Personal Loans in India

When Is Taking a Personal Loan a Good Decision?

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Unlike common financing options, a personal loan can be used for every (major or minor) expense. The best part: they come with low interest rates and flexible repayment terms making borrowing more affordable for the masses. But while the versatility of these loans can be deemed as benefits, they can easily lead you in a debt trap. Why? Because you might as well take a loan when you can’t afford to pay it off. The smarter way here would be to opt for the loan only when you genuinely need the funds. Additionally, you should avoid taking out a bigger ticket size if you already have plenty of fixed expenses. So, when should you ideally take a personal loan? Let’s find out!

Consolidating Debts

This is one of the most common reasons to take an instant personal loan. Many consumers use this loan for consolidating credit card debts and any other debt from high-interest loans.

Since the application can be made online, it’ll barely take you a few minutes to get started. All you need to do is shop for the best offer and get a loan that’s higher than your existing debts. Once approved, you can use it for paying off your current debts. 

With this method in place, you will now pay only once a month, as opposed to the multiple installments you previously paid. This will help streamline your budget while also offering you a solid timeline. This way, you have a clear idea about when you will finally close the loan. 

Emergency Renovations

If you have a leaking roof that’s making your life miserable, a personal loan might be your best option. Since this loan isn’t offered against a specific purpose, you can always get it to address your emergency home repairs. Note that overlooking the home emergency might exacerbate the situation, causing the costs to go up. So, address the situation immediately and use the funds from your loan to get your home fixed. 

Medical Bills

Very often, some specific medical expenses aren’t covered in your medical insurance. In situations like these, a personal loan can help you. Common medical expenses include dental surgeries, plastic surgeries, skin treatment options and more. So, if you are experiencing either of these issues, consider taking a personal loan to pay off your bills. 

Relocation Expenses

While switching cities may not seem like a big deal, it can end up complicating your finances quite soon. This is especially true for people moving to the bigger metro cities. Since these cities have hefty deposit charges for accommodation, you will need some extra funds to manage the monetary hassle. With personal loans, you can conveniently manage this issue without having to use your emergency funds or borrow money from friends. 

Bottom Line

Since you now have a better idea about using a personal loan, we are certain that you will make a more informed decision while choosing your ticket size and the repayment terms. When used the right way, personal loans will help solve your financial woes in instant!

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