Published on Apr 24, 2020Updated on Sept 20, 2023
Personal loans are unsecured loans offered by financial institutions that help you to finance your requirements and deal with the uncertainties of life. Some of the best reasons for a personal loan involve expenses such as medical emergency, education, marriage etc.
The number of persons applying for personal loans has increased sharply in the past decade. Between 2015 and 2018, unsecured loans have witnessed a growth of approximately four times. This growth is attributed to several reasons like lower interest rates, quicker and technology-based disbursements etc.
Here are 5 reasons for taking a personal loan. Do note that while there can be many reasons, we have mentioned here some of the situations wherein a personal loan could be the best solution.
One of the best reasons to get a personal loan is for debt consolidation. Managing multiple loans and credit card dues from several lenders can prove to be challenging. Missing on payments can result in negatively impacting your credit score. Availing a personal loan in such a situation can save you from financial distress. All you require to do is consolidate different payments into one debt with the help of a loan. This method offers several benefits that include enjoying an overall lower rate of interest which can help in reducing the timeframe required to pay-off your loan. Follow these steps to make sure you can avail of a loan to consolidate your debts:
You can avail of the funds required to make your wedding a day to remember. The wedding loan can be used to fund any aspect of the wedding right from the dress, dining, photography etc. This will help in ensuring that your wedding expenses do not dent your savings.
All you require to do is fill-up the form and submit the documents required. You can opt for a tenure that best suits your requirements. The funds will be transferred to you within 24 hours of your loan getting approved.
You can apply for a home loan in renovating your home space. This can help in improving the value of the home without purchasing a new one. Borrowing to renovate your home is an ideal option even for persons who intend to sell their home soon. However, home renovations or additions might be pricey or might exceed the limit on your credit card. A personal loan might be the right solution for your requirements. You can avail of a personal loan of approximately 90 per cent of the cost of the renovations.
Must Read: Give Your Home a Makeover with a Personal Loan
The deteriorating quality of life due to lifestyle factors might result in people having to resort to medical procedures from time to time. Not all medical procedures are covered by insurance policies. Select insurance policies exclude certain diseases and treatments that you might require to undergo. Clauses in medical policies might even require you to pay a certain amount out of pocket. A personal loan for a medical emergency is one of the best solutions in such situations. The loan amount can be used to pay for all types of medical expenses and therapies that you might have to opt for.
Our streamlined procedures ensure that the money is credited to your account within less than 24 hours of loan approval, and at a high priority so that you get the funds you need at the earliest.
Each business has its unique needs. Business loans are ideal for salaried individuals looking at starting a new business as well as established businesspersons to manage immediate business requirements.
Financial institutions haven’t laid down restrictions on the reasons for which you could opt for a personal loan, provided it is for a legitimate purpose. However, it is a financial responsibility which affects your credit score and hence should be repaid on time. We advise you to evaluate your requirements and familiarize yourself with the rules & regulations before applying for a loan.
Was this helpful?
*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.