Personal Loan – A Single Loan with Multiple Uses
Personal loan, also referred as one of the best unsecured loans, comes across as a viable proposition in diverse situations. The beauty of a personal loan is that it is not earmarked for a specific purpose like a home loan or a business loan is. This feature of a personal loan makes it the most preferred option when it comes to available options for financial assistance.
Whether it is for consolidating existing debt, funding a college education, wedding expenses or travel expenses, or addressing a financial/medical emergency; a personal loan comes with a bevy of offerings.
A personal loan can be availed without collateral, at an affordable rate of interest, is easy and quick to apply and usually, if things are in order, the loan amount is disbursed in less than 24 hours.
When are Personal Loans a Good Idea?
There are some situations when availing a personal loan is a smart and the right move. Here are 5 such situations where a personal loan is your best bet:
For Existing Debt Consolidation
If you’ve multiple credit cards that are nearing max credit limits, you can consider making a lumpsum payment to consolidate the balance into one payment to avoid paying extraneous amount of interest as you try to balance the cards out. This need can be addressed by availing a personal loan from any bank or NBFC.
The reason why this proposition makes for a smart move is because the interest rates charged on credit cards are higher but a personal loan can be availed at an affordable rate of interest. This will save you substantial amount on interest and allied charges. Paying off your existing debt will also lower your credit utilization ratio and will eventually increase your credit score.
To Finance a Big-Ticket Purchase
If you’re looking to buy an expensive consumer durable item, getting a personal loan for the purpose will make a better deal. If you opt for paying through your pool of savings, this will leave you cash-strapped for emergencies.
Paying for a pricey purchase via credit card is also not a wise choice because of the exorbitant rate of interest charged on a card.
Availing a personal loan and paying the seller in cash in this case is a viable option.
To Pay for a Wedding
We all know how exhausting organizing a wedding can be – both mentally and financially. A wedding qualifies as a large event that requires a steady flow of funds throughout the event and after. However, if there is a wedding you have to take care of, you can avail a personal loan for the purpose and cater to all large expenses at one go. Paying multiple vendors, arranging amount for the venue, finance the purchase of consumer durable items, trousseau, and even buying gold jewellery.
If you prefer to plan and finance a wedding while availing a personal loan, this will leave you with adequate savings for emergencies and will help you save considerable amount on the interest rate on credit cards.
For Home Renovation/Expansion
If updating your home décor or adding extra rooms to your home has been on your mind since forever, now is the right time to do it. A personal loan for home renovation is the most viable option of financial assistance to get the home makeover of your dreams .
One of the reasons why this makes for a smart move is because updating your home décor or expanding it only adds value to the property. Also, it is a longer process to get a home loan for renovation/expansion, which is why, a personal loan is the best and smartest option.
For Financing Education
If you aspire to go for a vocational degree while working or you wish to finance your child’s higher education at his dream college; you can easily avail a personal loan for education. Availing a personal loan for education is easy, quick, and requires least amount of documentation. Moreover, the rate of interest is affordable enough to not burn a hole in your pocket.
To Fund a Luxury Vacation
If you’ve been dreaming to take your spouse on a luxury vacation; don’t think twice and avail a personal loan for travel to make your dream come true. Make your dream vacation a picture-perfect one without having to worry about added costs on hotel, dining, sightseeing, shopping, and working towards every bit to make it a memorable one .
To Finance Medical Emergencies
Life is full of uncertainty and you never know when an emergency may strike. If you’re faced with a medical emergency availing a personal loan for medical emergency is one of the most preferred options to take care of the cost of hospitalization and the ongoing treatment.
Availing a personal loan is obviously a smart move as it is quick to apply and if your credit profile meets the lender’s eligibility criteria, you can get the loan amount disbursed to your bank account in just 15 minutes. *
Now that you’ve a fair idea of when availing a personal loan can be a smart move, make sure you choose to spend the loan amount wisely. It is always advisable to select the NBFC that is well known, offers personal loan at the best rate of interest, and delivers a smooth customer support experience. We, at Clix Capital, take pride in offering just that.
We are one of the leading NBFCs with a varied base of financial assistance to offer at easy and customizable repayment options.
Feel free to write to us at email@example.com or call us on 1800-200-9898 for any queries.