Are you wondering if a personal loan is the right move for your situation? Whether it’s a wedding in the family or a medical emergency, a personal loan can cover your needs.
Today, you can apply for a loan from the comfort of your home. Many lenders like Money View, Bajaj Finserv, and EarlySalary let their customers apply for a loan directly from their phones. All documents are approved online and the loan amount is disbursed in hours.
Taking a personal loan is not always recommended. Financial planners always advise their clients to steer clear of any loans. Sometimes, you may face situations where a loan amount can come in handy. We understand that borrowing from friends or relatives can be embarrassing when you are sure you can repay the debt. In such cases, a personal loan is your best option.
Usually, collateral is needed to pay the personal loan off. However, if you are a working employee with a steady income and you can provide proof for the same, we recommend you to go ahead with a fast, digital personal loan with a lower interest rate from top financial firms like Bajaj Finserv, Money View, or banks like HDFC, ICICI among others.
Utilize Your Personal Loan Amount in the Right Way
Well, in most cases, individuals opt for a personal loan when they have an existing debt to clear or when they are in financial trouble of any sort. If you have borrowed a certain sum for a certain interest rate, it’s better to pay off the current debt. How do you do that? Simple! Check if you are eligible for a personal loan from a trusted source for a lower rate of interest.
Some consider a personal loan as a backup in case something goes wrong. You cannot predict the future. And no one knows what’s going to happen. When you are eligible for personal loans for a lower interest rate, it’s okay to keep the principal amount as your backup or emergency fund.
Though this isn’t a recommended way of saving cash, it works out well for some. Discuss the foreclosure and part payment policies with your lender to avoid paying a huge sum of interest.
According to recent statistics, Indians applied for personal loans for various reasons, and the top five among them are medical emergencies, shopping, wedding, travel, and education. Yes, we live in a society and we have certain obligations. We may not have money handy always. Personal loans come to our rescue then.
- Medical emergencies don’t come with prior notice. If you don’t have ready cash, you’ll have to borrow money to provide yourself or your loved one with excellent medical care. Many lenders today accept and disburse loans digitally, and very few like Money View disburse loans in 24 hours too.
- A wedding is mostly a grand affair in India. You’ll remember the wedding day throughout your life. Everyone aims at having a perfect wedding, and personal loans help them achieve that dream.
- Shopping and travel may not be a necessity, but it is a luxury that relaxes one’s mind. With personal loans, you can quickly upgrade your lifestyle and enjoy a nice holiday. For a memorable holiday or a shopping experience, one might need a personal loan.
- If you have been dreaming about upskilling yourself, and you couldn’t do so because of financial constraints, a personal loan can be the key. Apply for online courses or a professional degree with the personal loan amount. This will automatically place you on a higher bar in the job market, and you’ll be able to pay off the loan much faster. A loan might be the only way for you to reach newer heights in your career.
Choosing the Right Personal Loan
When you have a decent CIBIL score, it’s easier to clear the loan eligibility criteria. You’ll probably have many options to choose from. You will have to make sure you choose a trusted lender and a feasible EMI option. Check if the interest rate offered isn’t very high. You can always approach the staff and openly discuss your options. Based on your current expenses and your monthly salary, you can choose the right EMI amount and a suitable tenure to clear your debt. Part-payment and foreclosure options help you save the interest amount. We recommend you to clear all your doubts regarding your part payment and foreclosure options.
You should know that many lenders discourage customers from using personal loans to buy gold or invest the amount in mutual funds. A personal loan is applied for specific needs or emergencies.
Personal loans, when used effectively, can be beneficial to you. Don’t consider it to be a debt! Personal loans are known to enrich one’s lifestyle. You can always connect with financial experts before making a decision.
Author Bio: Surya Patra is a qualified webmaster by profession and Marathon Runner/Cyclist by passion with more than 6+ years of expertise in the financial domain. Surya is also an entrepreneur, enthusiastic in storytelling, content writing, and digital marketing professional.
