Personal loans, owing to their features and benefits, are increasingly becoming popular amongst Indians. Quick financing without putting any asset at risk is the upper hand it carries when compared with other financing arrangements. Few situations where the personal loans act as a boon for the borrowers include:
1. Financial Emergencies
Uncertainties may knock on the door anytime. Whenever any emergency arises involving huge financial outflows, especially medical emergencies, personal loans may come to your rescue to meet the fund requirements. Instead of using multiple cards, a single loan may prove less cumbersome and more affordable as personal loan interest rates are comparatively lower.
2. Improve Credit Scores
Being unsecured, personal loans can prove to be great arrangements for building a good credit history. Usually, when a person starts with their career, they do not have much of the assets. Without parting with the ownership or creating a charge on your assets, personal loans can be used to build and improve your credit scores which may help you out in availing of future financing arrangements easily.
3. Personal Needs Like Travel, Home Furnishing, etc.
You can avail a personal loan for any purpose like education, home renovation, and even for travel! If you have already taken a home loan but are still running short of funds or want extra funds for furnishing your home, then you can avail of a personal loan that satisfies your purpose.
4. Debt Consolidation
If you have availed of multiple financing arrangements, you may sometimes feel overburdened due to constant multiple cash outflows. Keeping track of all the EMI repayments without missing a single one can become difficult at times. You can use a personal loan as a tool to consolidate your multiple financing arrangements into a single facility, thereby relieving you of the fear of missing out on any EMI, which may negatively affect your credit score. You will have to pay only a personal loan EMI.
Weddings are like a festival for Indians. Celebrations are huge as it is a once in a lifetime memory for us. Such a grand celebration may involve considerable outflow. Using personal loans, you can postpone this one-time cash outflow to future periods and repay it in instalments. Thus, you can have a stress-free enjoyment without compromising on your dreams.
The above situations perfectly demonstrate the benefits that personal loans provide to their consumers. Most financing facilities are for specific purposes, thereby diminishing the scope of financing for one’s personal needs. Cards may be used, but again it comes with an extra cost. Personal loans come with easy application and approval, affordable EMIs, and flexible tenure. Now you can also plan your monthly budget easily by knowing the amount of EMI using the personal loan EMI calculator before applying for a personal loan.