5 Good Reasons To Apply For A Personal Loan

By Author: Vijesh Sinha
Total Articles: 3

One of the common forms of financial loan that people go for is personal loans. People take personal loans for a host of reasons: marriage, education of children, family vacation, home-renovation etc. to mention a few. Thus, they act as multi-purpose loans. If you too are thinking about taking a personal loan, the following are five good reasons to go for the same:
• Consolidation of debt
It is possible that you already have several outstanding debts like car loans, education loans, home loans, credit card bill etc. Keeping a tab on the repayment of all your investments can be tedious.
Moreover, you would need to spend a hefty amount of money to repay the loan. If you take new personal credit, you can opt for loan consolidation, which is an amalgamation of all your previous debt. When you consolidate debts, your personal loan interest drops to almost 12 per cent, and you get an extended tenure as well.

• Personal loans are unsecured loans
It means you do not have to keep any collateral such as property or gold while applying for the same. Lenders issue such a mortgage on the creditworthiness of the borrower. The only requirement for taking a personal loan is a high credit rating on the borrower’s part.

• Personal loans for medical emergency
Life never goes according to our plans. We never wish for medical emergencies to cross our path but they are inevitable. In case you do not have a health insurance policy in your name, the best alternative to meet the crisis is to apply for personal loan. The money you borrow from the bank can be used for medical surgery, hospital bills and healthcare facilities.

• Funds your higher education
Opting for higher education through various courses is expensive, with quality education coming at a premium rate it is beyond the many people. Banks offer personal loans to provide funds for your higher education. The amount of loan and the interest rate may vary from lender to lender.

• Personal purchase
You can use the money from a personal loan to finance anything that you want, unlike education or a car loan. However, before you apply for personal loan, make sure that you know what you want the money for and determine how much you need. Do not go overboard when applying for the loan and only take as much as you would be comfortable paying back.
You can opt for a personal loan that offers you an extended period to repay the same. This will keep you at ease and limit the chances of defaulting on the payments.

About the author:

Vijesh Sinha is a financial expert by profession. In the spare time, he loves to write about financial products. Through his work, he has provided information on the five reasons to apply for a personal loan.