Reasons to get a personal loan during an emergency

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There are times when there is a need of funds and at that time personal loans help. One cannot afford to wait endlessly to get their loan sanctioned. Only an emergency personal loan can help you when time is of the essence. A personal loan has always been a great friend in times of need.  

There are times  like the COVID-19 outbreakdown which gave rise to lockdown, social distancing rules, and self-quarantine norms to ensure safety and stop the virus from spreading. During this time many of us were out of work which created a financial crisis. At this time people run out of funds or need extra cash suddenly? It’s time you considered taking a personal loan during COVID-19.

Personal loan can help you in this because it is an unsecured loan that you can take without pledging any collateral. E.g. If you take a home loan, your house becomes your collateral. Moreover, it’s not just during Coronavirus; a personal loan is also useful any time. Perhaps in the future, you’re planning a big wedding or a holiday.

Here are the most top reasons to get a personal loan and when they make sense:

  • Debt consolidation.
  • Home renovation
  • Medical emergency
  • Moving/Relocating costs
  • Wedding
  • For festival expenses
  • Appliance purchases

Debt consolidation

When you have various other loans at that time, taking a personal loan is the best. Debt consolidation is one of the most common reasons for taking out a personal loan. When you apply for a loan and use it to pay off multiple other loans or credit cards, you’re combining all of those outstanding balances into one monthly payment. This grouping of debt makes it easier to work out a time frame to pay off your balances without getting overwhelmed.

At times Managing various loans and credit card dues from several lenders can be very challenging. Missing or long pending credit card payments can result in negatively impacting your credit score. Availing a personal loan in such a situation can save you from financial distress. All you require to do is consolidate different payments into one debt with the help of a loan. This method offers several benefits that include enjoying an overall lower rate of interest which can help in reducing the timeframe required to pay-off your loan.

Home renovation

During COVID-19 when everything was locked down all of us understood the importance of Home. A personal loan can be a great option to pay for home renovation, whether you want to put on a new roof, install solar panels, remodel your kitchen or add a swimming pool.

Medical emergency

Medical emergencies can take a serious toll on your finances. During COVID-19 we have understood the fact of medical emergencies and also the need of Health insurance. But, Even if you have medical insurance, it may not always cover all expenses. This is when you can apply for a Personal Loan. Money is usually disbursed quickly, and a Personal Loan is hassle-free when compared to the financial stress that can come with using up your savings to meet huge medical expenses.

Moving/Relocating costs

When you are moving over a short distance then You probably won’t need to take out a personal loan. However, if you’re facing moving to a long-distance , costs can be expensive creating a necessity applying for a personal loan.

Personal loan funds can help you move your household belongings from one place to another, purchase new furniture for your new residence, transport your vehicle across the country and cover any additional expenses.

Before pursuing a personal loan to help cover your big move, consider whether your income will enable you to pay off your loan balance. This consideration will help you avoid the added stress of paying off your personal loan on top of moving to a new location.

Wedding

In a country like India Weddings are usually a grand affair. You may have dreamt of the perfect wedding, but to make this dream come true, you need to have adequate finances in place. In case your budget gets overboard, do not worry A wedding loan can be used for big-ticket items like the venue and bride’s dress, as well as smaller expenses like flowers, photography, the cake and a wedding coordinator. This loan comes with no restrictions on how you use the money.

You can also consider paying for the engagement ring with a personal loan. Depending on the kind of ring you’re getting, engagement rings can easily cost several months’ worth of your salary. If you don’t want to deplete your savings account, consider a personal loan to help make your engagement and wedding exactly the way you always dreamed it to be.

So, whether you need the funds to take care of the catering, the flower decoration or even your trousseau shopping, a Personal Loan can help.

For festival expenses

As you may know, India is a land of numerous festivals and cultures. Here Festivals are even marked as auspicious times to buy assets as a sign of progress and growth in health as well as wealth – particularly, Gudi Padwa, Dussehra, Diwali, Eid, and Christmas.

During these festive times, we all aspire to provide our family with all the goodies ––home appliances, gadgets, watches, jewellery, and so on. But at that time, the financial resource could be a constraint. Here’s when a personal loan can come to your support. Today, personal loans are packaged as ‘festival loans’ during the festive season. Festival loans tend to be economical compared to a regular personal loan and other alternatives.

Appliance purchases

Household disasters can strike unexpectedly. If you suddenly need to buy a new washer and dryer but don’t have the funds on hand, a personal loan can provide relief. Other large purchases, such as an entertainment center or gaming computers, can also end up costing more than what you have in your checking or savings account.

Personal loans allow you to purchase major household appliances and electronics immediately, rather than having to wait months to save up for them. Though you’ll have to pay interest and potentially upfront fees, a personal loan can save you time and money in the long run, since you’ll be able to avoid using laundromats and other short-term but expensive alternatives.

Higher education expenses

If you are short of funds before sending your child to a foreign university abroad or in India or need to pay their fees, you can apply for a personal loan and meet his/her higher education expenses. Usually, education loans charge high-interest, in such cases,  you can also opt for a personal loan to fund your child’s education in India or abroad.

And though there are many different reasons to take out a personal loan, remember that no matter the circumstance, it must be paid back eventually. When you take out a personal loan to pay off credit cards or to throw the perfect wedding, you are borrowing money that must be repaid with interest on top. Personal loans are a great way to consolidate debt and make major purchases, but you should always utilize this financial resource responsibly.

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