Modern lending institutions are customer-centric. Earlier, people had to wait in long queues to submit their loan application forms. The review and disbursement process was tedious and time-consuming. You had to plan things ahead of time if you were planning to take a loan. However, today, things are different. Instant personal loans online are more accessible, and loan providers are more cordial. Friends and relatives might turn down your request for financial aid, but lending institutions won’t as long as you meet their eligibility criteria.
Read on to learn more about personal loans and what you can do with them.
How do personal loans work?
Personal loans are instalment credit that allows borrowers to pay for a wide range of expenses. It is an unsecured credit product issued by lending institutions to help people meet their financial obligations. The lender offering the loan charges interest on the borrowed capital. Borrowers have to choose a repayment period based on which their EMI is decided. The amount is repaid in monthly instalments throughout the loan. One can also choose to prepay the outstanding balance and save money on account of interest charges. Personal loans don’t have any spending restrictions, making them a versatile loan product. It can be taken to finance everything from wedding expenses to foreign travel.
When to take a personal loan?
There are many scenarios for which personal loans are an ideal choice. However, it’s important to note that these loans carry a higher interest rate than housing or property loans. It’s also crucial to note that other loans demand collateral from borrowers, unlike personal loans. Also, there are restrictions imposed on how you can spend the amount. Personal loans are ideal when you don’t want the burden of depositing collateral or spending restrictions.
Let’s dive into some common scenarios where people prefer a personal loan to break an FD or dipping into their savings.
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Medical emergencies
The first and most common case when people take a personal loan is during medical emergencies. These emergencies can come knocking at any time. Chronic diseases can be expensive to treat and require extra attention and care. Taking a personal loan is a great way to deal with medical emergencies. An instant personal loan online can cater to urgent situations as these loans are disbursed in less than 24 hours. Using a personal loan, you can pay for various medical expenses like diagnosis, treatment, hospitalisation, etc.
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Wedding expenses
Indian weddings are mostly grand affairs that require a considerable amount of money. Most people plan their wedding months in advance and usually arrange for the amount. However, many times, the expenses exceed the planned budget. One can opt for an instant personal loan online to manage those additional expenses. Personal loans can also be taken to finance the entire wedding ceremony. You can use the personal loan amount to pay for catering, venue, a pre-wedding shoot, or the designer lehenga.
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Home Renovation
Renovation can change the look and feel of a house. It’s a great way to transform your place. However, home renovation expenses can put a strain on your wallet, depending on the type of renovation opted for. A personal loan from reputed lending institutions like Fullerton India can help you finance home renovation activities easily. You can avail of a loan amount of up to INR 25,00,000 and meet needs ranging from changing the upholstery, painting the walls, or replacing a broken piece of furniture.
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Education
Higher education is expensive today. However, getting higher education from reputed institutions can improve your job prospects. Most people who want better opportunities opt for higher education, like a Master’s program from a renowned institution. The tuition fees and other costs related to education can be met with a personal loan.
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Travel
Most millennials and Gen Z people are enthusiastic about traveling. While traveling will expand the mind and give you a lifetime of memories, traveling costs can become burdensome if not planned. Taking a personal loan from the best loan app can help. Doing so after judging your capacity to repay the loan will enable you to travel to exotic locations.
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