A personal loan is an unsecured loan that may be used for several purposes like huge purchases, emergency expenditures, debt consolidation and others.These loans are generally repaid in the form of monthly EMIs during the 2 – 6-year time period. Mentioned here are a few of the important reasons for taking up a personal loan –
Clear credit card dues
Credit card dues may be really hard on your pocket.With interest rates of up to 52 per cent p.a., it may be a costly debt to carry,and if repayment is made soon your score may be impacted negatively.As an outcome, availing of a personal loan with an annual rate ranging between 10 and 24 per cent p.a. is a way better option. Here, you are able to save money on interest while simply maintaining your credit past record and profile. To better decide, which personal loan offer to select, you can use the online Bank of Baroda Personal Loan EMI calculator or calculator from any other bank lender.
Fund a new venture
Insufficient funds can put a complete full stop to your dream of beginning a new business. Personal loans, on the contrary, can help you to obtain funds to simply finance your business. Moreover, you can place an application for a business loan. However, in this case, you must show your tax-linked documents and financial history, which is not possible for a new business. As an outcome, a personal loan here would be the best practical choice to opt for because it is way simpler to take up.
Ameliorating your credit history
When it comes to credit cards and loans, your credit score is crucial. If you do not hold a strong credit score, a personal loan might be able to help you here. Most of you apply for a small personal loan so as to ameliorate your credit profile and score by repaying the loan by the due date to establish a strong repayment history, which shows the lender your credibility. Repaying the loan on time eventually raise your credit score, permitting you to place an application for bigger loan proceeds in the upcoming times.
Medical exigencies
Deterioration of quality of life or health may propel you to use the medical process on such an occasion. Insurance policies may not cover all the healthcare processes.Specific treatments and diseases that you might require to undergo are not covered by all insurance. Medical policy clauses might also need you to pay a specific amount from your pocket. In such scenarios, a personal loan for medical exigency is one of the best routes to opt for.The loan proceeds can be utilized to cover any healthcare expenditures or therapies that you might need.Note that few banks, like Bank of Baroda, provide BOB digital personal loan which is disbursed instantly as per your requirement.You can opt for such instant digital personal loans from any other lender as well to cover up your instant healthcare exigencies.
Go on vacation
You must have heard that ‘life isn’t a destination; it is a beautiful journey, which you must experience. Travelling to beautiful new locations may be refreshing to your soul and break your monotonous routine. It is always a good decision to make frequent savings towards your vacation goals, where you can aim at gathering a good amount for the vacation trip.
However, in between, making advance bookings for expenditures like hotels, flights, etc., can assist you in gaining considerable price benefits, thus reducing your overall travel budget. You can opt for a personal loan for your vacation journey to make such advance payments and repay the loan with your regular savings later.
Wedding expenditures
Marriage is planned in heaven but celebrated well on Earth.However, we all tend to squander a lot on festivities. With an intention to celebrate in the best way possible, marriage expenditure can often go off the budget. In place of witnessing financial pressure and stress, you can avail of a personal loan for your wedding expenditures and then systematically repay your loan in the form of EMIs.
Purchasing a new vehicle
A personal loan is one of the options for funding your dream bike or car purchase. Also, it is one of the best ways to repay the vehicle if you are not buying the same from the manufacturer directly. For instance, if you are looking to purchase a used vehicle from another consumer, a personal loan may permit you to do this without depleting your savings bank account balance.
Funding big-ticket buys
You can get a personal loan to finance your big ticket buys like electronic gadgets and appliances, for instance, refrigerators, laptops, washing machines, etc. It is a good choice as compared to going to big ticket spends in a month.A personal loan permits you to defer big expenditures,over future months as it is to be paid back in EMIs in the future.
Higher education
While you might have prioritized your child’s aspirations and are making constant savings for it, the increasing education expenses might cause a few deficits towards such a financial goal. You can opt for a personal loan to bridge the deficit and allow you, the child, to get admission in the desired stream and college, not permitting any financial constraints and pressure to alter such financial goals.
Home Renovation
You often spend a considerable amount of time with your family at home. Going for the home renovation is a necessity, but relatively higher expenditures might make you push this down to the priority list. Here’s where you must opt for a personal loan.
Conclusion
A personal loan assists you in turning your desire into reality,where home renovation expenditures can be financed through it, which you can repay in the form of instalments.A personal loan can endow you with a free hand when it comes to arranging finances instantly.As the proceeds used in the personal loan are not attached to any designated purpose, irrespective of what your financial situation is this loan can be used for any purpose except for a speculative purpose.
