8 Reasons To Take A Personal Loan

A personal loan is one of the most preferred loan types for diverse funding requirements.

8 Reasons To Take A Personal Loan

A personal loan is one of the most preferred loan types for diverse funding requirements. Features like fixed interest rate during loan duration, quick turnaround time, and being collateral-free make personal loans one of the most attractive options available.

Here are the top 8 reasons to take personal loans:

  • Debt consolidation: Many borrowers face a challenge in managing loans. Despite managing timely repayments, borrowers struggle to track EMI dates, the interest charged, tenure, and other details mentioned in the fine print. However, a personal loan helps in paying off these smaller loan amounts, which can help with debt consolidation, so you have a single view of all loan details.
  • Improving/creating credit history: Many individuals prefer to take a small personal loan to build or improve their credit history. However, for those just beginning their careers, there is usually no credit history, which can help fund big purchases like a car, home, etc. in future. Thus, by taking a small personal loan and repaying it on time, you can build a strong credit history that can be helpful in the future
  • Settling credit card loans: Personal loans are relatively inexpensive as compared to credit cards. With an annual interest rate of 36-40%, servicing credit card debt for a long period is a bad financial decision as compared to the 9-15% interest rate on personal loans. Thus, it is better to choose a personal loan to settle your credit card debt.
  • Major purchases: It is a fact hidden from nobody that some major purchases can strain our pockets and can hinder our further buying decisions. For example, buying a house is a big financial step and there are some additional purchases such as furniture that might take some time to fulfil. In order to avoid the delay, one can go for a personal loan and avoid exhausting all savings at once.
  • Medical emergencies: Your medical insurance policy will help you most of the time, but it does not provide complete protection against medical emergencies. This is particularly important in the case of lifesaving treatments, where one may have exhausted one’s medical insurance. In such scenarios, a personal loan from a lender with a quick turnaround time, can be very helpful and help you get timely financial assistance.
  • Wedding: Families usually save for weddings, but the corpus may not be enough, especially due to the rising inflation and modern lifestyle. A personal loan helps in meeting the shortfall, especially when a wedding is planned at very short notice.
  • Vacations: Instead of spending all your savings on that bucket list vacation, you can always take a personal loan and repay it by following a monthly repayment schedule. While short vacations can be funded by savings but once-in-a-lifetime vacations like a honeymoon or a luxury cruise may require a personal loan to be taken.
  • Appliance purchase: Amid the increasing cost of appliances in the past few years, it may not always be a viable option to fund these purchases with cash. However, a personal loan can help you purchase the consumer durable product needed at your place. You can easily take a personal loan and repay it over a fixed tenure, as per your choice.

As one of the most attractive funding options to fund diverse needs, a personal loan can help you in many life situations. Poonawalla Fincorp provides an online loan application process that saves a lot of time and is quick with approvals. The interest rate is competitive with a transparent fee and no hidden charges. Make the right choice and the best of the opportunity.

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