A personal loan is an excellent alternative if you need a sudden infusion of funds to pay for necessary bills. Personal loans normally feature cheaper interest rates than other loan forms, especially credit cards. If you are unsure why you should apply for a personal loan, we have compiled a list of seven occasions in which doing so is a wise financial decision.

1. Debt Consolidation

If you are wondering why you should apply for a personal loan online, one of the most compelling reasons is to consolidate debt. When you choose to utilise the funds towards debt consolidation, you are combining all your outstanding liabilities into a single monthly payment. The consolidation of all your outstanding liabilities makes it convenient for you to determine a specific timeline for paying off your debts without being overburdened.

When you choose to do so, you are saving a significant amount towards interest payments on high-cost loans such as credit cards. 

2. Home Remodelling

If you are a homeowner or have recently relocated owing to a job, you must look to apply for a personal loan online to renovate your home or rental apartment. When you move into a rental apartment or your home demands restoration, you will need to spend a significant amount of money on plumbing, necessary repairs, painting, electrical wiring redoing, and other expenses. If you decide to replace your existing furniture, your costs will skyrocket.

A personal loan is a great option for homeowners who don’t have enough cash on hand or who don’t want to spend all of their savings on improving their home’s health.

3. Emergency Expenses

Emergency situations are unforeseen and unexpected. You never know when you or a loved one will be faced with a medical issue. Given the escalating cost of healthcare facilities, regardless of how much coverage you have through medical insurance, you may still require some funds. This is where you will feel the need to apply for a personal loan online. 

In addition to the medical emergency, personal loans can help you buy trendy gadgets, plan a birthday party for your child, and do a variety of other things. Many people consider this loan to be an emergency loan because of its many facets.

However, to make sure that you get this loan without any difficulty, keep an eye on the lender’s minimum personal loan eligibility criteria. 

4. Wedding Expenses

In India, a wedding is considered one of the most expensive events. You will need money for things like venue and catering reservations, jewellery purchases, the bride or groom’s wedding dress, and so on. You will also need to budget for pre-wedding expenses such as an engagement ceremony, a pre-wedding photoshoot, and so on.

So, if you want to make your pre-wedding rituals and wedding exactly the way that you always imagined, look out for a lender to apply for a personal loan online. A personal loan aids in settling all your wedding-related bills upfront, preventing you from having to dig into your emergency fund or hard-earned savings.

5. Vacation Expenses

Tell us a single person who despises taking a break from their hectic work schedule to spend time with friends or family on a long vacation. We all fantasise about staying on a luxurious cruise or preparing noodles at a high altitude. The only thing that prevents you from going on an exciting or extravagant trip is a lack of funds. But now, with easy personal loan eligibility, going on a lavish vacation is not a difficult decision to make. 

However, you should apply for a personal loan online only if you are willing to pay for your vacation over a long period of time.

6. Vehicle Financing

Yeah, vehicle financing is another heavy purchase that you can accomplish through this loan. Whether it is a brand new high-end sporty bike or a budgeted fuel economical car, you can easily drive them home by merely applying for a personal loan. Now, you might be wondering why a personal loan would be preferable to a two-wheeler or car loan. Right? The answer is quite simple. Unlike vehicle loans, you don’t have to worry about paying a down payment in a personal loan. 

You should opt for this loan if you don’t have funds to pay upfront or don’t want to hypothecate your vehicle with the lending institution. 

7. Child’s Higher Education 

In our country, most of the young talent compromise on their growth just because they or their parents don’t have enough funds to finance their education. The cost of doing an MBA or engineering from a reputable college cost a few lakhs. Whereas when it comes to MBBS, the amount shoots up to crores. However, when you apply for a personal loan online, you can easily cover the entire or a portion of your child’s higher education fees. 

Bottom Line

Once you have a thorough understanding of this loan, you will discover that it may be used for almost anything. To ensure a smooth application procedure, it is essential that you thoroughly understand the lender’s personal loan eligibility criteria before you apply for a personal loan online.

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