Top Reasons Why One Should Apply For A Personal Loan

Top Reasons Why One Should Apply For A Personal Loan

Anyone who knows the details and various benefits about personal loans can vouch for innumerable reasons to apply for it.  With many banks, NBFCs and Fintechs enabling offering personal loans at competitive rates, the market for a personal loan in Delhi is growing at a fast pace. 

Here are some key reasons why one should apply for a personal loan.

  • Consolidate the Debts: If you have several loans/debts with a varied rate of interests, then you can take a personal loan to consolidate the debts to end up paying one loan only. This way you can finish off your loans with a higher rate of interests. 
  • Pay Credit Card Dues: Credit card bills can be a burden if one is not able to pay them on time and as we keep approaching the limit, then one certainly goes into a bigger debt as the interest rate on credit card dues is extremely high which keeps on adding in the bill. Personal loans can be taken to ease the burden and pay credit card bills.
  • Medical Emergencies: Personal loans are approved instantly and thus one can meet the financial aid required during the medical emergencies. Personal Lona may be used to pay for medical bills, doctor’s fees, tests etc using the loan amount and also keep some money for an emergency. Medical insurances do not cover all the medical-related expenses and hence it becomes rather necessary to have some cash in hand.
  • Wedding Expenses: Personal loans come handy when one requires surplus funds during the planning and executing of wedding-related stuff. One can use the loan amount for shopping, paying for the venue and other related expenses.
  • Going on Dream Vacation: If you are longing a vacation and money is the constraint, then personal loans are your best bet as they provide with the funds which are required for vacation. One can now enjoy a holiday without breaking their savings and pay easily with low EMIs.
  • Home Improvement: Home improvement usually takes you down with an ample amount of money. One may tend to ignore it for some time, but once it becomes highly necessary, then it takes a lot of money to renovate and revamp one’s home. Personal loans can be used to make changes to your home.
  • Higher Education: Personal loans are very helpful in financing one’s or family’s education. The loan amount can be used to pay school/college fees,  buy study material, relocating charges etc. Personal loans ensure that money doesn’t become a constraint in education. They might be better than an education loan as it also encompasses tuition fees, hostel charges etc which the latter doesn’t pay for.
  • Improving Credit Score: Personal loans can help significantly in bettering your credit score. One may use a personal loan to combine multiple debts or to simply manage other financial urgencies.  Over a period of time, the credit score gets better as one remains consistent with the payments.
  • Starting a New Business: Personal loan lenders don’t ask the borrower on how they will use the loan amount. New start-ups and businesses that require lots of funds during the initial days of the businesses can use the loan amount to meet their everyday businesses financial requirements or as working capital.
  • Show Love for Gadget : Personal loans are used to meet the personal needs of the borrower. The loan amount can be used to buy the top mobile phone, gaming console or other gadgets, electronics or home utility items that one has been longing for. 

Before getting oneself a personal loan, it is important to choose the right lender. Loansjagat, which is a top fintech enabler allows the borrower to compare different lenders on account of their offerings in terms of interest rate, loan tenure, loan amount, EMI etc. Personal loans for salaried and businessmen are available with various lenders which can be availed to meet the personal needs. 

It is important to note that personal loans are offered by lenders on account of one’s credit score and repayment capacity. Lenders have predefined eligibility criteria which the borrower must abide by to get the personal loan application approved. Since these loans are unsecured in nature, they usually bear a higher rate of interest. A good credit score can help you negotiate for the best deal with the lender. Also comparing different lenders is a smart move before applying for a personal loan.