Top 10 reasons for getting Personal Loans

Imagine facing an unexpected financial emergency: a sudden medical expense, a home repair, or an opportunity you can't miss. All these situations require you to have quick and easy access to funds and are good reasons for Personal Loans. While borrowing from those you know might seem easier and more flexible, it lacks the structure, legal formalities, and potential impact on relationships that formal lending options offer.

A Personal Loan is an unsecured loan and can be availed of easily. All the bank needs to check is your income, employment status and credit score. Besides, with banks offering completely digital application and approval of Personal Loans, you can get the amount disbursed and in your account in a few minutes. Given the ease of availing the Personal.

Reasons for Personal Loans

1. Emergency Expenses: This is one of the best reason for Personal Loan. Being unsecured loans, Personal Loans can provide financial relief during unexpected emergencies like medical bills, car repairs, or urgent home repairs. They offer a quick solution to address immediate financial needs without the need for collateral.

2. Debt Consolidation: If you are repaying multiple loans simultaneously, or in other words, facing a debt burden, such as such as credit card balances or other high-interest loans, you can opt for a Personal Loan to consolidate your various debts into a single Personal Loan. This simplifies repayments and often comes with a lower interest rate, reducing overall financial strain.

3. Home Renovation: Personal Loans are frequently used for home improvements and renovations. Whether it's upgrading the kitchen, adding a new room, or enhancing the overall aesthetics, a personal loan can be a flexible financial tool for such projects.

4. Education Expenses: Pursuing higher education or sending a child to a top-rated institute can be expensive. Personal Loans can cover tuition fees, accommodation costs, and other related expenses, making education more accessible for many.

5. Wedding Expenses: Indian weddings are elaborate affairs and the associated costs can be significant. Personal Loans offer a convenient way to fund wedding expenses, ensuring that you can celebrate this important life event without compromising on your dream.

6. Travel and Vacation: These are common reasons for Personal Loans as it allows you to fund your dream vacation and have an unforgettable experience. Whether it's exploring international destinations or taking a domestic tour, a Personal Loan can make it possible for you to travel even if you don’t have immediate funds.

7. Vehicle Purchase: For those looking to buy a vehicle, a personal loan can be a viable option. It allows you to own a car or bike without having to pay the entire amount upfront, making transportation more accessible.

8. Medical Expenses: Beyond emergencies, personal loans can also assist in covering planned medical expenses such as elective surgeries or other health-related treatments. This ensures that you can prioritise your well-being without financial constraints.

9. Downpayment for house: Buying a home is a big milestone for most people, one that requires meticulous planning and research. Since it is a big-ticket purchase, a Home Loan is the most suitable option for funding a home. But banks typically offer up to 80% of the property value and homebuyers have to pay the remaining from their own funds. In such situations, a Personal Loan is a good option to make the downpayment for the home. This ensures that you can buy the home of your dream and repay at your convenience.

10. Special Occasions: Celebrating milestones like birthdays or anniversaries might require extra funds. Personal Loans offer a convenient way to finance these special occasions, allowing you to create memorable experiences for yourself and your loved ones.

A Personal Loan is a versatile financial too catering to a variety of needs. While there can be several reasons for Personal Loans. It is crucial to assess one's financial capacity and choose a loan wisely, considering the terms, interest rates, and repayment plans.

Benefits of Personal Loan

Repayment through easy EMIs:

Personal Loans come with a defined repayment structure, including EMIs and a fixed tenure, which helps in financial planning. You have the option of repaying via EMIs which can be tailored to meet your finances. By choosing a long or short tenure, you can arrive at the amount that you can repay comfortably every month, without putting pressure on your budget.

Builds a good credit score

Since a Personal Loan is a short-term loan, usually up to 5 years, it is an easy way to build a good credit score. Regularly repaying a Personal Loan can improve your credit score. This is particularly beneficial if your current CIBIL score for loan approval is on the lower side. By borrowing small amounts that you can repay on time and without default, you can ensure your credit score remains high. This will prove helpful when you need to borrow a larger loan in the future, such as a home loan.

Access to larger sums:

Personal Loans usually offer access to larger amounts of money compared to what friends or family might be able to lend, which may be essential for significant expenses.

Also Read: How can you get a Personal Loan online with 6 easy steps?

Conclusion

Axis Bank steps in as a viable partner in this journey, offering Personal Loans up to ₹40 lakh with competitive interest rates. The process is swift, with online, paperless application procedures and quick approval in just 30 seconds, ensuring that your financial needs are met with efficiency and ease.

With flexible tenure options ranging from 12 to 84 months and transparent processing fees, Axis Bank stands out as a trusted financial ally for those in need of a personal loan, regardless of whether you're starting with a minimum CIBIL score for a loan or have a strong credit history.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.