Personal loans are unsecured loans given without any collateral and can be used for many purposes. They give an individual a free hand in times of emergencies as they provide access to instant cash, without any limitations on how to use the said amount. In the last few years, many people have turned to personal loans instead of borrowing from family and friends as well. Particularly, when people don’t have sufficient funds in their savings, they take personal loans to tide over financially difficult times.
When you avail a personal loan, in addition to giving you instant cash, there are also several benefits which come with it. One of the main advantages of such a loan is that you would not have to submit collateral while availing it. Also, while unsecured personal loans have a higher rate of interest as compared to secured loans, they are still lower than what private moneylenders charge. However, the best part is that unlike secured home loans, car loans, or education loans, personal loans can be used for a variety of purposes.
Reasons Why You Should Apply For a Personal Loan
- Debt Consolidation
- Medical Emergencies
- Credit Score Improvement
- Funding your Holiday
- Expanding your Business
- Home Renovation
- Higher Education
- Buying Electronics or Gadgets
- Paying Credit Card Bills
- Moving and Relocating
- Funding a Big-Ticket Purchase
Let’s take a look at some of the reasons and situations wherein you can consider applying for a personal loan.
Personal Loan for Debt Consolidation
When you are in a situation where you are paying and managing EMIs of several small loans together, the total amount of all the EMIs which you would be paying per month is likely to be really high. What’s more, the process of managing numerous EMIs and keeping track of remaining principal amounts is not easy. In such a situation, taking a personal loan is an excellent way to consolidate your debt and pay a single rate of interest on the same with a fixed EMI every month. Not only will this streamline your monthly finances, but also bring a sense of stability and predictability to your budget.
Personal Loan for Medical Emergencies
There can be several situations in your life where you are dealing with a major health concern of yours or your loved ones. In such circumstances, funds are obviously needed, even if you have the best insurance coverage. If in case you do not have enough savings to rely on, applying for a personal loan can give you access to the required amount in a short time. Many fin-tech companies, like PaySense, offer personal loans instantly, in a completely digital and paperless process. Usually, these loans amounts are transferred to your account within a short span of time, ranging from a few hours to 3-4 days.
Personal Loan for Credit Score Improvement
The credit score of an individual is calculated on the basis of promptness in repayment of loan repayments and credit card repayment. When you take a personal loan of small amount and return it within the permitted time frame, you can boost your credit score as it will improve your credit history and improve your creditworthiness. This also increases the chances of you applying for a loan of a higher amount in the future.
Personal Loan for Funding your Holiday
The everyday monotony of life can really get to us and impact our stress levels and productivity. This is why taking a short break from your daily routine becomes a necessity. Travelling or going on a vacation with your loved ones can bring an immense sense of joy and rejuvenation to your life. However, planning a holiday isn’t cheap, and you might not have enough funds to take a break that you’ve been pining for. You can consider taking a personal loan to fund your dream holiday.
Check Out: 20 Best Instant Personal Loan Apps in India
Personal Loan for Expanding your Business
If you’ve been thinking of expanding your business, then you’re in luck. Many organizations, like PaySense, offer small business loans as personal loans to help small and medium entrepreneurs in expanding their operations. For instance, if you earn a minimum of Rs. 15, 000 per month from your existing business, you can apply for a personal loan to expand your business without any collateral. What’s more, you will not be bound by any restrictions as to how you spend the amount!
Personal Loan for Home Renovation
Availing a personal loan is pretty standard when you need to undertake home repairs or want to change the architecture of your house. If there’s an important family event on the horizon or if you simply want to repaint the house before the festival season, you can simply take a personal loan without any collateral. This way, you can repay the amount in small and affordable EMIs as opposed to spending a considerable amount in one go.
Personal Loan for Higher Education
Traditional education loans come with several conditions and restrictions. For example, some loans can only be availed only if you get admission in a specific category of colleges. Furthermore, they have strict repayment conditions, and it takes years for students to become debt-free. In such cases, a personal loan is always a better option since there are no prerequisites for availing such a loan. The short loan tenure and the affordable interest rate are the other benefits of availing a personal loan when you need funds to pursue further studies.
