Reasons To Apply For Personal Loans - Personal Loan Blog - Tata Capital

Personal Loan - 5 Reasons to Apply

Feb 28, 2017

Whether you are looking to pay off an existing debt or to fund any emergency, opting for a personal loan is a feasible option. You may avail of a loan for various purposes like funding your dream car purchase or going on an international holiday with family and friends.

Personal loans are therefore also known as multi-purpose loans as they may be used for a variety of reasons. The lender does not question the intent of the borrower.

Following are the five reasons why you should consider applying for such a loan.

1. To consolidate debt

In case you have numerous outstanding debts, such as credit card bills, car loans, home loans, and others, you may consolidate all the loans into one single loan. The main objective of doing so is to save money, through a lower interest rate. Different loans have varied interest rates. By consolidating a loan, you may land the lowest interest rate and thereby make significant savings.

2. To make home improvements

You may wish to renovate your home but may not have the required funds to do so. The cost of home improvement is high, owing to the ever-increasing cost of kitchen remodeling, painting, and furniture, besides others. You may, therefore, apply for a personal loan in order to refurbish your home without facing any financial constraints.

3. To pay for medical expenses

Quite often individuals do not undergo a medical procedure as they are not able to afford it. However, you may avail of a loan to fund any unforeseen medical emergency. By doing so, you do not have to worry about arranging a huge amount of cash at the time of emergency.

4. To make high-end purchases

Buying a high-end gadget or a vehicle is a dream for many. However, not everyone is able to afford such expensive items. Borrowing a loan helps to buy such items as the amount has to be repaid over a period of time. It is a budget-friendly option as it helps in making purchases through regular Equated Monthly Installments (EMIs).

5. To fund a wedding

The costs associated with a marriage ceremony are huge. There are numerous expenses, such as venue, catering, decoration, photography, clothing, jewelry, besides many others. A loan gives you the flexibility to pay all these expenses without depleting your savings.

Availing of a personal loan is a financially viable option. It helps you fulfill your dreams and responsibilities diligently. It is, however, necessary to ensure that you will be able to make EMI payments on time. If you are able to make timely repayments, such multi-purpose loans prove to be a quick, efficient, and hassle-free solution to your financial woes.