8 Reasons People Take out Personal Loans

Personal Loans are collateral-free loans that borrowers can use for various reasons, such as debt consolidation, large purchases, fulfilling desires, or emergency expenses. These loans have no end-use restrictions and come with attractive interest rates and flexible repayment terms.

Borrowers can repay them in monthly instalments over a few months to years. Some popular reasons people take out Personal Loans have been discussed below.

  • Go on a Vacation

Travelling to new locations from time to time refreshes the soul and breaks the monotony of daily life routines. However, it is only sometimes prudent to save money from earnings and spend them on vacation expenses.

A Personal Loan for travel allows borrowers to cover all expenses and pay their costs in easy EMIs. Borrowers can use it for any travel-related expense, including flight tickets, hotel accommodation, sightseeing, adventure activities, shopping, etc. It lowers the overall financial burden and makes vacationing easier for travel enthusiasts.

  • Renovate or Repair the House

Homeowners need to renovate and repair their houses from time to time to keep them in optimum condition. They can change the architecture according to their family needs or the latest trends. A home renovation loan provides the funds to renovate or repair the house as needed and pay its cost in EMIs.

  • Cover Wedding Expenses

Indian marriages are grand celebrations, and family members often splurge on the festivities. However, marriage expenses often go out of budget while planning the celebrations.

Last-minute expenses may also arise that wedding hosts need to address immediately. Instead of feeling stressed about the costs, take a Personal Loan for a wedding and systematically pay it in monthly EMIs. Many couples also take Personal Loans for travel in India to fund their honeymoon.

  • Consolidate Debt

Handling multiple debts simultaneously is hard on the pocket. High-interest rates and late payment charges make them expensive debts that are difficult to repay. It also affects the individual’s credit score negatively. Taking a Personal Loan for debt consolidation helps easily manage the loans and save money on the interest cost.

  • Pay Medical Bills

Individuals might need an emergency procedure to handle a medical condition or improve their quality of life. Some also opt for a selective medical procedure like cosmetic surgery, dental implant, or IVF treatment to fulfil their desires.

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Since insurance plans do not cover all procedures, a Personal Loan for a medical emergency is an excellent funding option. It has no end-use restrictions, allowing borrowers to use the loan amount for any therapies, procedures, or surgeries they want. Many people also take a Personal Loan for travel if the patient needs treatment in a foreign country.

  • Finance Big-Ticket Purchases

Eligible applicants can avail of Personal Loans to fund big-ticket purchases like gadgets and electronic appliances. Whether an individual requires a new refrigerator, laptop, smartphone, or television, taking a Personal Loan is a better option than paying its cost upfront. It divides the purchase’s cost into monthly instalments, improving the buyer’s spending capacity and making it easier to repay.

  • Higher Education

While parents always prioritise their child’s career and make regular savings for their education, the ever-increasing education costs often cause a deficit in the financial goals. A Personal Loan for education bridges this deficit and funds a student’s admission into the desired stream or college. It does not allow financial constraints to interfere with their education and career goals. Many also take a Personal loan for travel in India to travel to foreign countries for education or meet their kids studying in another country.

  • Improve Credit Score

The credit score is a significant 3-digit number for loans and other credit types. Those with a low credit score may take a Personal Loan to improve it with regular EMI payments. Repaying the Personal Loan on time establishes good credit history, demonstrating higher creditworthiness to future lending institutions. 

While Personal Loans make great sense for many, aspiring borrowers must evaluate their finances and improve credibility to get the best loan offers. Those with a high credit score get the lowest interest rates, high loan sanctions, and longer repayment terms than others. 

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Take a Personal Loan for travel, a wedding, home renovation, or any other purpose at competitive interest rates, and pay for the intended expense in convenient EMIs. The best way to take an instant loan is to apply with a reliable lending institution like Clix Capital – well-known for providing personal loans online with minimal documentation and quick approval. 

About the Author

Amaira Sharma is a finance expert and former business growth strategist who has more than 8+ years of experience in the industry, now she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses. 

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