Personal Loan for Buying Electronics or Gadgets
The latest gadgets and models of electronic products usually have a steep price tag. Most of the times, we do not have the funds to purchase them. Even if you do have sufficient funds, spending the entire money to get just one product may make your monthly finances suffer. A personal loan can come to the rescue in such situations. With the help of personal loans, you can buy any latest smartphone or laptop without burdening your monthly expenses as you will be able to spread the high amount across several months in small and affordable EMIs.
Personal Loan for a Wedding
In India, a big wedding that invites all distant friends and family is pretty typical. Usually, people don’t hold back from spending on their wedding or the weddings of their children, and often, even borrow money to fund their dream wedding. There are several unforeseen expenses at a wedding as well. Borrowing from private moneylenders or relatives isn’t a viable option in today’s day and age as there are ample ways to borrow from official sources. PaySense also offers loans up to Rs. 5 lakhs without any collateral or securities to help take care of your wedding expenses.
Personal Loan for Paying Credit Card Bills
Since personal loans have interest rates that are lower than that of credit cards, the total interest amount also reduces, as does the tenure. Thus, if you are unable to pay off your credit card dues for a reason, consider taking a personal loan to pay it in full. This way, you wouldn’t incur the high rate of interest or pay the penalties which the credit card companies charge when you do not pay off your debts in time.
Personal Loan for Moving and Relocating
The expenses incurred while relocating to a new place are sky-high these days. The costs of packers and movers can leave you short of funds to settle in your new home if you aren’t careful. In a scenario wherein you do not have sufficient money, and your relocation also cannot be postponed, you will surely be in a pickle. This is where the personal loan can come to great use. The funds required for all the processes of the move, including shifting household belongings, transporting, buying new furniture, etc., can be easily fulfilled by availing a personal loan. Since there is no limitation on how you choose to spend the amount, you can utilise it as you please.
Personal Loan for Funding a Big-Ticket Purchase
You might be in need of a new refrigerator, washing machine, laptop, or television at any time. Similarly, you might need to buy a new car or two-wheeler, even if your pocket doesn’t allow it. All these expenses aren’t exactly cheap and require a sufficient amount of funds. If you do not have enough money to spare right away, take a personal loan of the needed amount and repay it in small EMIs to manage the impact of buying a big-ticket purchase better.
Instead of taking home loans, car loans and other types of loans from banks, many people are turning to personal loans as they are offered at an affordable interest rate, the loan tenure is shorter, no collateral is needed and the paperwork is minimal, making them one of the most convenient ways to access funds immediately. The best part is that there are no restrictions on how you choose to spend the loan amount. Personal loans are slowly becoming popular in India due to the increasing availability and increased financial awareness among the masses.
You too can apply for an instant personal loan from PaySense to take care of any emergency. Here’s what we offer:
- Wedding Loan
- Medical Emergency Loan
- Travel & Holiday Loan
- New Car Loan
- Used Car Loan
- Two Wheeler Loan
- Laptop Loan
- Mobile Phone Loan
- Camera Loan
- Television Loan
- Washing Machine Loan
- Small Business Loans for Women
- Low Salary Loan
- Short-Term Loan
All at affordable interest rates without collateral or securities. The entire loan application process can be done through the PaySense instant personal loan mobile app – this means that you can get a personal loan without even stepping outside your home!
Shivam is a passionate content writer with Masters in journalism. A mutiple-award-winning writer, he brings over a decade of experience as a BFSI writer. In fact, he himself is known in his circle for sound financial advice. A writer by day and a reader by night, Shivam enjoys researching and writing on various financial topics, including credit, stock market, crypto, taxes etc. When he is not spending his time penning down an informative article or opinion, he can be found playing with his kids or collecting stamps.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs