What is a Personal Loan?
For the uninitiated, a personal loan is an unsecured loan offered by banks and NBFCs that is payable by the borrower in equated monthly instalments, inclusive of the principal amount and a nominal rate of interest. It falls under the category of unsecured loans because a personal loan can be availed without offering any collateral.
To be eligible for a personal loan, you need to have a credit score rating of 700+ with a positive credit history. Most lenders look at your creditworthiness, along with other factors, to assess your personal loan application. One must always evaluate the purpose of taking a personal loan and determine the need to borrow and the ability to repay.
Speaking of the purpose of taking a personal loan, from debt consolidation to financing a wedding, here are 6 popular reasons most people opt for a personal loan:
6 Reasons to Apply for a Personal Loan
Debt consolidation is one of the key reasons most people apply for personal loan. This makes sense if you’ve multiple high-interest debts like existing loans, credit cards; you can avail a personal loan at a lower interest rate and use the amount to pay off your debts.
Combining all the outstanding balances and settling it off with a personal loan also gives you a reprieve from getting overwhelmed by multiple payment due dates. However, one of the best benefits of paying off your credit card balance with a personal loan is the reduced interest rate.
Whether it’s about remodeling the kitchen, adding a new room, or giving your home a modern, upscale look; turning towards personal loan for home renovation is a great idea. Home repairs can be both planned (those you always had on your wish list) or urgent that require your immediate attention.
The reason why a personal loan is more appropriate because you can get immediate funds when required and choose to repay in easy EMIs over your desired loan tenor. Applying for a personal loan for home renovation is quite simple and takes only a few minutes. Do it here.
Financing a Big-ticket Purchase
Most borrowers resort to applying for a personal loan to buy expensive consumer durables, gold jewellery, or other big-ticket purchases that are otherwise challenging to manage with regular income. This is logical too, as one doesn’t have to break open their savings or wait till the end of the month to fund those purchases with the monthly income.
Also, approval for a personal loan is fairly quick as most of the process is online. Once you furnish your income and other basic details, your credit score is evaluated. Based on that, your personal loan application is assessed. If you’ve a brilliant credit profile, you can also get an instant pre-qualified personal loan offer from us. Check out
A medical emergency comes knocking unannounced and when it does, it can take a toll on your monthly budget. Considering the mounting healthcare costs in India or even abroad, it’s a wise option to avail a personal loan for medical emergency. Whether it’s for cosmetic/dental work, for fertility treatment, or a sudden health trouble; one can effectively meet all medical costs with the help of a personal loan.
A personal loan can be a boon for those in need of immediate funds to meet an unexpected medical emergency. A personal loan is quick to apply and on approval, funds are disbursed almost instantly.
A wedding in the family calls for multiple miscellaneous expenses and all at the same time. Whether it’s for booking a venue, buying jewellery, and last minute shopping; a personal loan comes in handy to meet all these expenses effectively without breaking the bank.
The beauty of a personal loan is that one can get ample funds in no time and choose to pay the principal amount combined with interest in easy EMIs. You can choose the loan tenure that aligns with your budget seamlessly.
Availing a personal loan for financing higher studies is another common reason people turn to a personal loan. A personal loan for higher education provides complete financial support to help the borrower avail funds easily for further studies. Whether you want to get your child enrolled for higher studies or get yourself a degree; a personal loan for higher education is your best bet.
Apart from the above, people choose to apply for a personal loan for purposes such as travel, financing the purchase of a vehicle, and more. For reasons that require instant funds at nominal rate of interest, a personal loan is certainly a wise choice. Personal loan is a popular choice because it is easy to apply, doesn’t require any collateral, is quickly approved, and comes with a flexible repayment tenor.
If any of the reasons cited above or more have urged you to go for a personal loan, we’d love to hear from you!
Feel free to write to us at email@example.com or call us on 1800-200-9898 for any queries.