6 Real-life Situations Where A Personal Loan Can Be A Lifesaver

Sometimes, a lifetime of savings might not be enough to meet financial emergencies or events, ones that are beyond your control. If you ever come across such a situation, all you need to do is apply for an instant Personal Loan and ease your financial tension.

A Personal Loan can help you out when you need to fund a wedding, pay medical bills, cover student loans, or clear an outstanding debt. You no longer have to avail all your savings or call a friend for help. All you have to do is get all the necessary documents in order and apply for a Personal Loan at a bank or NBFC of your choice.

6 Real-life Situations Where A Personal Loan Can Be A Lifesaver

However, before you take a Personal Loan, it’s imperative for you to know that this is an unsecured debt and hence, comes with a high rate of interest. But, if you have a steady source of income, you should be able to clear off the loan amount quickly. Also, before you file an application, determine the exact loan amount you require. There’s no point in paying high-interest charges for a loan amount that remained unutilized.

Now that you’re zeroed in on a Personal Loan, let’s take a look at 6 situations where it’ll be of immense help to you.

1) To Fund Life Events

Weddings, engagement parties, and house warming ceremonies can all be costly affairs. You can neither escape these events nor can you complain about how much it will cost you. In order to ease tension during such important ceremonies of your life, you can take a Personal Loan. Create a budget and determine the loan amount well in advance. Once you have done that, approach a financial institution with your Personal Loan application. The best thing about this kind of loan is that it’s approved and sanctioned quickly and you’ll be able to pay for the events on time.

2) To take care of Medical Emergencies:

Medical emergencies are unforeseen incidents that can crop up anytime. You never know when a medical emergency might befall you or one of your family members. If you have a health insurance plan, you might be able to clear some of your medical bills. But, not all health insurance schemes provide full protection. Some plans only cover surgery and hospital stay charges, but won’t provide for pharmacy bills, doctor fees, and pathological tests.

These bills can leave a dent in your savings and, sometimes, you might not even have enough funds to pay for them. At such a crucial time, a Personal Loan ensures you are able to provide the best care and services to yourself and your family. Since the application process is hassle-free, you’ll have enough time to focus on your or your loved ones’ health.

3) To handle Student Expenses

Quite often, students who travel abroad for their higher education find it hard to cope with the change in currency and might end up spending more. As a parent, you can ease their tension by supporting them financially. Applying for an education loan in advance might be helpful, but it involves long and tedious paperwork and collateral. But a Personal Loan has minimal paperwork and once your loan is sanctioned, the amount is disbursed rather quickly.

Whether your child needs money to cover their living costs or to pay tuition fees, a Personal Loan can help them out. This will in turn help them concentrate on their studies and focus on their career rather than worry about impending bills and late-fee notices.

4) To Clear Home Equity Loans

You might use home equity to get a loan and meet your financial needs. A home equity loan is where you use the equity in your property as a collateral in lieu of the loan amount. This puts your property under the jurisdiction of the lender and you may lose it if you default. If you have taken a home equity loan, then it’s advisable that you pay it off as fast as possible. You can easily take a Personal Loan and use it to clear your debt. One of the most important benefits of taking a Personal Loan is that the lender will not ask you for a reason. You can use the money to fulfill any financial requirements you might have.

5) To Overcome Credit Card Debt

High-interest rates on different credit cards can sometimes leave us gasping for breath. If you have a credit card, you might already know the high-interest charges you have to pay if you miss your bill payment date. Credit cards can come in handy when you are trying to make big purchases but not if you have to pay so much extra. So, if you have a pending credit card bill, take a Personal Loan to clear it immediately. The rate of interest levied on a Personal Loan is much lower than what credit cards companies usually charge.

6) To Improve your Home

Accidents on the property, equipment failure, faulty wiring, painting, or remodeling of your home can eat into your savings. So, instead of withdrawing an FD or your savings, you can easily apply for a Personal Loan and renovate your home. Whether you want to get it painted or buy new equipment for your house, a Personal Loan will help you achieve all of these and more. What’s more, you can pay off the debt amount with your salary and leave your savings intact.

You never know when an unexpected emergency may arise, and easy Personal Loans can be very helpful when it does. These scenarios are unavoidable and will need your immediate attention. Choosing a Personal Loan with the right tenure and rate of interest will help you sail through a financial crunch easily.

Leave a Comment