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When are Personal Loans a Good Idea?

By Finserv MARKETS - Jan 29,2020
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Apply for personal loans

In recent years, personal loans have emerged as a great source of financing for individuals who are in need of instant cash. Availing them proves to be extremely handy as the loan amount can be utilized for various purposes. Moreover, easy availability and instant disbursal of the loan amount have further contributed to their increasing popularity. You can apply for a Bajaj Finance Personal Loan from the comfort of your home and get the loan amount credited in your bank account within a day. You can use the loan amount to meet your financial requirements. Some of the ideal situation wherein a personal loan can be of great help are mentioned below:

Debt consolidation

You can consolidate your debts by availing a personal loan. This will help you save a large amount of money in the long run. Debt consolidation by availing a personal loan will lower the interest rate and reduce your repayment burden significantly. Therefore, it is always recommended to consolidate all your high-interest debts by availing this loan at a reasonable interest rate.

Financial emergency

The instant availability of personal loans makes them an ideal choice in case of financial emergencies. Be it taking care of medical expenses, loss of job, or home renovation, a personal can help you avail the much-needed funds with ease. However, before you apply for this loan, make sure that you check your loan eligibility beforehand. This will reduce the chance of rejection of your personal loan application. Bajaj Finance Personal Loan available at Finserv MARKETS has simple eligibility criteria. Also, the documents required are minimal, and the entire process of availing the loan is online.

Managing wedding expenses

Indian weddings are often grand affair and require a large amount of money. Right from booking the venue, decoration, food, to buying clothes and jewelry, all these things can take a toll on your finances. This is where a personal loan can help you take care of the expenses in a much better way. You can avail this for wedding and repay it through affordable EMIs. Make sure that you calculate your personal loan EMI beforehand with the help of an online EMI calculator. This will allow you to manage your monthly expenses efficiently, thereby helping you to make timely repayment of the loan amount.

Refinancing education

Usually, education loans have a higher interest rate as compared to personal loans. Therefore, if you have availed an education loan for your children’s education, you can consider refinancing it with a personal loan at a lower interest rate. However, you must take into consideration various aspects such as tax benefits, loan features, etc. before refinancing the education loan. This will help you make a well-informed decision.

Planning a vacation

Everyone needs a break from their work once in a while to rejuvenate themselves. Therefore, if you are looking to plan a vacation with your family or friends, you can consider availing a personal loan for the same. Instead of liquidating your years of savings, opting for a personal loan for vacation would be a better decision. Make sure that you settle for a personal loan with a competitive interest rate. This will make your EMIs affordable and reduce the repayment burden to a great extent.

Improving credit score

Your credit report mostly reflects your credit card debt. Availing a personal loan can help you add to your credit mix. Also, having different types of loans can help you boost your credit score.

Availing a personal loan may help you reduce your credit utilization ratio. Also, if you repay your personal loan on time, it will improve your credit score.

 

Check CIBIL Score
 

By utilizing your loan amount wisely, you can take care of all your financial needs in a convenient way. It is recommended that you must compare various lending institutions before making the financial institutions. This will help you make a better decision and you’ll be able to avail loan that best suits your needs. A Bajaj Finserv Personal Loan comes at a competitive interest rate and has various attractive features such as flexible repayment options, low processing fees, prepayment facility and no hidden charges. The application process is easy, and the loan can be availed with minimal documentation. Moreover, you also get the opportunity to customize your loan as per your requirements.

With a good credit score, you will be eligible for a higher loan amount at a reduced interest rate. Therefore, make sure that you improve your credit score by clearing all your outstanding dues. Before applying for a personal loan, you can check your CIBIL score for free on Finserv MARKETS. This will give you a clear idea regarding whether your loan application will be approved or not. Lastly, you must go through the terms and conditions of your loan agreement carefully before signing it. In case of any query, you must seek the help of a financial expert. This will help you avoid any inconvenience in the later stage.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

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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