Personal loans can come to your rescue when you need money in urgency. NBFCs have made them easily accessible these days, most importantly due to online processes that can be conducted completely from the comfort of your home. However, there is a difference between applying for a personal loan for a positive reason and a negative reason. Let us discuss a few positive and negative reasons so that you can differentiate between the two.
5 Positive Reasons to Apply for a Personal Loan
- To Pay Off Your Debt
A wise and sensible reason to apply for a personal loan is to pay off other debts that you are finding difficult to manage. You can take a personal loan to consolidate all your debts into one and clear them at once. Personal loans usually have a lower interest rate, which can help you save money on your interest outgo and improve your credit score with a regular payment.
- Medical Emergency
Medical emergencies are inevitable and may rob you off of your savings. If someone in your family has met an accident or been diagnosed with a deadly disease, a personal loan for medical emergency can make funds available to you to arrange the best treatment for them. You may get approval for a personal loan in as little as 15 minutes*, which means you can start the needed treatment without any delay.
Traveling to a dream destination, especially in a foreign country, can be an expensive affair. Not only do you need to book tickets and accommodation but there are several other kinds of expenses you have to deal with, viz. shopping, sightseeing, adventure activities, car hire, etc. If you are falling short of funds, then applying for a personal loan for travel can be the best idea.
If you are getting married, then you know how expensive things can get. Even a post-pandemic wedding with a limited number of guests can set you back with finances. Whether you want funds to pay for your venue, catering, photography, jewelry, wedding dress, gifts, invitations, or others, you can meet all those needs with a personal loan for wedding. You can always apply for a personal loan of up to ₹ 25 lakhs from Clix Capital and repay it in 12 to 48 months of the loan tenure.
- Home Renovation
Home renovation is another positive reason to apply for a personal loan. Whether you want to repaint your house, extend your balcony, or renovate your kitchen or bathroom, you can cover the related expenses with a personal loan for home renovation.
5 Negative Reasons to Apply for a Personal Loan
The above mentioned are some of the positive reasons to apply for a personal loan. However, there are some negative reasons too for which you must refrain from taking a loan. These include the following:
Gambling is an unstable area in which you put your hard-earned money into a lot of risks. It is illegal in many areas. Even if it is legal in your area, you should refrain from engaging in it. However, if you cannot resist your temptation, then gambling with the money you got from a personal loan can be devastating for your finances.
- Investment in the Stock Market
Investing your money in the stock market has a risk factor involved. Still, many people make a living with these investments. Even if you have been lucky enough to succeed with it, lenders will not give you a personal loan to put their money at risk. If you lose, your loan will be completely dissolved and you may not be able to pay your EMIs. So, using your personal loan to invest in the stock market is not a good idea.
- Starting a New Business
Starting up a business is a life-changing experience for all. However, you should avoid taking a personal loan to start a new business. This is because there is a lot of risk factor involved in starting a business, and if you fail, you may not be able to repay your personal loan EMIs. In such a situation, you may have to arrange finance from your savings or other sources of funds for the time being. Once your business is 3 years old, you can take a small business loan from Clix Capital to expand and grow.
- Illegal Activities
Lenders want to know the reason why you are applying for a personal loan. Once approved, you are free to use the personal loan amount the way you want. But you need to tell them the reason for which you are applying for a personal loan. If you are taking a personal loan with an immoral motive, you will probably get a straightforward loan rejection.
- Giving Loan to Someone Else
If someone is not eligible to take a personal loan, they may ask their friends or relatives to take a loan on their behalf. When such a person asks you to do that, you should never agree to it. Lenders must have rejected their loan application after scanning their credit history and repayment habits. If you apply for a personal loan and give the approved loan amount to them, they have high chances of defaulting and you may end up losing your money. Besides that, if the lender comes to find that out, they may take legal action against you.
So, whichever your reason is to apply for a personal loan, find out if it is a right or a wrong reason. If it is a right & positive one, Clix Capital is always there to help. We can offer personal loans of up to ₹ 25 lakhs, which you can conveniently use to solve your purpose and cover your expense.
You can also reach out to us at firstname.lastname@example.org or call us at 1800 200 9898