to satisfy any needs.
Source of Emergency Fund: Many people in India live paycheque to pay-cheque, without any funds to fall back on. For them, getting a loan to handle an emergency is a better option than borrowing from friends and family. Whether it is a medical bill or a sudden foreign trip, having instant funds for a rainy day is the best idea.
Competitive Interest Rates: Personal Loans are low-interest loans compared to credit cards and many other unsecured loan types. Due to the increasing demand for Personal Loans in India, many NBFCs have started offering them at competitive interest rates. Borrowers may take advantage of this scenario and get the best deal they deserve.
Improved Credit Score: Many people take a Personal Loan to improve their credit score and loan eligibility over time. A Personal Loan adds to the variety of loans in an applicant’s credit portfolio, and its flexible repayment terms make EMI payments manageable, thereby improving the borrower’s credit rating.
No Financial Burden: The unsecured nature of Personal Loans keeps the borrower’s assets safe even during a loan default. Besides that, their flexible repayment terms allow borrowers to adjust their EMIs according to their monthly repayment capacity. So, even during a financial crunch, the borrower can continue repaying the EMIs to avoid default.
Times When a Personal Loan Can Fulfil Financial Needs
Borrowing from a reliable Personal Loan finance company helps fulfil a variety of financial needs, including the following:
- Wedding: Indian weddings involve lots of fun and festivities, along with several expenses that act as dampeners. However, there is no need to cut corners when one can take a Personal Loan to make this event memorable. Fund the venue, decor, designers, or caterers with a Personal Loan and make the day special.
- Higher Education: As learning abroad avenues have become more accessible, lack of money should not prevent someone from getting the best education. Instead of funding higher education with savings, fund it with a Personal Loan and cover the costs of fees, living expenses, travel, accommodation, gadgets, and more.
- Medical Emergency: Medical emergencies often come unannounced, and insurance policies usually do not cover them. During these times, most people require a lump sum of money at short notice. This is when a Personal Loan comes to the rescue. Instant approval and immediate disbursal of these low-interest loans offer financial assistance at the right time.
- Home Renovation: Renovating a home can drastically change its look and feel. However, the expense can drill a hole in your pockets. Take a home improvement loan instead of using up your savings and find a handy solution to build your dream house.
- Vacation: Dream of enjoying holidays in Mauritius or another international location? Easily bridge the gap between that dream and reality with a Personal Loan for travel.
Financial needs may arise at any time without warning. An individual may have enough funds in the savings account, but there are situations when one needs extra funds. In that scenario, a loan from a Personal Loan finance company can be the best choice. There are several advantages of taking these loans, especially if the borrower has a decent credit rating.