We often hear that loans are the solutions to meet financial emergencies in one’s life. The lending market is booming with lenders who are willing to offer loans to the borrowers. From car loans to home loans, one can get access to these loans provided you meet the eligibility criteria for the same. But, sometimes one needs that extra bout of financial help to meet personal requirements. During such an hour, the personal loan comes handy.
Personal loans as explained in the most simple language are the loans meant to meet the personal needs of the borrower. These short term loans are offered without the requirement of collateral and are thus very covetable. Unlike a car loan, education loan or a home loan where the borrower is liable to use the loan amount for the aforesaid purpose only, in a personal loan, the borrower can use the loan amount as per his discretion without any involvement of the lender.
The personal loan interest rate varies from lender to lender and is also subject to your credibility. Fintechs like LoansJagat offer an online personal loan in India. Their platform is excellent and presents a comparative offering of different lenders in terms of rate of interest, processing charges, loan tenure, loan amount, EMI, etc. It is advisable to compare different lenders before finalizing the one so as get the best deal.
Here are 5 key areas where you can use the personal loans.
- Financing your wedding
Weddings in India are huge and extravagant. And these ‘Big Fat Indian Weddings’ come with their share of exorbitant expenses. People save for financing the weddings of their family members for years and still feel the shortage of funds during the final hour. Personal loans come as saviors during that time. These loans are approved instantly and the borrower gets the sanctioned loan amount in his account with 3-4 days. One can use the loan amount to do the requisite shopping or pay for a venue and other knick-knacks. One can pay back the loan in easy installments.
- Financing education
One may wonder why to take a personal loan to finance one’s education when there is an education loan for the same. Well, education in today’s time is an expensive affair. It is a broader aspect that encompasses transportation, hostel and food charges, stationery and books, etc. While education loan only takes care of your tuition fees, the other overhead expenses need to be borne by the individual. To meet those expenses, personal loans are helpful as one can use the loan amount as per their will.
- Meeting medical emergencies
Medical emergencies are the most dreadful thing which not only takes one back physically and emotionally but also financially. Hospital bills, test charges, doctor’s fees, medicines, and other treatments are getting expensive by the day and to get the best of medical aid, one must have sufficient funds in hand. The billing meter begins the day one gets admitted to the hospital and it tends to skyrocket with each passing hour. Savings often run out during such emergencies and what comes as a great help is a personal loan that provides you with the requisite amount. The loan amount can be kept in the bank as well for post-treatment expenses. These are much better than life insurances which only takes care of a few aspects of the medical treatment.
- Financing a vacation
Who doesn’t like a vacation? But savings for the vacations can be time-consuming and could result in delaying your much-needed vacation. Personal loans help you to relax and rejuvenate by giving you the money you need to fund your holiday. A low rate of interest and instant approvals ensures you don’t have to wait for the vacation much longer.
- Financing Home improvement and renovation projects
Home loans make your home but you need funds to keep the house in the best of its shape. Personal loans can be used for prepping your home by making the requisite changes it needs. Home renovation projects are costly and hence personal loans are very helpful in giving you the financial aid required to improve your home.
Apart from these, one can use personal loans to consolidate their debts, use the loan amount as working capital in the business or to meet any other personal need.