Five ways you can use a Personal Loan

by Kritika Jose I'm a financial advisor with an experience of more

When you get into financial matters with family, or friends the arrangement is usually unofficial. This can lead to problems later on and even ruin relationships.

Personal loans are official, easy and fast. They don’t require you to keep any assets as collateral and they can get processed in lesser time than 24 hours. They’re systematic and require no hassle. If you’re wondering why you could ever need personal loans, then here are some situations in which a personal loan can come in handy.

1. Education: An education loan is generally the way to fund higher education, but you can do it through personal loans as well. You can fund your child’s education abroad or you can take a personal loan in addition to an education loan to fund the expenses involved in sending you child to a new country.

2. Weddings: Weddings are a big deal in India and even a small, simple wedding, with minimum number of guests can easily cost you up to a few lakhs. Marriage loans can help you have the wedding you’ve always dreamt of. People usually borrow money from family to fund their child’s wedding but getting wedding loan in the form of personal loan is just easier.

3. Travel: We often dream of travelling the world, but our income may not always permit that. A personal loan for travel can help you take those international trips you’ve always dreamt of. Vacation loans can give you a chance to take a break from your stress filled life and finally see all the places that you’ve always dreamt of seeing in the world.

4. Medical: Your health insurance is not always sufficient to cover all your medical expenses. Especially when it comes to voluntary procedures such as cosmetic surgeries, dental procedures or any procedures done in order to prevent disease. Medical loans in the form of personal loans can help you fund them all. You can also take a personal loan to fund a prolonged hospital stay, where you’re in constant need of cash.

5. Improving credit score: A personal loan can help you improve your credit score. By taking a personal loan and ensuring that you pay all of it on time you can increase your score. This will come handy when you’re applying for any other loans such as home loans.

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