logo
logo
AI Products 

5 Scenarios Where You May Need Personal Loans

avatar
Loan walle
5 Scenarios Where You May Need Personal Loans

Personal loans are multipurpose loans. Even though the interest rate is higher than a car loan or a home loan, it has the advantage of being flexible. It is flexible in terms of the loan amount and repayment tenure. However, it is a liability. If you are unable to repay it, your credit score will take a dip. That will cause a financial setback. 

 

Which route to chose?

Personal loans are available both online and offline. The benefit of an offline loan is a lower rate of interest. However, it's a lengthy process, and an enormous amount of paperwork is required. Therefore many prefer online mode to apply for a personal loan. The process is hassle-free, requires minimal documentation, and the process is faster. However, the only con is the higher rate of interest. But, by planning your payments smartly and taking a short term online loan, you can tackle the high-interest rate. 

 

The legitimacy of an online lender

Before applying for a personal loan, you should check for the legitimacy of the online lender. One major factor to keep in mind is whether the lender is legally allowed to lend. In India, only an NBFC or a bank is allowed to lend money. If an organization does not mention whether it is an NBFC or a bank, you should not borrow from them.

However, if they are associated with an NBFC, you can take a loan from them.

 

5 Scenarios in which taking a personal loan is advised

Medical Emergencies 

Sudden car accidents or health issues can cause immediate admission to the hospital. If you do not have health insurance and have meager savings, then a sudden need for money can leave you helpless. Your family and friends want to help you but are unable to because of their financial obligations. In this situation, you can opt for an online loan. Since the repayment tenure is short, it can help you pay the loan back as soon as you receive your salary.

 

Sudden Transfer

Picture this: you wanted a promotion, and you finally got it. But it calls for a transfer to a different city. Moving to another city with your family requires funds that you may not have right now. Furniture movers and travel tickets can add up to quite a lot. If you do not have savings, then it can be quite stressful. You require bridge funds, and therefore, a personal loan may help you cover the cost of moving cities. If you are moving from Delhi to Bhopal, then an instant loan in Bhopal will be of great help. Once you receive your salary you can pay it back lump-sum or in installments. The repayment conditions depend on the lender to lender.

 

Car/two-wheeler service

Sudden breaking down of your four-wheeler or three-wheeler can cost you an arm and a leg. It is a cost you have to pay if you travel to work regularly using the said vehicle. Therefore an urgent repair of the car or motorbike is necessary. A personal loan can help you with the same. Thus you do not have to miss out on your commute to work and lose the salary on the days your vehicle is not functional.

 

House Repair

Leaky roofs and taps can be quite annoying. You expect your house to be comfortable after a long day at work, and even the small inadequacies can be quite upsetting. Online repair-men are common but they charge a lot for simple functions. Therefore, you can apply for a personal loan to collect funds to get your house appliances fixed.

 

Unexpected Travel

An Indian has many relatives that live in every corner of India. When someone passes it can call for unexpected travel. It would be impolite and often rude to decline to go to greet your condolences to your extended family. Therefore, a personal loan can help you cover these unexpected travel expenses.

 

When to not take an online loan?

 

We discussed some scenarios where taking a loan is acceptable and sometimes necessary. Here are some situations where taking a loan is not advised.

Buying the latest gadgets

It is a foolish decision to take a loan for gadgets to look “cool” among your friends and show it off on your Instagram. If your phone works fine, then taking a loan to buy the latest iPhone is not a beneficial financial decision.

Powering a vacation for leisure

A vacation is an excellent way to relax. But taking a loan for a vacation is stupid. A loan is a liability and is taken in an urgent and financial crisis. A vacation is neither urgent nor is it a financial crisis.

We hope you found relevant information and will take smart financial decisions.

collect
0
avatar
Loan walle
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more