10 Reasons to Choose Personal Loans in India

Updated on: 18 Jan 2024 // 5 min read // Personal Loans
Author :(534 posts)

With the rising cost of living across all major cities of India, it is not uncommon to feel a shortage of cash, once in a while. Indeed more and more people these days are applying for credit cards and using short credit lines for their everyday needs.

From a desire to own the latest mobile phone to a hard-pressed wish to flaunt an expensive car at your best friend’s wedding, there are all types of reasons for which Millenials are applying loan for in India. 

Yes, today’s consumer is a smart buyer and investor. They use loans not only to meet the cash lapses but to not hurt their investment plans & support the lifestyle of their choice.

Why Personal Loan?

A Personal Loan is an unsecured loan offered by banks, NBFCs as well as new-age FinTech lenders to help customers meet their urgent financial requirements. When you take a Personal Loan for any of your needs, you can use the money as per your requirement, i.e., there is no interference from the lender. Moreover, the flexibility to repay the loan amount through EMIs does not put any additional burden on your monthly financials.

Apply for a Personal Loan Online

With attractive interest rates starting from 10.99% and extended repayment tenor of up to 60 months, Personal loans offer you much needed financial flexibility in times of crisis. Besides, you can borrow Rs 50000 to Rs 40 Lakh, basis your needs and bank’s policy.

Compelling Reasons Why Indian Apply For Personal Loan

As mentioned above, the reasons for taking a Personal Loan can vary across borrowers. In a diverse country like India, there are all types of reasons for which people apply for a loan. Read on to learn more about 10 of the most interesting reasons why Indians apply for personal loans in India.

1. Paying off Credit Card debts:

One of the most popular reasons for taking a Personal Loan is to pay off Credit Card debts. This indeed is one of the global trends.

Credit Cards carry an APR (Annual Percentage Rate) of up to 48% and can be a significant drain on your finances. By availing a Personal Loan, available from as low as 10.99% per annum, you can repay your Credit Card debt and get freedom from the vicious circle of costly credit cards outstanding. Moreover, as you are supposed to make your Personal Loan repayments through EMIs, there is not a significant burden on your monthly expenses either. Not to mention, you also get the flexibility of choosing the loan tenure according to your loan amount and financial situation.

2. Paying for a Wedding:

A wedding is one of the most significant occasions in any Indian household. Whether it is your wedding or your son’s/ daughter’s, you do not want to leave any stone unturned. When your savings run out, availing a Personal Loan allows you to fulfil all your desires without a miss. Many financial institutions offer Personal Loan for weddings at attractive terms and rate of interest. For instance, a Bank of India Personal Loan is available for amounts up to Rs. 10 Lakh for urgent wedding-related expenses.

3. Higher Education Expenses:

While an Education Loan can take care of the university fees; you still need a lot of money to pay for allied expenses. Travel expenses, insurance premiums, the cost of books, and the security deposit for accommodation are some of the essential expenses associated with higher education. By taking a Personal Loan you can pay for these expenses and realise your dream of quality higher education.

4. Going on a foreign vacation:

Going to an exotic foreign location for a holiday is a dream for many. But this dream has to be postponed due to the significant amounts of money required. By taking a Personal Loan, you can immediately embark on your dream holiday and satisfy your wanderlust. Kreditech Personal Loan is extremely popular with individuals looking for an exceptional holidaying experience.

5. Purchase Jewellery or other expensive items:

Sometimes, you wish to indulge yourself by buying some gold or other expensive gadgets. However, the paucity of funds might stop you from undertaking such a purchase. With the help of a Personal Loan, you can now purchase any gadget or jewellery that you have always longed for. Bajaj Finserv Personal Loans of up to Rs. 25 Lakhs allow you to indulge yourself without any worries.

6. Home Remodelling:

Upgrading your home with the latest amenities is a cherished desire for most homeowners. As it involves a significant amount of money, you might contemplate postponing this decision. With the help of high-value personal loans, you can give your home the much-desired upgrade without any hassles.

7. Medical Expenses:

Sometimes, the coverage offered by your health insurance is inadequate to pay for the hospital expenses. In such a situation, you might have to consume your savings to take care of the expenses. By availing a Personal Loan, you can now easily take care of all the hospitalisation and post-hospitalisation expenses.

8. Starting a new business:

Start-up culture in India is booming, and everybody is looking to join the bandwagon. Though, whatever may be your innovative idea, it can not be given a proper shape without money. If you do not have adequate savings with you, availing a Personal Loan can allow you the freedom to chase your entrepreneurial goals.

9. Buy a Two Wheeler:

Having your vehicle has become a necessity in present times. Although two-wheelers are cheaper than a car, you still need to pay a substantial amount of cash for the purchase. Instead of using their savings, many people prefer taking a personal loan to buy a bike or scooter.

10. Debt consolidation:

If you are running multiple loans but are finding it difficult to keep track of repayments, you can use a Personal Loan for debt consolidation. By availing a low-interest Personal Loan, you can consolidate all your debts into one single loan and therefore enjoy significant ease while making repayments.

Please note that this list is indicative and not in the sequence of preference. With multiple benefits that personal loans bestow on the borrowers, they have become an ideal option during times of requirement. By effortlessly addressing your urgent needs, Personal loans offer you a significant degree of financial freedom as well as peace of mind.