Things you can Do with a Personal Loan

Today, you can approach numerous banks and NBFCs to take a personal loan. The best parts about this type of loan? First off, you don’t need to provide any collateral as security for the loan. The documentation process is quite simple, and all you need is a personal loan eligibility calculator to determine whether you’ll be able to get the amount you’re looking for.

Plus, financial institutions and an online loan company don’t ask you any questions as to what you’re going to do with the money. So you can use the money for absolutely anything (legal). Not sure how to utilize the funds from a personal loan? Here are a few ideas to get you started.Educate your KidsYour son or daughter has just finished their schooling, or maybe they’ve just graduated from college. But they aren’t done studying yet.Your child may be on the lookout for opportunities in universities abroad, and if they’re able to find one, you wouldn’t want to stop them from pursuing their dreams. Sure, you’ve saved money for the better part of your life, but what if it isn’t enough? That’s when a personal loan can help you out.Personal loan interest rates are reasonable, and you’ll be able to get large amounts, with which it should be easy to fund your kid’s education. Your child will be in a well-established university and you can rest assured that they’ll be living in comfort while receiving a good education.

Get out of TownIf you’ve been working hard consistently, taking a holiday is the simplest way to get a break from the monotony of things. You may be a little short on funds at the moment, but if you save up a little every month for the next year, you should have enough to fund your trip.But what if you need to get away now? You can always take a personal loan. The same amount you were planning on saving for the trip can be directed toward paying the EMIs on a personal loan instead. All you have to do is plan your entire trip and book the tickets in advance so that you spend as little unnecessary money as possible.Also, you can apply for a loan amount based on the location you’re visiting. So if it’s somewhere close by, you won’t need a huge loan, and you can repay the amount easily over the next couple of months.

Time to RenovateThe walls of your home might need some re-painting, or the bathroom might require extensive maintenance and repair. Often changes like these can’t be postponed to a later date. But what option do you have when you’re short on cash?You can always approach a lender and request a personal loan to renovate your home and make it attractive. Even if you’re planning on remodelling the kitchen or adding some greenery to your front lawn, a personal loan will give you the financial freedom to do so. Later, you can pay off the loan in easy monthly instalments.

Need a Medic? Medical emergencies are commonplace in today’s world, and with the rising cost of medicines and surgery, an emergency could leave you financially crippled.Personal loans guarantee you a large amount of money within short notice. You can take loans anywhere from a meagre Rs. 25,000 to a massive Rs. 25 lakh.So in case you are caught off-guard in a medical emergency, you can always use a personal loan to bail yourself out.

Give Yourself CreditYou can always use personal loans to improve your credit rating and increase your chances of taking another loan.Let’s say, for example, you’re planning to take a home loan to buy property. If you’ve a good credit score, you’re sure to get a large loan amount, along with the benefit of a lower interest rate and maybe even a flexible repayment plan.So to improve your credit rating, you can take a personal loan in the months leading up to your application for the home loan. They’ve got shorter repayment tenures and if you pay off your personal loan by the time you apply for the home loan, you’re sure to get better terms.

Be Debt-FreeDuring certain times of the year (holidays in particular) people tend to swipe their credit cards a lot. If you’re one of them, you know that you’ll need to repay the credit card loan within a stipulated period of time to avoid the massive interest rates.One way to repay this credit card debt would be to take a personal loan and use the funds to clear the loan on your credit card. Interest rates on personal loans are a lot more affordable than the rates that are charged on credit cards. What’s more, you can repay the personal loan over a pre-decided tenure that doesn’t put too much stress on your finances.

These are a few ways in which a personal loan can be utilised. Another great use for a personal loan would be to pay for a wedding. You want your child to have fond memories of their wedding day, and for that, you need to ensure that the ceremony is devoid of any shortcomings.This is difficult without adequate capital, and a personal loan can help you out in this regard. Simply take one and organise a wedding that your kid will be proud of.Taking a loan may look risky, but with the right kind of financial planning, a personal loan can help solve your financial troubles to a great extent.