When Should You Take A Personal Loan?

When Should You Take A Personal Loan?

We avail loans when we need instant cash right? And the cash we get after disbursement is what we use for some of our instant needs. This amount is what we wish to repay after a certified period of time. There are a variety of loans out there for different purposes. Like, you buy a car with an auto loan, you purchase a home with a home loan, and you pay for your higher studies with an education loan. But, what attributes a Personal Loan?

The answer is nothing attributes a personal loan! You take a personal loan for just about anything. It’s not characterized by specific things as in the case of a car loan. You can even buy a car, home using a Personal Loan. A personal loan doesn’t have collateral like an auto or a home loan, where your collateral will be your car and home respectively. Due to this interest rate in Personal Loan is higher than others.

A personal loan is an “unsecured” loan.  However, there are secured personal loans too, which have high-value collaterals. Generally, bank officials ask you the reason as to why you want to avail of the loan. This is part of the documentation process. But the plus point here is, there is no limit on how it should be used.

When is a Personal Loan an Intelligent Choice?

1. While Paying Credit Card Bills

Have you exhausted your credit card limit? After that, you have used your other credit card & you’ve exhausted the limit of that card as well? Have you been paying for your credit card bills since what, ages!? Well, it’s time to get a personal loan and consolidate all the payments into one loan. the interest on one personal loan will be way lower than the consolidated annual percentage rates on all the credit cards put together.

2. Fulfill Personal Needs

Have you been postponing buying your favorite gaming laptop due to insufficient funds? Or, have you always wanted to buy a car for your parents but you were unable to do so because you don’t want to fall into the trap of financing them through the seller? Then, for the latter reason, ask them to quote so that you too can do your own, little research to find out if an EMI on a financial loan or a personal loan would be cheaper.

You can opt for a personal loan to fulfill your current personal needs or needs which you’ve been postponing due to insufficient funds.

3. Getting Married

You want to tie-a-knot but, you aren’t sure that you would be able to finance your wedding? Apply for a personal loan to get the event done, just the way you planned! Any large event such as a wedding burns deep holes in pockets and credit cards too! Also, it’s not easy to add this much finance to your credit card bill and continue paying that for ages. You can check for available personal loans and compare them with your credit card interest rates. Make a wise decision!

4. Student Loan

When you apply for student loans, you have to start repaying the loan amount back to the concerning authorities one year after you graduate. Now, if you don’t get into a suitable job during that time, how are you planning to repay them? Now would be a good time to apply for a loan and refinance your education loan with it. A student loan has a lower interest rate. But it’s also possible to get a loan of a lower interest rate if you disclose the purpose. Make a wise decision!

How Can We Help?

OVX India is one of India’s Largest Upcoming Online Marketplace which you can access from anywhere in India. Just Log on to OVX Inda & search for a Personal Loan after providing a location. The page takes you to a place where a list of organizations/banks offer their Loan services. Choose out the option that best suits you. Also, keep what we’ve discussed in mind. It’s that simple!

If you liked this article, check out another cool article on How To Avail A Personal Loan?

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