The best part of taking a personal loan is that you can use the loan amount for any reason. While applying for a personal loan, one does not have to explicitly mention to the lender the cause of seeking the loan. Whether planned or unplanned, you may apply for a personal loan for the following reasons. 

Reasons to Apply for a Instant Personal Loan:

• Debt consolidation: Imaging having taken multiple loans and having to pay off each of them every month. Then, there may be regular piling of credit card bills, thus, leaving you stressed under recurring financial debt. To get rid of the liability of paying off numerous bills, you may consider taking a personal loan to the tune of total financial debt incurred and then repaying all of them at one go. This will leave you with a single loan that you would be required to repay along with interest within the given loan tenure.
• Ease of application: “For personal loans, apply here” are common advertisements that we frequently come across on the web. Credited by lenders for their customers’ use, most personal loans are unsecured loans and do not require borrowers to offer collateral as security or a guarantor to avail the loan. You may apply for a personal loan by either going to the lenders’ websites or approach the nearest branch with a loan application form. 

• A better alternative than payday loans: Though personal loans come at high-interest rates, it is still better to avail them than opt for instant payday loans that charge one per cent interest for each day throughout the entire loan tenure. When annualized, the yearly interest rate on payday loans is a whopping 365 per cent per annum. Payday loans are easy to get but involve hefty penalty charges in case of default on payment during the loan period. However, most lending institutions do not charge extra in case of personal loan default or foreclosure. To gauge the estimated returns on a personal loan, you may use the personal loan interest rate calculator available online.

• Paying for emergency expenses: Medical treatment is getting costlier, thus, mandating the need for personal loans. Not all people buy health insurance to cover the expenses on their medical treatment. Paying off medical bills is one of the reasons to opt for a personal loan. These medical expenses may include spending on surgeries, in addition, to pay for medications and availing aftercare facility, when required.

• Making added investment to business: The penchant of giving shape to a business idea is common with millennials. However, any business idea, big or small, necessitates some basic investment. While business loans are available, the remaining capital requirement can be supplemented with a personal loan from your choice of lender.

• Dream vacation: Planning a dream vacation with your loved one? Lack of funds may prove to be a hurdle. You may choose to either wait till you have saved enough or apply for a personal loan. If the need for a break is imminent, the loan amount credited to your account can help. However, it is important to estimate the amount of loan that you would require so that you do not borrow more than you require. 

• Destination wedding: Indian weddings are synonymous with grandeur and a lot of celebration. If you have opted for a traditional wedding ceremony, get ready to participate in multiple ceremonies. Functions and observing ceremonies can be expensive. Just because a wedding is an expensive affair, it does not mean that you would postpone it for an infinite period. Statistics shared in the past reveal how a major percentage of personal loans was taken to meet marriage-related expenditure. 

• Home remodelling: You may feel the need to refurbish your old home. Whether you are looking to replace that old roof, install solar panels or construct a new wall, remodel your kitchen or lend a whole new look to your garden area, taking a personal loan can help. Seeking loans from banks for house remodelling is a perfect solution in case you do not have the necessary cash in hand. Assess the estimated costs that would be incurred, decide the amount of loan required and use the personal loan interest rate calculator to gauge the amount of interest that would be charged.
• Buying hi-end gadgets: You may not want to be boxed within the idea of living a moderate lifestyle. The urge to buy a new motorcycle or spend on a costly entertainment centre or gaming computers can be easily satiated with the amount received from a personal loan. Personal loans lend you the advantage to make an immediate purchase instead of having to save for months to make the purchase. Though you may have to repay the loan amount along with interest, it saves you from the pain of having to wait before buying your favourite item.

Additional Read:  Things to Check Before Availing a Personal Loan Online