5 uses of a personal loan

We list the 5 important uses of a personal loan in daily life.

Life is a series of ups and downs, and when your chips are down, you must be willing to face the situation with equanimity. However, facing certain situations – paying for a medical procedure, making a down payment on a car, paying for your child’s wedding, etc. – requires a handy sum of money at hand. You can get it by applying for a personal loan.

Consider the 5 reasons to take a personal loan:

1 Pay for your child’s higher education.

Your child might wish to go abroad and study in a foreign university. This has been a long cherished dream, and it is up to you to make that dream come true. But sometimes, you can fall short of the required funds to help your child realise this ambition. In such a case, you can apply for a personal loan and meet the shortfall. The money is disbursed fairly quickly when you apply for the personal loan online.

2 Consolidate other debts.

Many of us have several large and small debts to our name. You might have borrowed loans to buy a car, an expensive phone or electronic appliance, or even to send your children to the best educational institutions. Instead of servicing so many loans simultaneously, you can take a personal loan and repay all the other ones. Consolidating all your debts under one personal loan helps you manage your finances better.

3 Renovate or repair the home.

As much as we all love to live in clean, beautifully-furnished homes, house maintenance and long term renovation can become quite expensive. You might not have the necessary funds at hand to buy new furniture, get a painting job, re-lay the flooring and plumbing services, put in an extension to a room, etc. At such a time, applying for a personal loan can help you get the money for the renovation.

4 Pay for an emergency.

The best thing about applying for personal loans online is that the loan request is approved fairly quickly and there is no need to carry out any paperwork for the same. This is tremendously helpful when you need money for an urgent medical procedure, or another need of a personal nature. The loan money may be disbursed directly to your account in just a few hours.

5 Improve your credit score.

As strange as it sounds, you can actually apply for a personal loan to improve your credit score. This is how it works: when you take a loan, the lending institution keeps track of your repayment behaviour. If there are no EMI defaults and if you repay the loan early, then you get more credit points – this automatically improves your credit score, which helps you in getting other loans in the future.

Leading banks like IDFC Bank offer quick approval and disbursal of personal loans, with online processes and zero paperwork. Tying up with a leading bank helps you save interest money and also gives you access to easy repayment options.

About This Author

Shaheen Shaikh http://www.adrclinic.co.uk Joined: April 29th, 2018