The banking and finance sector in India has seen drastic changes in recent years. Nowadays, you can easily get a personal loan through a hassle-free online application process. It is a multi-purpose loan and therefore the loan amount can be used for various purposes. In addition, since this is an unsecured loan, you do not need to offer any collateral while availing of the loan amount. However, if you are getting a personal loan, make sure you use the loan amount wisely.
1) Debt consolidation
Debt consolidation is the smartest move toward building a healthy financial future. Carrying multiple loans and outstanding credit card bills is the sure-fire way toward financial difficulties. This is where a personal loan can come in and rescue you from your debt-ridden situation. The biggest advantage is the low-interest rates on personal loans. Your outstanding debts can be consolidated with one single Personal Loan at a lower interest rate. A personal loan will provide a way in which you only have to make one repayment in a month, thus organizing your finances better. Depending on your loan eligibility, you can also go for more than the sum of the remaining amount in your existing loan that you are trying to consolidate. In other words, you can go in for a loan top-up.
2) Wedding expenses
A wedding is one of the most important events in a person’s life. People leave no stone unturned to make sure their wedding is elaborate and memorable. However, planning a grand wedding can be a daunting task. This is where opting for a personal loan is the best choice. You can get the required amount immediately without any hassle.
3) To improve your credit score
Having a healthy credit score is very important when you want to borrow money. Credit scores are determined by credit bureaus based on how individuals, as well as institutions, manage borrowed money.
Borrowers who are overly leveraged or who have not repaid their past loans on time are considered more at risk. Thus, consolidating your debt, maintaining a healthy debt to income ratio, repaying your loan on time, etc. are some ways to improve your credit score.
Remember to pay your loan instalments on time till the loan expires, as delaying or missing the payment can damage your credit score. Thus, if you want to take a big loan like a housing loan in future, a healthy credit score will be extremely useful.
4) Home Upgradation
An important use of a personal loan is to upgrade your home with modern fittings, the latest equipment and redesign for better use of space. You may want to make it more functional for you or you may want to increase the resale value if you want to sell at some point in the future. One of the most efficient ways is to take out a personal loan for home improvement or home maintenance.
5) For travel arrangements
A personal loan for travel is a loan intended for travel purposes. It can cover all the expenses associated with your vacation, such as flight fare, accommodation, travel, etc. So, if you are planning a trip, but you do not have the funds for it, your plan may not fly. With a personal loan for travel arrangements, you can easily get the funds you need to organize your travel and other arrangements for your dream vacation.
6) For education
Getting a personal loan for education is one of the most common uses of personal loans nowadays. Often, students want to study higher for certain courses that may not qualify for an education loan or may need more funding than they can get through an education loan. Thus, parents can apply for a personal loan to fund the higher education of their child(ren). These loans are also taken by working professionals to apply for short term vocational courses, special certificates, higher education etc. It can also take care of children's school fees.
7) For business owners
Personal loans offer many benefits to business owners. Personal loans are versatile and as a business owner, they do not restrict you on the use of funds. Sometimes your business may need multiple expenses or immediate cash-based expenses. In such situations, personal loans can be made available in a very short time. Personal loans can also be used by self-employed professionals for any business or personal need.
You can choose a personal loan from Poonawalla Fincorp to meet your fund needs. Once you fill out the application form and upload the required documents, your loan application will be approved immediately, and you will receive the loan amount in your bank account within 24 hours. So why wait Get a Poonawalla Fincorp Personal Loan and take care of your financial needs in a smart and hassle-free way.
Digitalization has made it easier to get paperless loans online. Such paperless loans are usually approved within minutes or hours once they have been submitted. What`s more? You can apply for an online personal loan from the comfort of your home by simply visiting the preferred lender`s website.
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