Apersonal loanis a multi-purpose loan that comes with unrestricted end-use. An instant money loanis often seen as a reliable debt instrument to meet medical expenses. It is also widely used to fulfil your aspirational needs like buying fancy gadgets, home appliances and more. But with a few smart financial tips you can use a personal loan in many more ways.
There are many factors that makes these instant loans suitable for multi-purpose use. Whether you need a big-ticket loan for wedding expenses and home renovation or a small-ticket loan to buy a new mobile, a personal loan can serve you right. In addition to that, these loans are offered without collateral. That means you can avail quick loan without pledging your valuable assets. The eligibility requirements as well as the documentation process for these loans are also kept simple.
An instant money loan is a quick and easy solution for all your money requirements. Read on to discover some of the lesser-known ways to use a personal loan for your benefit –
What can you do with a personal loan?
Personal loans are highly flexible and adaptable. You canyou a personal loan for any purpose. The lender do not seek justification or proof regarding the use of your loan amount. Once the laon is approved the loan amount is disbursed directly into your account and you can use the money for any purpose.
Here are 7 of the most typical reasons to avail a quick loan –
1. Pay off your debt with higher interest
You can avail an instant money loanto pay off your existing debts. This is particularly helpful if you are serving multiple loans that you availed at different times. Paying multiple EMIs is not only cumbersome, but it is also costly. There is a higher risk of missing out on one of your EMIs.
Thus, you can use a personal loan to consolidate all your ongoing debts. This can also include your credit card bills. If you do not pay your credit card bills in full and before the due date, then the interest charged on your credit card is very high. In such case, you can use a quick loan to pay off your credit card bill.
2. Meeting a medical emergency
A quick loan can come in handy when you are in need of urgent cash to pay for your medical bills. Even if you have a health insurance policy, it does not cover the entire cost that comes with a health emergency. For example, the cost of travel for treatment, the cost of accompliant, food bills and adjuvalent therapies are not covered by your insurance policy.
In addition to this, dental treatment, cosmetic surgeries and alternative treatment costs are also not covered by insurance. There are also various other conditions that you need to meet. But with a personal loan you can easily take care of these expenses.
3. Financing home renovation
An instant money loancomes in handy when you are planning to renovate your home. Since, it comes with unrestricted end use, you can use the loan amount to carry out repair work, upgrade the furnishing, buy new home appliances, or change the entire interior of your home. Renovating your home from time to time, improves your quality of life and helps in maintaining high value of your property.
In addition to this, a quick loan can also come in handy for emergency home repair work. In case of unfortunate events like natural calamities or fire breakouts, you can use an instant money loan to start the repair work. The processing speed of a personal loan is much faster than settling an insurance claim or liquidating your investments.
4. Paying for a Major Life Event
Many people turn to personal loan for financing a major life event. A significant milestone like your wedding or your parent’s 50thanniversary party can be easily financed using a personal loan. These loans are quick, convenient and highly affordable. You can simply download a loan app and apply for a loan in a few taps.
A personal loan can also come in handy for financing an international or national trip. You can use the loan amount to book your flight tickets, hotel accomodations, food and more. A quick loan also comes to your aid when you face a cash crunch during the trip. The loan is processed and disbursed into your account within 48 hours of your application.
5. Boost Your Credit Score
A personal loan is an ideal debt instrument for you if you have never availed a loan before. It can help you build your credit profile by paying the loan EMI on time. This also improves your eligibility for high value loans like a home loan or a car loan.
If you have a history of missing payments on other obligations, taking out a personal loan and repaying it promptly could help raise your credit score. Including a personal loan in your credit mix could be beneficial if your credit report primarily shows credit card debt. A positive factor for your score is having a variety of loans and demonstrating your ability to manage them.
6. Taking care of expenses that are out of budget
A personal loan also comes in handy when you have to take care of expenses that do not fit into your monthly budget. Whether it is financing a much needed trip or paying for your car repair, supporting your child’s educational cost or infusing funds into your business, a personal loan can serve you right.
You can avail quick loan just by downloading the best loan app on your mobile. The application process is simple and the eligibility criteria can be easily met. A personal loan gives you the flexibility to meet these out of budget expenses and repay the loan in easy monthly instalments.
7. Staring your own business
The start-up frenzy and its success stories has ignited a passion among many. People today are more open to the idea of starting their own business and making smart investments. If you have a good start-up idea and need a lum-sum amount to kick-start your new venture, then a personal loan can help.
However, to be able to avail this loan, you must meet the eligibility criteria. You should have a stable income of at least Rs. 15,000 and should be working in a reputed firm. In case, you do not qualify for these conditions then you can ask your spouse or parents to sign as a co-applicant. But make sure that they fulfil the eligibility criteria set by the lender. Also, note that it could be a risky affair to borrow money for investment purposes.
8. Final Thoughts
A personal loan can be used for fulling your financial obligations as well as your aspirations. It comes in handy in situations when you find yourself in need of cash. However, it is important to analyse your needs critically and avail a personal loan only after much consideration. You must check the interest burden on the loan, your affordability of the loan and your repayment strategy before availing the loan.