A personal loan can be taken for large expenses and something as small as education fee as well. It can be used to pay for any emergency needs such as home repair, medical treatment, travel, wedding, and a lot more. Being an unsecured form of borrowing, you can use the loan basically for just about any unexpected expenses or at time of a financial crunch.
Now, you can even apply for personal loans online and get the funds in a matter of just a few hours. Disbursal is quick and is done within 48 hours usually. Interest rate starts from 11%. Borrowing amount ranges from Rs. 1 lakh to Rs. 20 lakhs. Tenure is between 1 year and 5 years. You just have to be a salaried individual to avail the funds. Minimum income required will depend on the loan scheme considered, loan amount, tenure, and repayment capacity.
Below-mentioned are ways you can utilize a personal loan to meet immediate expenses.
- Big-Ticket Purchase
Do you want to purchase new appliances or furniture for your home or office? Do you want to install new machineries or upgrade the old ones? Do you want to shop essentials for a new apartment? Do you want to buy any asset? What do you do then to get funds for these expenses? It is simple, just select a personal loan and fulfil all these requirements in a jiffy.
- Debt Consolidation
If you have too many outstanding loans, which cost you a high interest payout, then you can opt for a lower interest personal loan, and pay for all the debts together. A debt consolidation can relieve you from financial stress. You will now have to manage repayment for only the new loan. It is easier to keep a track of and easier on pockets. By opting for a personal loan for debt consolidation, you can even reduce the overall costs of the loans.
- Business Use
If you are a salaried person but looking for funds to start a new business then you can take a personal loan. Business loans are available to established companies with vintage of at least 3 years. Thus for new establishments, personal loans are perfect solutions. You can utilize the funds as working capital, pay for the rental place, buy equipments, and many other business-related costs.
- Festival Time
During celebrations and festivals, people tend to expend a lot on gifts, renovations, and purchases. Sometimes, these expenses are unavoidable but arranging quick cash for these could be a stress. However, a personal loan can come to the rescue, as you can use the loan amount for festive expenses and purchases, even if it is a simple or expensive gift, donation, or just about anything.
- For a Dream Vacation
Have you been waiting to visit a destination? Have you been waiting to take a trip to somewhere, but take a step back just you do not have the necessary finances in place? Then forget your financial woes and live out your dream vacation today. Fund the same with a personal loan and experience the ultimate joy. Do not wait until retirement to fulfil your dreams, as you can enjoy when the time is right. You can easily repay the loan from your monthly income within 5 years or less.
There are many planned and unplanned expenses that a personal loan can help manage. But the above-mentioned ones are the most common and necessary ones. Make sure you have the necessary documents such as identity proof, residence proof, salary slip, bank statement, recent passport-sized photographs when you apply for the loan.