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Tata Capital > Blog > Personal Use Loan > Does the Purpose of Personal Loan Matter for Approval of the Loan?

Personal Use Loan

Does the Purpose of Personal Loan Matter for Approval of the Loan?

Does the Purpose of Personal Loan Matter for Approval of the Loan?

One of the most significant advantages of applying for a personal loan is that you don't need to reveal the purpose behind taking one. Sure, your lending institution, in casual conversation, might ask what you intend to do with the money you wish to borrow. Or, you might end up sharing why you require quick personal finance.

But, typically, revealing the reason behind applying for personal finance is not an eligibility criterion for filing the application or even receiving the approval. In short, credible lenders understand, ‘it’s personal!’ 

Is opting for personal finance a good idea?

Sadly, there’s no yes or no answer to this question. However, if you run into sudden financial trouble, opting for personal finance is a quick and secure way to get rid of it. Here are some of the usual purposes of personal loan.

1. Medical emergencies

Medical bills, especially during the pandemic, can rack up unexpectedly. And, you must clear them in time to continue your or your loved one’s treatment. But should you run out of funds, given that quality medical treatment does not come cheap, opting for personal credit or loan is the right thing to do, as opposed to breaking into your hard-earned savings.

Anyway, personal loan interest rates are at an all-time low these days, which is all the more reason to go for a loan. And let your savings and investments earn the returns they are compounding.

2. Children’s higher education

Every parent wants to provide the best possible education for their child or children. And, sometimes, the funds you've saved for their education can end up falling short. In such a case, you can supplement their studies by opting for personal finance. Doing this ensures you don't delay your child's tuition fee, or worse, have them drop out a semester.

Additional Read - Quick Guide about Personal Loan Disbursement

3. Big-ticket purchases

Want to purchase a Recreational Vehicle (RV)? Maybe the latest gym equipment? Perhaps you want to take a world tour? Whatever your end goal may be, personal finance can help you fund all big-ticket purchases seamlessly. And, the best part is that you repay them in monthly instalments!  

4. Funding major milestones

Whether you want to relocate to a new city or fund your child's grand wedding, personal finance can help you celebrate all such milestones in style. What's more, institutions like Tata Capital extend relaxed personal loan eligibility criteria, which increases your chances of approval.   

Additional Read - Steps to Get a Personal Loan with Bad Credit

Before you go

Lastly, know that personal credit or loan is unsecured finance, meaning you don't need to pledge any collateral or guarantee while applying for one. All you need is minimal documentation and a decent CIBIL score.

Want to apply for personal finance at affordable interest rates? Partner with Tata Capital! We offer personal finance at competitive ROIs with negotiable repayment tenures. If you want to know the kind of EMIs you’ll be paying with us, use our personal loan EMI calculator available on our website.

So, cover your expenses without telling us your end goal. Start your application today!

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