As a general human tendency, we tend to plan almost everything. This stands especially true when it comes to our finances. However, if unknown expenses crop up, dipping into your savings is not something you would always be comfortable with. This is when you can exercise the option of availing a personal loan.
These personal loans are easy to obtain and are far cheaper than credit card loans as the personal loan interest rates are lower and hassle-free. You should fulfil personal loan eligibility conditions and have all your documents in place.
Now, when can you avail a personal loan? We have put together the following five scenarios that may put you in a position when a personal loan may become imperative.
Rebalancing your Loans
It is possible that you might have taken multiple secured loans and you end up using your credit card for some purchases. If you have been making only minimum payment to keep your credit card account active, you will realize that you will have to pay very high-interest rate (as high as 3% per month) on your overdue payments. This should not be acceptable to you and therefore you can conveniently take a personal loan to clear your credit card outstanding and reduce your burden as the personal loan interest rates are far lesser than the credit card interest rates.
Overshooting a Planned Expenditure
There are some instances where no matter how carefully or prudently you plan, you will always fall prey to your emotions and want to leave no stone unturned to make you or someone close to you happy. A few such instances are wedding and holiday plans. Since a personal loan is easily available personal loan eligibility conditions are liberal, it is but natural that you would want to use it. This is yet another case where you can fall back upon a personal loan.
To make up a Shortfall
Imagine you have taken up a home loan, a car loan or an education loan and find that for some reason you have fallen short of funds to meet the requirements. For instance, tuition fees have been increased and your education loan does not cover the increase or you included an additional utility for your home and the home loan does not cover it or the car prices increased and your car loan does not cover the increase. In such cases too, you are well within your comfort zone to avail a personal loan and make good the shortfall.
Many times, unforeseen circumstances push you to avail a personal loan to make a payment that is time sensitive. These could be statutory payments or dues under dispute which needs to be paid by a certain date after agreeing to settle. Further, there is a purchase you may want to make which is a necessity such as a new appliance for your home. In such cases, it is advisable to go for a personal loan.
However carefully you plan your finances there comes a time when you need money in a hurry to take care of some emergency or the other. These could be as varied as overdue payments, medical emergencies, payment for a school trip or some urgent repairs to your home. Typically, these issues crop up sporadically and randomly that your savings alone cannot help you tide over. This is one of the situations when you can safely think of availing a personal loan.
Of course, besides the above, there may be other compelling reasons why you should take a personal loan. All that we are saying is be practical and prudent before you apply for a personal loan. We suggest that you evaluate the need to take that personal loan and take into consideration all angles including the personal loan eligibility conditions and personal loan interest rates. Once you are convinced that you need that personal loan you can get in touch with Tata Capital who can offer you good terms for the personal loan you want to avail.