At times, we face sudden or unexpected financial emergencies. The emergencies can be for a wedding or some other personal purpose. This is where a personal loan comes into play. These are the loans borrowed from the bank for personal purposes. Personal loans take into account an individual’s debts, previous borrowings, etc. before sanctioning the loan. As the name suggests, personal loans can be utilised for any activities where there is a personal interest. They are beneficial financial tools which come to the rescue when a bulk amount of money is needed. As a result, apply personal loan online today and we assure you it will be the best decision.
Here is a list of six reasons to take a personal loan
Exigent cash requirement
Personal loans can be used for meeting immediate or urgent cash requirements. These requirements can be in the form of payment of bills or medical costs or for some other personal requirements. These days loan providers basically the bank provide loans in online mode. This helps individuals to check their approval of loans at any time. Loans can be sanctioned on the same day or in a few working days. Such loans can be used for following purchases.
- Payment of bills which are past the due date
- Medical expenses
- Funeral ritual expenses
- Sudden vehicle repairment
Personal loans are much better than payday loans. Although payday loans are convenient to get, it charges high interest and can be harmful if not paid within the stipulated time. However, personal loans do not involve such risks and are low-interest loans as compared to payday loans.
Credit card bill payment
Credit cards can be used for shopping, bill or fees payment, etc. However, if the credit card is used extravagantly, the amount to be repaid can be burdensome. Credit card loans charge a very high interest rate annually. Therefore, personal loans with a comparatively low interest rate can be used for credit card payment.
Home makeover and repairment
A house needs maintenance and up-gradation. This can cost a lot of money. Personal loans can be helpful in situations like these. Basically, equity home loans are used for home repairment. However, it uses home as a security in case of failure of payments. Personal loans do not use the home for security. Also, personal loans are approved easily and quickly as compared to equity loans.
At times, we may have to move from our state or district to some other state or district. This shifting from one state to another costs money. Shifting costs involve the cost of packers and movers, transportation costs etc. Personal loans can be used to cover such costs. It can also help in payment of security deposit for an apartment, purchasing furniture, etc.
Typically, for purchasing a vehicle, automobile loans are used. It charges a lower interest than personal loans. However, it uses the home as security. Here, personal loans can be used. It is free of such collaterals, but it comes with higher interest than automobile loans.
Personal loans can be used to cover wedding expenses. It can be used for advance booking of wedding venue, bridal suits or dresses, decorations, photography etc. It can also be used prior to a wedding like for payment of engagement rings. Engagement rings can be costly, depending on the metal type. So, personal loans can be used to cover such costs.
Undoubtedly, personal loans are very helpful in times of exigency. However, an individual must think if he/she can afford repayments of such loans monthly. It is advised not to take personal loans if one cannot afford it. Also, personal loans should not be used for non-urgent activities like for vacations.
Personal loans are useful financial tools which can be used for a variety of purposes as listed above. But before applying, one must have a genuine need for such loans.