Compared to other loans and advances, banks and NBFCs give borrowers full freedom of using a Personal Loan.
Loan against property is the secured alternative for Personal Loans that also come with affordable interest rates and longer tenures. However, if the customer defaults, the lender will have the right to seize the collateral.
Moreover, the interest paid with loans of longer duration becomes higher compared to Personal Loans. Hence, Personal Loans are one of the most affordable and flexible financing options for Indians.
Lending institutions offer a lot of flexibility to use Personal Loans. Here are some of the best uses of Personal Loans:
1. Buying/constructing/renovating a house
Although one can avail a home loan in this case, the purpose of it will be restricted. One can only use home loans for all things related to their house like buying, renovating, constructing, reconstructing, and others.
With a Personal Loan, however, they can use it for not only all the situations mentioned above, but for others purposes as well.
A Personal Loan EMI calculator, in this case, can help customers to calculate their EMIs and efficiently manage their repayment.
2. Funding education
Sending a child for better and higher education is often a big financial burden for parents. If the institute is overseas, then the expenses exceed.
So, many parents apply for Personal Loan to make their sons/daughters receive the best education they deserve.
3. Paying for wedding
Everybody desires a grand wedding as it is the most special moment in one’s life. For making this wish come true, people avail Personal Loan and fulfil their dream of having a memorable wedding.
4. Consolidating Debts
Taking one debt for repaying others may seem foolish, but it can help immensely in such cases. For businesses especially, clearing all outstanding debts will make sure the owner and the suppliers remain under contract.
Failing to do so may force the supplier to end all terms with the business, which can further cause complications for the latter.
Hence, business owners take advantage of competitive Personal Loan interest rates to consolidate their debts.
5. Taking your dream vacation
Using an EMI calculator, customers can quickly calculate their loan repayment and apply for one to fulfil their travel plans. You may have been putting off your travel plans for a lack of funds for a long time. A Personal Loan for travel helps you finally go on your dream vacation.
6. Buy expensive consumer goods
Purchasing a 50-inch LED TV, a side-by-side refrigerator, jewellery or any other expensive consumer good usually remain in the wish list of many Indians. You can plan these purchases well with the help of a Personal Loan and repay with ease.
Individuals need to fulfil certain Personal Loan eligibility criteria to avail a loan. Hence, be sure of your purpose and the situation before applying for a Personal Loan.