When should you opt for a personal loan?

We present situations in which a personal loan is the best solution.

The purpose of earning money is to make life easier and to enjoy it with your loved ones. But sometimes, unexpected incidents take place and you may not have enough money at hand. Or you might wish to buy an expensive item and find that your funds don’t cover the cost completely. At such times, you might need to gather the requisite money quickly – but from where?

Taking a personal loan solves the problem of raising money in a hurry. It is a loan offered by leading banks at competitive rates of interest for a tenure not exceeding 7 years in most cases.

Consider the situations in which you should opt for a personal loan:

* For a medical emergency. The things about emergencies is, they never come with an announcement or warning signs. A medical emergency is the worst – you or a family member may be involved in an accident, or get diagnosed with a life-threatening illness. You might run around trying to gather money from all your savings bank accounts to pay for the hospitalisation and treatment. But instead of emptying out your savings, it is much better to take a personal loan to pay for the emergency. In most cases, the personal loan request is approved within mere hours of applying for it, and the money is deposited in your bank account quite soon.

* To pay for a house or new office or even a car. The bank does not concern itself with why you need the loan in the first place. After checking your credit history, age and repayment ability, the loan request is approved quickly and you get the money. This means that you are free to use the money the way you wish. The personal loan is especially useful when you need to make a large down payment to buy something, such as a car or property. You might take a car or property loan, but you will not get the full LTV on the loan. Instead, you must dip into your savings bank account to make the down payment. Take a personal loan instead.

* To pay for a foreign trip. Visiting a foreign country may be on your bucket list, but you are blown away by the costs of travel and accommodation. Does this mean that you will never take the trip you’ve been dreaming of? Don’t put it off any longer – take a personal loan to fund it.

* To pay large, unavoidable expenses. You may have considerable savings stashed away in your bank account, but is it enough to cover really large expenses? Suppose you wish to pay for your child’s expensive higher education, or foot the bill for their wedding. These cost a lot of money that you might not have at your disposal upfront. But why worry when you can take a personal loan to meet the need?