When to Consider Taking a Personal Loan: A Comprehensive Guide | Personal Loan Stories

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A personal loan is a prudent financial instrument to fund anything. Whether it is a vacation trip, a child’s education fee, a wedding, a new vehicle or medical expenditures, a personal loan can rescue you from any financial crisis. This is one of the simplest loans you can avail, where zero security is required and not a lot of questions are asked. So, you can hit on the personal loan apply button and use the proceeds for multiple purposes without being liable to the lender where you use the proceeds.

You as a borrower can avail a personal loan to mitigate an array of requirements, given its versatile nature. However, despite this, many are unsure as to where personal loan proceeds can be used. Here are a few circumstances when you can consider hitting on the personal loan apply online.

For funding a vacation trip

Taking a vacation assists you to de-stress from your everyday hustle. However, many tend to end up postponing their dream vacation trip that they wished for owing to their budget restrictions. Here’s where a personal loan can help you. A personal loan is not just good for mitigating your exigency expenditures but can even be used for meeting your luxury needs.

For consolidating your debt

If you have multiple outstanding dues and find it tough to manage and track the same. Availing a personal loan would be a great option in such a case to reduce multiple loan burdens. Another situation where you can opt for a personal loan is when you have an existing loan at a higher interest rate. By availing a lower personal loan interest rate, you can lower your interest burden on your existing loan.

For funding your dream wedding

Weddings are a costly affair. Given the fact that a marriage is generally a one-time affair, the cost involved in hosting it is massive. To fund this cost, you can opt for a personal loan. A personal loan offers a simple and quick solution for a stress-free and smooth wedding experience. Lenders are willing to offer a personal loan based on your income and the highest loan proceeds available can be up to Rs 40 lakh.Existing Debt

- For funding exigency expenditures

A medical exigency can show up at any time and make a dent in your finances. The medical expenses incurred are high and hospitals generally ask for an upfront payment. Your medical insurance may absorb the impact up to an extent but may not cover additional expenses. Here, a personal loan may be a prudent choice. With instant disbursal, a personal loan endows you access to funds when you are in immediate need of financial help.

A personal loan comes across as a lifesaver in many scenarios. Owing to the quick disbursal feature, you can get out of the monetary bind using a personal loan. However, before you zero in on any personal loan deal, ensure to review it to understand if the offered personal loan interest rate and other terms and conditions are as per your requirement. Once you have selected the lender, use an online personal loan EMI calculator to compute personal loan EMI, rate of interest and repayment tenure as per your repayment capacity.

Frequently Asked Questions

1. When can you consider opting for a personal loan?

A personal loan is a security-free loan that may be used for any requirement. So, you can consider opting for a personal loan if you want to purchase furniture, go on a trip abroad, purchase a costly gift, etc. You may even opt for a personal loan to meet your instant fund requirements like medical exigencies, fund monetary mismatches for your child’s education or marriage, immediate home renovation, etc. However, once you have selected the lender, ensure to take the help of an online personal loan EMI calculator to compute your personal loan EMI, preferred rate of interest and repayment tenure.

2. When is it a prudent time to avail a personal loan?

A prudent time to avail a personal loan is when you require funds immediately or to finance your personal monetary mismatches. To avail a personal loan, you must consider comparing different lenders based on parameters like interest rate, processing fees, etc. Once you have selected a suitable personal loan lender, ensure to use an online personal loan EMI calculator to calculate the personal loan EMI as per your repayment capacity.

3. Is taking a personal loan a good idea?

Availing a personal loan is a good idea if you earn a stable income and have a strong credit score because in such a case, you will be offered a lower personal loan interest rate. In contrast, if you have an unstable job and a poor credit score, the rate of interest offered to you may be comparatively higher.

Also, it is not recommended to place an application for a personal loan every time you encounter an expense. Opt for a personal loan only when you need the finances during an emergency or personal crisis, and when you hold the potential to repay the loan on time.