Though personal loans aren’t cheap but can be a viable option under several circumstances. But why personal loans are better than other loans? The answer is obvious, personal loans are not marked for specific purchase, it means that to take personal loans, borrower don’t have to mention any reason just like car loans or home loans. Personal loans can be used for any purpose. The other big advantage of having a persona loan is that they are easy and fast to attain unlike mortgage loans. At the time of emergency, one could get loans within 24 hours.
So, let’s checkout when taking personal loans are most appropriate.
- Consolidate Debt
The most basic use of personal loans is to consolidate all the debts. If you have one or more credit card, a home or car loan liabilities then it is better idea to combine all different loans into one loan with fixed interest rate, fixed EMI and fixed time tenure. This could provide you numerous benefits, such as the interest rate on personal loans is lower than credit card rates which can save yours money. Also, it can be managed well and you can easily restructure your finance.
- Pay Medical bills
Human body is the most complex machine to understand. It is very uncertain and problems can occur suddenly. If you or your family member is dealing with a severe disease and the treatment requires huge money, then personal loans are certainly the best option. As I said it can be avail within a day so in such situation take personal loans to pay off all your bills and have a good treatment.
- Finance a purchase
Everyone dream of having a luxury car or home of their own. But, this might cause a severe financial hit. It is better to take personal loans for a purchase and deal in direct cash rather than asking the seller to finance. It has a great advantage as with direct and complete cash payment, you may get some discount. Also, personal loans would have lower interest as rate charged by seller himself.
- Pay for wedding
Any large event like wedding needs huge money. There are several expenses from decoration, catering to shopping for groom and bride. So, would be groom or bride can take up wedding loans which is actually a personal loans and can spend them on wedding, shopping honeymoon etc.
- Cover your travelling expense
Taking a tour doesn’t require thousands or lakhs of rupees. But, a dream tour to your exotic places, may be outside of India could cause much to your pocket. It is a better option to take personal loans and have a tour with all the amenities for you and your family.
Personal loans can be very useful under some circumstances. Timely repayment of personal loans could improve your credit score immensely. Almost every bank offer good deal on personal loans whether it is Kotak Bank Personal loans or ICICI loans. Have a market research and compare all the banks before getting loan.