What Can You Use a Personal Loan For?

March 18, 2022 • 7158 views

We all have multiple needs and goals. However, our financial situation often hinders the path to achieving them all. Thanks to Personal Loans, addressing these needs is possible now because there are various reasons for taking Personal Loan. The ease of availing of Personal Loans at affordable interest rates makes them stand out as a good financial option. There are multiple reasons for taking a Personal Loan which makes it a good option. 

A Personal Loan can be used for any legitimate financial need, ranging from debt consolidation to home renovation. It can help you achieve your goals, fulfil plans, or fund even your unexpected needs, thus setting you free of financial woes. As it is an unsecured loan, you don’t have to worry about providing any collateral for borrowing. Also, you can choose to get a Personal Loan at a competitively lower interest rate and enjoy the convenience of repaying it over a flexible tenure

All it takes is simple documentation, income details, quick application, and verification. That’s it! Your Loan is then credited to your bank account!

reasons for taking personal loan

Here Are Some of the Reasons for Taking Personal Loan 

1. Personal Loan for Debt Consolidation

Paying off multiple debts can become difficult, especially when these loans have high-interest rate charges. To keep a track of multiple loans and their EMIs can be a tiresome job. However, taking a Personal Loan gives you the advantage of consolidating and paying off all your outstanding balances into one monthly payment at a lower interest rate. For Debt Consolidation to be a reasonable decision, always make sure that the overall monthly payment should not exceed your current payments. Thus, saving you money and the effort of managing multiple monthly debt payments.

2. Renovating and Refurbishing Your Home

Remaking your dream house is no less expensive than making a new one in today’s economic situation. Repairing your old house, fixing the plumbing and electrical wiring etc., are all huge costs. For such expenses, cash liquidity can become a problem. A Personal Loan for home renovation is the best solution to address this issue.

The features and benefits of a Personal Loan for home renovation outweigh any other offerings available with its easy eligibility criteria. It is convenient as it does not require you to provide any collateral or security and ensures that one doesn’t compromise on the quality of work due to paucity of funds. With a Personal Loan, there is no end-use restriction on the money, you may also buy a new set of furniture or décor, as per your discretion.

3. Loan for Medical Emergency Expenses

Sudden medical emergencies can be a financial burden, leaving you with a short time to arrange money. Unplanned financial expenses can be a problem with a shortage of liquid funds. To help you in emergencies like these, Poonawalla Fincorp offers a Quick Personal Loan for Medical Emergencies. With the beneficial features of low-interest rates and no requirement for collateral or security, Personal Loans are a popular choice for those who need last-minute cash to fund medical emergencies. At your last-minute need, you may not worry about the hassles of documentation or eligibility, we offer a very facile process for your emergency.

4. Loan for Purchasing Expensive Goods

The latest products, jewellery or upgrading old household appliances, etc. the list of needs is endless. For such expenses where your savings are falling short, choose a small tenure Personal Loan. A Personal Loan helps any financial crunch big or small for any need. Especially for small purchases, a Personal Loan can be the best option. So, you can get what you need without dipping into your savings. Though you will still have to pay an EMI and upfront processing fees, think wisely, and ask yourself whether you really need to purchase it right away.

5. Vacation Travel Plans

Need a break from your daily routine, want to travel abroad to your dream destination or experience a luxurious journey? Make your wish come true with your very own Personal Loan for travel plans. Get the funds with an instant loan to plan your trip right away and repay monthly at affordable EMIs over your preferred tenure. A Personal Loan for travel can be a great way to give wings to your dreams of travelling abroad. With its easy eligibility and attractive interest rates, it should be your go-to option for planning your expenses.

6. Personal Loan for Wedding

Marriages today are grand and lavish celebrations that come with a fair share of frills, thrills and, unfortunately, bills. Taking a Personal Loan for a wedding allows you to plan your big day just the way you always dreamed it would be. While it sounds attractive, make sure to evaluate all the factors depending on your budget and compare types of loans to get the ideal financial solution.

While a dream wedding can be an exciting thought, it comes with its fair share of expenses, you should be prudent in planning your big day to not leave your savings dry at the end of the day. One should always choose a Personal Loan for wedding that comes with a low-interest rate and flexible repayment tenure.

7. Financing Your Vehicle

In today’s new normal, having your car is a matter of safe and convenient commuting. There are a lot of options in the market to finance your dream car. Some customers tend to take a Personal Loan for a vehicle, as it doesn’t ask for your car as security or a down payment. Car loan interest rates are lower than a Personal Loan. However, a secured loan requires some collateral, and that is where a Personal Loan shines through. In this case, you will have the car to your name.

8. Improving Your Credit Score

Maintaining a good credit score is important. So, if you have a history of missed payments on debts, taking a Personal Loan in the short/medium term and paying it off timely will help improve your credit score. Also, it can add to your credit mix. 

By now you must have a better understanding of the things for which you can use a Personal Loan. The next time you need finance, don't forget that you can avail of a Personal Loan. From covering huge expenses to taking care of your financial emergencies, Personal Loan is the best-consolidated solution! However, it would help if you consider its pros and cons wisely before finalizing your choice.

If you are considering one, check out our Personal Loan offerings and take a step towards fulfilling your needs as the aforementioned are good reasons for taking Personal Loan. We offer affordable interest rates and quick approvals. 


We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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