Personal loans are one of the most feasible loan options that can be availed in various circumstances. Normally, most loans are earmarked for specific purposes. For instance, you have home loans to purchase a house, car loans to purchase a car, and an education loan to pay for your college tuition.
However, you can use your personal loan for just about anything! At times, lenders may want to know the purpose of your borrowing the money, but as long as you utilize it for a legitimate purpose, you can do whatever you want with the loan amount.
Moreover, personal loans come with the added benefit of being ‘unsecured’. For instance, while taking a home loan, your house will act as collateral, while taking a vehicle loan, your vehicle will act as collateral, as these loans are ‘secured’ loans. However, personal loans are ‘unsecured’ loans and thus give you the benefit of not putting up any asset as collateral.
Here are a few circumstances where you can take personal loans:
- Consolidating your credit cards
If you have one or more than one credit card and if you have maxed out the credit limit, you can opt for an online personal loan to consolidate the repayment of all your credit card debt in one payment. What makes this more appealing is that the rate of interest paid in this scenario will be lesser than your credit card’s annual percentage rates.
- Improving your credit profile
There are 2 ways by which applying for a personal loan can help you improve your credit score. One, your PL will help create an ‘account mix’ if your credit report shows only credit card debt. Having various types of loans will help improve your credit score. Two, it will lessen the ratio of your credit utilization, which is, the credit used by you as opposed to your credit limit. Your score will be better if the credit used is less.
- Paying for a wedding
Weddings being an expensive affair usually cost a bomb! To help finance your big fat Indian wedding, you can opt for a personal loan to meet the wedding expenses. Applying for a personal loan is a quick and simple solution in these circumstances. An added bonus is the high loan amounts you can avail of, which help you cover any number of expenses. For instance, there are other platforms like Finserv MARKETS where you can apply for a personal loan for amounts up to ₹25 lakhs!
- Refinancing your education loans
As a student, if you are burdened by education loans, refinancing them may give you some relief. If you have an education loan with a higher rate of interest, you can take a personal loan that has lower interest rates to repay your debt faster.
- Financing travel
One of the best perks of a personal loan is that you can use it to finance any of your needs. And that includes travel! You can utilize the loan amount to pay for your expensive flight tickets to journey to your dream destination. You can even use your loan to fund your accommodation expenses, your meals, local travel, and more! Even your entertainment expenses can be covered by a personal loan.
- Financing medical emergencies
Medical emergencies may come up anytime. It may inevitably cross our paths and we may end up stuck with a foot-long medical bill wondering how to pay for these expenses. Usually, even when you have health insurance, all the charges may not end up being covered. A personal loan, in this case, can be the solution to your problem. With quick approvals, and even quicker disbursal available on personal loans, a personal loan can take care of any medical emergency that comes your way.
You can now opt for a personal loan by applying online on Finserv MARKETS. Bajaj Finserv Personal Loans on Finserv MARKETS have approval times of just 3 minutes and are disbursed into your account within 24 hours! Here, you get custom made loans with eye-catching offers to suit your needs. Once you comply with the eligibility criteria, you can apply for a personal loan with minimum documents required for personal loan. So apply for Bajaj Finserv Personal Loans on Finserv MARKETS now and make your dreams into reality!