Getting credit now is easier than ever before. With instant and pre-approved loan offers, you can borrow funds quickly from the comfort of your home. In fact, one of the most common credit options with a popular standing in the market is a personal loan.
Known for its versatility, a personal loan is often the go-to financing instrument for many Indians. Depending on the lender, you can enjoy:
● An ample sanction
● A flexible tenure
● Affordable rates
● Digital loan provisions
Moreover, accessing the loan is easy too. Even if you don’t have a pre-approved offer, you can still get approval within minutes. Best of all, you can use it without any restrictions as well. To know how to use and when a personal loan can come in handy, read on.
Debt Consolidation
Debt consolidation is a smart tactic you can rely on when looking to optimise credit management. Here, personal loans are a viable choice because you can use the funds without any restrictions, and this includes paying off existing high-interest credit.
Simply put, you can avail a sanction and pay off your existing short-term loans or credit cards right away. In doing so, you achieve two things:
1. You only have to make a single EMI payment in a month
2. You only have to pay the interest applicable on the personal loan
Moreover, when you consolidate your debt, you are effectively closing your other credit accounts. This can help boost your creditworthiness, and you can now focus on managing just one payment and clearing your debt comfortably.
Medical Emergency
Despite having a rainy-day fund and insurance, you are still likely to reach into your savings to handle the costs. Thankfully, an instant personal loan can help in such situations.
Lenders provide near-instant access to funds with a personal loan, which is a great advantage in medical situations. With the sanction, you can handle most medical expenses, ranging from operations to hospitalisation and more.
Rather than dipping into your savings, it can be smart to avail a short-term loan as per your eligibility and your needs. Do keep in mind that some lenders even offer flexible repayment options too. In some cases, you may get access to a sanction, wherein you only pay based on how much you utilise.
Wedding Costs
Indian weddings are generally a grand undertaking, and will require you to spend a lot. As a result, it is very likely that you will need extra funds to handle everything smoothly. This is where the specialised offerings like the personal loan for weddings can help.
Designed for this specific use, a personal loan for a wedding has many smart advantages. For one, it is easy to avail as most lenders will have digital provisions. Some may even offer instant approval and flexible tenure options, so that there is minimal stress involved.
Lastly, availing such a loan does not require any collateral either, and this simplifies loan processing. For a busy couple, lengthy loan processing protocols can cause unnecessary delays. But this isn’t the case with the personal loan for weddings, making it a smart choice.
Home Remodelling
As a homeowner, it comes as no surprise that your home will require some amount of work, every few years. Be it renovations or a remodel of your house, these undertakings can be expensive. Thankfully, with a personal loan, you don’t have to rely solely on your savings.
Thanks to the easy access to funds, you can renovate or remodel your home without any compromises. Moreover, you can avail a loan from a lender offering competitive rates, and keep the costs low as well.
Lastly, opting for a personal loan and using the sanction for home improvement can help you go through with bigger upgrades too. This is because you have the option to split the cost over a lengthy tenure and make payments affordably each month. As such, you do not have to worry about hefty one-time payments.
Higher Education
It is fairly common to get pre-approved loan offers for education, especially if you have maintained a healthy credit profile. These offers are worth considering simply because the cost of higher education has risen in the past few years. Courses abroad and within the country can cost several lakhs of rupees, making it difficult to afford.
Thankfully, with a personal loan, you can handle the tuition costs with relative ease. Some lenders even offer tenures up to 5 years, ensuring affordability all through. Best of all, availing a personal loan for education does not require you to meet a long list of eligibility terms.
This is usually the requirement when you opt for a traditional education loan from lenders. You may be asked to submit acceptance letters, and other supporting documents to avail funding.
Moreover, with traditional educational loans, you may not be allowed to use the funds for any other expenses other than to pay tuition fees.
However, with a personal loan for education, there are no such restrictions. You can use the funds, as needed, without any issues. This is particularly helpful if the plan is to pursue higher education overseas, as there are myriad other expenses that come into play.
These are only a few examples of how you can utilise your funds. With no end-use restrictions, you can use the loan amount as you need. Furthermore, you can enjoy umpteen pre-approved loan offers if you are an existing customer.
This expedites loan processing, and you can get funds credited to your bank account instantly. So, whether you need to go for a vacation or purchase a new appliance, personal loans can help you fulfil your requirements without any hassles.
However, you need to research the market thoroughly before selecting a lender. Compare interest rates, processing charges and other loan terms before you finalise a personal loan offer. This helps you manage your repayment easily without overburdening your finances.
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