Personal loans, primarily because of their versatile functionality, have come to be of the more valuable financial products in one’s arsenal. The best part about taking out a personal loan is the simple eligibility criteria that it entails - all you need to have is a good credit score, and be ready with paperwork.
That being said, why would you want to take out a personal loan in the first place? That is exactly what the remainder of the article focuses on - some of the most common reasons to apply for a personal loan in India:
1. To remodel your home
Home is where the heart is; this maxim can never fall out of grace. Therefore, investing in home decor becomes important, should you want to spruce up your living space. Taking out a personal loan that is subject to favorable terms and conditions is one of the easier ways you can remodel your house.
2. To finance a long-awaited family trip
The breakneck speed of our lives in today’s times makes it imperative that we finally go on the annual family vacay that had been shelved for some time now. A short-term personal loan is a very convenient way you can enjoy some quality time off with your family, without breaking the bank or hurting your wallet.
3. To fund an urgent medical obligation
Life is certainly a roller-coaster ride, with medical emergencies that can sneak up on you when you least expect them to. However, if you spend some time shopping around, you’d find a personal loan to be the best fit for such an obligation.
A personal loan, in such a situation, can tide you over a medical urgency, by taking care of any unplanned expenditure and other routine care. Easy approval and quick disbursal of funds are add-ons that help you tackle unforeseen obligations such as these.
4. To consolidate debts
Debt consolidation essentially means taking out a new loan in order to consolidate and eventually pay off a number of other debts and liabilities (usually unsecured ones).
With many liabilities to pay off, it is possible that you muddle up the exact dates for repayment and end up defaulting when the time comes. Consolidating all your debts into a single personal loan is therefore convenient, considering that you would the have to think about just a single loan, and only one repayment date.
5. To pay off your credit card dues
This is perhaps one of the most important upsides to taking out a personal loan. Credit cards usually attach a high rate of interest, whereas a personal loan is subject to comparatively lower interest rates. This way, you can save big on your hard-earned money.
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This content has been created in association with YONO SBI.