The term ‘personal loan’ is often (and incorrectly) associated with financial crisis. Of course, it is true that a personal loan can help you out when you have an urgent need for funds, but it also can be quite beneficial in different everyday situations that can change your life.
Whether it is giving your child the best education opportunity or getting medical aid for you or your family or fulfilling your desire to travel, a personal loan can be your best friend.
Here are five situations in which personal loans can and should be used.
A dream wedding
Weddings are a one-time affair, and we want to make the absolute most of them. Most Indian weddings are spread over a few days and can cost some serious money. You may account and save for the significant expenses but might miss out on accounting for the smaller ones. In such situations, you can avail a personal loan to pay for all these expenses. This way you can have a stress-free wedding and focus on your happy day instead of the finances.
A loan is calculated depending on the borrower’s income and capacity to repay it. So long as you fulfil specific criteria, it is possible to avail loans up to Rs. 25 lakhs. However, it is prudent that you don’t go overboard while spending for a wedding. Spend how much you can afford to repay comfortably. Don’t let the EMIs become a burden when you are starting your new life.
Pursue your wanderlust
In today’s Instagram-filled world, millennials are being bitten by the travel bug! If a life-altering European holiday or a fun family vacation to Disneyland has been on your bucket list, you can check the box with the help of a personal loan. Non-Banking Financial Companies (NFBCs) such as Tata Capital has made travelling to your dream destination smoothly. How, you ask? It offers interest-free loans for up to INR 15 lakh! Now nothing should stop you from writing your travel diaries!
There is no need for security or guarantor for Tata Capital’s travel loan. All you have to do is repay the loan in eight EMIs. Adding a co-applicant can increase your loan eligibility. You can take this loan for domestic or international travel.
Furthering your career with relevant courses
Regardless of how well your job is going, there is always something new you can learn or do to boost your set of skills. Very often, to do this, you might have to enrol in a specialised course that could cost a lot of money. If you haven’t saved up for this or don’t have the funds to make it happen, you can always turn to a personal loan. This loan can be disbursed to you immediately and can be used for a variety of purposes. Using it to further your career eventually means establishing better financial stability.
Health comes first
Medical assistance should not be delayed for any reason. You can avail a personal loan for contingency situations related to health or urgent medical needs. Whether it is a surgical procedure, therapy, or other health concerns, a personal loan can be your saviour. The best part is that you can use it for all kinds of expenses – hospitalisation bills, prescription bills, operation, post-surgery care, etc.
Setting up a beautiful home
Home is where the heart is and having a beautiful home is a life goal for many. Whether you want to give your home a makeover this Diwali or want to set up a new work-from-home station, a personal loan can be your answer. You can also get a loan to buy modern amenities such as a high definition TV, refrigerator, etc.
You are eligible for such a loan if you are a salaried person with a minimum salary of INR 20,000 or self-employed with a minimum income of INR 2 lakh per annum. Tata Capital offers interest rates as low as 11.49% for personal loans.
There is no doubting that a personal loan is a great tool to help you carry out all kinds of financial responsibilities. It is a long-term commitment that should be taken seriously. Gauge your ability to repay the loan easily and ensure you never miss a payment for a smooth experience.