This is why personal loans are invaluable to anyone with a limited budget. Over the last few years, the process of getting a personal loan has become extremely simple, minus all the tedious paperwork and documentation!
In this article, we’ll discuss how useful a personal loan is for salaried employees in India.
5 Reasons to Take a Personal Loan
There are a variety of common situations where a personal loan will come in handy, as follows.
1. Unexpected or High Expenses
We all know Mumbai is notorious for its sweltering summer humidity- and the only way to beat the heat is cranking up the AC, which unfortunately causes your utility bills to skyrocket. Or, during the rainy season when commuting to work by cab is unavoidable. While this is still somewhat predictable due to seasons, other types of situations that can require a lot of money upfront, such as a medical emergency, are unpredictable and require urgent money to deal with. Personal loans are an excellent way to deal with crises that can occur ad hoc.
2. Rent & Housing
As mentioned earlier, housing is one of the highest costs you’ll incur while living in the city. Whether you live in a rented flat or are in the process of purchasing your own home, you can’t escape the heavy deposits that you’ll have to provide upfront. Some landlords may even charge several months’ rent paid in advance.
Additionally, home repairs and maintenance work are bound to occur at least once a year, as well as renovation costs if you own a home. There will come a time when something in your house breaks down or becomes damaged and must be repaired as quickly as possible, for example, a burst pipe upstairs will mean you’ll need to call someone like a Vancouver WA emergency plumber to get that fixed for you as fast as conceivable.
3. Consumer Purchases
Need to replace a home appliance, or get a new mobile phone? When you’re short on cash and need something urgently, you don’t need to take out a huge loan. One can take out a personal loan for as low as Rs. 15,000. You can also finance a two-wheeler or four-wheeler purchase with a personal loan.
4. Vacations & Celebrations
One of the best things about Mumbai is that there’s always something to do! There’s never a dull moment when you’re living in the city. You don’t have to worry about having enough money to foot the bill. Treat your loved ones or yourself to a special treat. Or better yet, a much-needed vacation!
5. Debt Consolidation
When we need extra money, oftentimes, one line of credit might not be sufficient. What ends up happening is that you borrow from your family, and friends, use credit cards, or even take out multiple loans. Not only are you saddled in debt, but the heavy interest on all these loans creates a huge dent in your budget. Additionally, paying off multiple creditors can be a hassle. If you are in such a situation, consolidate all your debt with a single loan. This reduces your monthly payments to just one EMI, while also reducing your overall interest to be repaid.
Benefits of Personal Loans
Loans are availed with the primary purpose of financing an expense or paying off debt. However, there are several important benefits you stand to gain when you take out a loan, which we’ll discuss below.
1. Low EMIs
When you take a personal loan, the monthly EMIs can be easily accommodated within your budget. With Upwards, you can get a loan of Rs. 1 lakh and have an EMI for the same as low as only Rs. 2,500!
2. Fast & Easy Process
These days, you can get a personal loan straight to your bank account via a simple online application process. With only a few documents, you can get a loan directly to your bank account within 48 hours or less of submitting your application.
3. Keeps Finances Steady
Even if you have a steady salary, it’s unlikely to remain that way forever. Also, you’re likely to have a set budget every month for your expenses. If an event occurs that requires urgent funds, you might not even have enough saved up to cover the expenses; additionally, it’s unwise to touch your savings. Taking out a personal loan allows you to comfortably repay the low EMI every month while letting your savings remain untouched so that they can grow!
4. Credit Score
One of the best benefits that you stand to gain when taking out a loan is the ability to improve your credit score. Having a high credit score means that shows that you’re a fiscally responsible individual- and lenders love this type of person! Not only will they offer you lower interest rates on loans, but a higher credit score means that you’ll be eligible for higher loan amounts in the future.
Therefore, if you’re planning to make a larger purchase in the future (such as a home, vehicle, or a child’s education costs) build up your credit score as soon as you can so that you can be eligible for higher amounts with lower interest rates.
5. Enjoy Life Moments
How many times have you been unable to attend a meaningful event or purchase something you needed (or wanted!), just because you couldn’t afford it? Finances are meant to fulfill our goals and enable us to live our lives to the fullest. If you have a cherished goal of traveling abroad or buying a car for your parents, don’t feel limited by your salary; personal loans can help those dreams come true.
Conclusion
You can always keep your finances in check with a personal loan. Be it the end-of-the-month cash crunch or an unexpected (and expensive) situation, personal loans are always an excellent option for urgent funds. Apply for your loan today, with approval and disbursal in just 48 hours!
