10 Reasons Why Indians Apply For Personal Loans

Updated on: 14 Dec 2021 // 22 min read // Personal Loans
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A Personal Loan comes extremely handy when it comes to gaining access to easy cash. What makes Personal Loans astoundingly popular amongst the masses is the ready availability, minimal documentation, and the sheer freedom to use the loan amount to the eligible applicant.

Whether it is an emergency, or an eventful day as delightful as marrying off your beloved daughter, a Personal Loan can make life much easier for you by helping you have the upper hand on your financial situation. However, these aren’t the only reasons for taking a Personal Loan.

We have consolidated a comprehensive list of 10 reasons why Indians Apply for Personal Loans. Let’s take a quick look at them.

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1. Building Credit History

When one is contemplating getting a substantial credit such as a Home Loan, the credit score of the individual plays a crucial role in determining her credit worth. If the borrower does not have a reasonable credit score, a great way to build the same is by opting for affordable small unsecured loan such as a PNB Personal Loan and repaying it in a timely and efficient manner. Not only does this reflect positively on your credit history; but it will also assure the lender of the repayment ability and responsible behaviour of the borrower.

2. Consolidating Debt

When an individual has numerous Credit Card Bills in conjunction with a few other debts such as Car Loan, extended credit lines, etc., it wouldn’t be wrong to say that they are in a debt trap. A great way to deal with this unsolicited situation is to apply for a Personal Loan. Once the loan is approved and disbursed, the borrower can use the money to pay off outstanding debts and concentrate on repaying one EMI for the Personal Loan. This simple measure can add the much-needed convenience and peace of mind, to the otherwise distressed financial situation.

3. Meeting Medical Expenses

More often than not, medical emergencies come unannounced, and in the absence of apt medical insurance, the only way to deal with such emergencies is to look for a Personal Loan. Since the loan amount is often disbursed within a day, it is one of the most reliable ways to get access to the requisite funds.

4. Financing a New Business

India is a land of entrepreneurs, and a vast majority of the people with entrepreneurial streaks give up their dreams due to lack of funds. However, nowadays more and more people are now relying on Personal Loans to finance their dream ventures and are bringing promising business ideas to life.

5. Paying for a Vacation

Whether it is a weekend getaway or a fortnight-long holiday, everyone needs to take a break from their regular life once in a while. While some people save for some vacations, there are others who love to make travel plans instantaneously. For such people, Personal Loans come in handy, as they help them to pay for their expenses without putting off their dream holiday.

6. Incurring Unexpected Expenses

Facing unexpected expenses is an inevitable part of adult life. While some of these expenses can be easily taken care of, others need deliberation and a significant amount of finances. It is in such situations that some people turn to Personal Loans, and fulfil these unforeseen obligations in a convenient manner.

7. Paying Off Credit Card Bills

While Credit Cards offer a high level of financial freedom, there are times when the bills can mount to large sums. Since Credit Card dues attract an exceptionally high rate of interest, it is best if these bills are taken care of at the earliest possible. And what better a way to do so, than by getting a Personal Loan, and using the disbursed amount towards this purpose.

8. Sponsoring the Child’s Education

There are times when Education Loan becomes out of bounds due to the institution or the course not being listed, or due to the need for a higher loan amount. In such cases, most borrowers apply for Personal Loans and help their children fulfil their dream of pursuing their education in their desired institutions and fields of interest.

9. Renovating Homes

Most people like to keep up with the changing trends when it comes to the look and feel of their house. Then, there are others, who need to add some furniture, or even a room or two to cater to the changing needs of their family. In both the cases, the need for additional funds remains a constant, which can be easily met by applying for a Personal Loan.

10. Purchasing Gadgets

The modern day world is dominated by technological advancements and the latest electronic gadgets. Some people tend to be true fans of such gadgets, and don’t shy away from procuring a personal loan to fulfil their desire of purchasing these electronic wonders.

The above list is compiled keeping in view the latest trends in consumer consumption behaviour. All banks and NBFCs extend hassle-free unsecured loans to eligible applicants. Small Personal Loans up to Rs 30 Lakh are instantly approved for 1 to 6 years at an attractive rate of interest. All you need to do is compare and choose the perfect loan provider.

Also Read: How to Apply Online for an Instant Personal Loan?

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

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