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Top 9 Reasons Why People Take Out a Personal Loan

By Finserv MARKETS - Jun 3,2019
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Reasons for Personal Loan

Personal loans are a life saviour during a financial crunch. They are instantly available and fall into the unsecured loan category due to which they require no collaterals thus, enabling quick disbursement. Today, more and more people are applying for such loans, thereby, leading to its consistent year-on-year growth. Though there are numerous reasons for a personal loan. Some reasons are popular and almost the same everywhere. Let us discuss some of the top reasons why people take out a personal loan.

Personal Loan Purpose

  1. For Wedding Expenses

One of the major reasons for Personal Loan is wedding ceremonies. Weddings are a week-long affair in India to say the least. From buying dresses to jewellery to arranging accommodation for the guests, wedding expenses are ought to hit the roof. Since this a major life event people do not hold themselves back, they have an extensive budget for the event. Also, if they fall short on cash, they go for wedding loan. You can avail a wedding loan for a value of up to 25 lakhs so that you would not need to compromise on any of your marriage plans.

  1. To Finance a Business

Starting a new business is also a big event in an individual’s life. A new business also demands for a huge amount of unpredicted expenses which an individual may not be able to provide from his pocket always. For such scenarios, Businessman usually opt for this loan. Visit us to check eligibility criteria for Bajaj Finserv Personal Loan for Self-Employed.

  1. To Pay Medical Bills

Another purpose for Personal Loan is medical emergencies. Medical emergencies come unannounced and one can never be prepared enough for it. Medical insurance does cover to a certain extent but if the bills exceed the sum assured, this loan comes handy.

  1. To Clear Credit Card Bills

If you have multiple active credit cards it could be a task paying them off each month. You can take a loan instead and clear all your dues paying only one EMI each month.

  1. For Purchasing a Car

While purchasing a car, a down payment has to be made and then the car loan is given. Making a down payment and getting a loan can take a hit on your savings. Taking a personal loan for the car will enable you to make the full payment at the time of purchase without hampering your savings.

  1. For Buying a Two-Wheeler

Almost every house has a two-wheeler. They are quick to manoeuvre during traffic and help you reach your destination on time. India is one of the biggest markets for two-wheelers and because of the high demand, the supply is high too. For buying this asset too, you can go for this loan as this will keep your savings untouched.

  1. For A Vacation

Have you been wanting to go for a much-needed vacation, but money hasn’t quite favoured you? Personal loan for travel is the answer. You can select a repayment tenure of your choice and repay accordingly once you have enjoyed the sabbatical from monotony.

  1. For Home Renovation

Home Renovation is done largely to do any repair work if needed or to enhance the look of the place. From upgrading your kitchen to doing interiors, renovation requires a set budget which can procured easily with the help of this loan along with tax benefits.

  1. To Pay for long distance relocations

Relocation within the city itself is an expensive affair. So naturally, when you move from one city to another, a lot of money is involved. You can always consider taking this loan to cover those expenses.

  1. Consolidate debts

If you have multiple debts to clear, it can become difficult to keep a tab on the different interest rates, loan terms, or the payment dates. This is where availing a personal loan for debt consolidation can prove to be extremely helpful. With debt consolidation, you can combine all these different payments into one single payment with a fixed interest rate, a fixed term, and a single payment date. It will help you be organized and allow you to manage your finances wisely.

  1. Unplanned Medical Expenses

Life is full of uncertainties and medical emergencies can arise anytime. At such times, if you don’t have sufficient savings to manage the treatment expenses, you can consider availing a personal loan. With the help of an instant personal loan online, you can get access to the much-needed funds quickly and in a hassle-free way. It will help you manage the expenses for treatments, surgeries, paying prescription bills and hospital bills, etc.

  1. For Education

Since a personal loan is a multipurpose loan, you can also avail it to finance your children’s higher education. A personal loan can take care of various expenses such as tuition fees, hostel fees, etc.

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Things to keep in mind

  • Nowadays, various lenders provide personal loan offers with attractive terms and conditions. However, it is always recommended to carry out a detailed research before taking a personal loan. You should compare various aspects such as the interest rates, processing fees, repayment flexibility, pre-payment charges, etc. before making the final decision. This can help you settle for a loan that best suits your needs.
  • Make sure that you have a good credit history while applying for a personal loan. This will increase the chances of your personal loan approval by the lender. Moreover, a high credit score can help you avail a higher loan amount at a reduced interest rate.
  • You must calculate your personal loan EMI beforehand. This will help you to plan your monthly budget in a better way. Make sure that you opt for a loan with affordable EMI to reduce your repayment burden.

Looking for a personal loan? Download our personal loan app to get in touch with us at Finserv MARKETS and benefit from features like quick disbursement, low EMI, minimal documentations and a list of other features. What’s more? Your Bajaj Finserv Personal Loan application can be approved under just 3 minutes and the loan amount will be credited to your bank account within 24 hours! So, what are you waiting for? Check Bajaj Finance Personal Loan Interest Rate at Finserv MARKETS!

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522