Even though the pandemic has adversely affected the economy, the demand for personal loans is considerably rising. According to a report by the Times of India in April 2020, personal loans, especially the unsecured segment, have shown a rise of a 20% year on year basis.
The reason behind the demand for personal loans
The critical attribute of a personal loan is that you can decide on how to use it at your discretion. This feature makes a personal loan a very attractive option.
You can get instant personal loan online up to an amount of 25 lakhs with a tenure ranging from 1 year to 5 years are available for you. You can decide on your loan requirement and choose a convenient tenor.
Some of the common uses of a personal loan in India are listed below.
- You can use a personal loan to cover all other outstanding loans and move them to a single installment payment. An overall interest would be cheaper than having multiple interest rates and loans. Needless to say, it would not just be cost-effective but also convenient.
- Certain businesses are unable to source working capital loans due to multiple reasons. Difficult documentation, low valuation, low creditworthiness, etc. makes it difficult for them to source a loan. This results in a gap in their working cycle, leaving them vulnerable to the volatile and competitive markets.
- You can use personal loans for family-owned/ personal business to even help them consolidate their working cycle gaps.
- Medical exigencies are unexpected and can be huge. They require immediate finances and hospitals are being run like businesses. Urgent medical assistance requiring multi-specialty hospitals or qualified doctors becomes a strain on one’s budget. In cases such as these, even if you or your loved ones have insurance cover, it does not cover all the expenses.
- All medical insurances come with rider clauses, and a majority of medical insurance owners would tell you in emergency cases, they have had to pay a certain some from their pocket.
- For such emergency scenarios or in the absence of an insurance cover, personal loans come to your rescue. As they are disbursed quickly and even online, there will be no delay in receiving funds.
- In India, weddings are lavish and huge. Hence it is no surprise that the borrowers use more than 60% of their personal loans availed for their or a close relative’s wedding.
- Whether it be a destination wedding or the online weddings of recent times, marriages warrant numerous expenses.
- Right from entertaining the guests to buying jewellery and dresses, hiring a great photographer, managing the various functions, décor, and even planning your dream honeymoon trip – personal loan at competitive interests have you covered.
- Your education will build your future. Hence one needs to invest and accordingly plan for higher studies. Lack of funds should not become a hindrance while pursuing your dream.
- There are various competent courses abroad that unfortunately are not available in our country. Further, the opportunities, exposure, and learnings are far greater.
- Personal loans can be used in case you or any of your family members wish to study an expensive and sought-after course. All related expenditures such as application fees, books, hostel, travel, tuition fees, etc can also be funded.
Other Major and Miscellaneous Expenses
- The personal loan gives you full freedom to utilize your personal loan as per your needs. It can be used for any other large or capital expenditure that you may incur.
- These may be like a one-time liability, and your savings might not be enough to cover these. Further, it is also advisable that for such expenses, one should not liquidate their savings but rather borrow funds and spread the financial burden over time with monthly instalments.
- Interiors for your home, make-overs by painting your walls, buying high-end furniture, modular fittings for your kitchens, buying your favourite car or bike, for Traveling to exotic places – your instant personal loans are your best bet.
In conclusion, personal loans are a great way to manage any financial liability you may face. Lending institutions make availing of these loans simple, easy, and convenient. Based on your credit records and score, they offer competitive and economical interest rates. You can even check your eligibility on the lender site using their customer-friendly personal loan eligibility calculator. You can avail of personal loans almost instantly with a click of a button on the website or through an app.