You must have dreams of having an international trip or planning a destination wedding, but your financial situation is holding you back. One way to plan for the funds is to opt for a personal loan. Taking a personal loan makes sense rather than compromising on them.
Personal loans are a viable option for just about anything. In comparison to credit cards, interest rates on personal loans are generally lower if you have a good credit score. Also, most personal loans are unsecured, meaning they do not require collateral.
Here are five situations in which a personal loan can be of great help:
To Pay For Wedding Expenses
A wedding is a lofty aspiration that everybody wants to fulfill. You may also want a fancy wedding to make it a memorable one. As you know, a wedding is a once in a lifetime experience but can cost you a fortune. If you are struggling financially to make this big day special, a personal loan can save you. It can help you pay for expenses including catering, photography, wedding dress or even for your honeymoon.
Personal loans have fixed interest rates, which means the EMI you need to pay won’t increase over the loan tenure. There are personal loan EMI calculator online to ascertain your monthly installments and plan the repayment better.
Repayment Of Existing Debts
If you have existing loans borrowed at high-interest rates, it can be challenging to pay them back when most of your payment goes into interest. Taking a personal loan is one way to consolidate debt into a single payment. Ideally, a personal loan has a lower interest rate than your existing loan and allows you to pay off the debt faster.
Consolidating your current debt with a personal loan can also simplify your monthly finances and reduce financial stress. After all, keeping track of many pending bills and payments can be stressful. Getting a personal loan can help you be more organized and reduce the risk of degrading your credit score.
Setting Up A Business
You might want to quit your monotonous job and venture into a business you are passionate about for a long time. Starting a business can be life-changing. It is an expensive affair, as well. Depending on the type of business, you might require suitable equipment, office space and working capital. You can make all this financing easier by taking up a personal loan.
The application process for a personal loan is usually easier and faster than a small business loan.
You only live once. What better way to live than exploring the places you want to visit?
If you have a dream destination in mind but do not have enough savings, a personal loan can take your worries away. International trips can be pricey, and not everyone can afford that. Personal loans are a great way to help you plan your dream vacation with your family and friends.
There can be times when a loan is the only option that can save you from going bankrupt. Emergencies, be it medical or financial, can knock on your door anytime. You may not have sufficient emergency funds to support them. A personal loan can help you deal with such situations. On the other hand, filing for bankruptcy may be the most direct way to getting a fresh start and rebuilding your credit, in which case you shouldn’t discard this option so quickly.
To analyze your repayment capacity, you can use an online EMI calculator. Reputable banks, such as Axis Bank, offer personal loans at competitive interest rates.
So, do not compromise on your personal goals and aspirations. Make sure to understand the repayment and cost details before lending a personal loan.