Reasons why people apply for a personal loan

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Personal loans have become one of the more valuable financial products in one’s arsenal largely because of their versatile functionality. The best thing about taking out a personal loan is the simple eligibility criteria it entails – all you need is good credit and paperwork ready.

Why should you even take out a personal loan? This is exactly what the rest of the article focuses on – some of the most common reasons to apply for a personal loan in India:

1. To transform your home

Home is where the heart is; this maxim can never fall from grace. Therefore, it becomes important to invest in home decor when you want to spice up your living space. Taking out a personal loan on favorable terms is one of the easier ways to remodel your home.

2. To finance a long-awaited family trip

The rapid pace of our lives today makes it imperative that we finally embark on the annual family vacation that has been postponed for some time. A short-term personal loan is a very convenient way to enjoy a quality time out with your family without breaking the bank or damaging your wallet.

3. To finance an urgent medical obligation

Life is certainly a rollercoaster ride with medical emergencies that can sneak up on you when you least expect it. However, if you spend some time looking around, you will find that a personal loan is the best fit for such a commitment.

A personal loan can get you through a medical emergency in such a situation by taking care of unplanned expenses and other routine treatments. Easy approval and quick withdrawal of funds are add-ons that will help you handle unforeseen commitments like these.

4. To consolidate debt

Debt consolidation essentially means taking out a new loan to consolidate and eventually pay off a number of other debts and liabilities (usually unsecured).

With a lot of debt to pay off, it’s possible that you could get the exact repayment dates mixed up and end up defaulting when the time comes. It is therefore convenient to consolidate all your debts into a single personal loan, considering that you only have one loan and one repayment date to think about.

5. To pay your credit card fees

This is perhaps one of the most important advantages of taking out a personal loan. Credit cards are usually associated with a high interest rate, while a personal loan is charged with comparatively lower interest rates. This way you can save your hard-earned money significantly.

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This content was created in collaboration with YONO SBI.

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