Talking of financial loans, depending on nature there is a specific credit scheme for every need. In simple words, if you need money to purchase a home, you can avail a home loan from a suitable lender. You want the money to fund your business needs, you have an abundance of business loan schemes in the market. To sum up, almost every credit scheme has a defined usage except for Personal Loan. A Personal Loan can be used for anything except for speculative investments and that’s the beauty of Personal Loan which adds to its already immense popularity. Having said that, the applicants need to be rational when availing a Personal Loan and use the borrowed money for genuine needs. Just to give you a gist, below are some daily-life applications of Personal Loan:
1. Debt consolidation: The most common use of the Personal Loan for debt consolidation. However, just make sure the interest rate of the existing debt is higher than that of Personal Loan and you are saving at least a justifiable sum using this strategy.
2. Getting married: Marriage can be expensive, yet inevitable. Therefore, a Personal Loan can be used to cover the shortfalls and cover the expenses of marriage.
3. Medical emergencies: Certain medical conditions are unpredictable and expensive, capable of creating an irreparable hole in your pocket. Not having a health insurance or adequate savings to pay the bills can be a matter of life and death, but having the required eligibility to obtain a Personal Loan can save the day and your loved ones.
4. Financing your higher education: A Personal Loan is a great alternative to finance your higher education or your child’s higher education. Furthermore, using a Personal Loan for financing higher education makes the borrower eligible for tax benefits.
5. Home repair and renovation: A popular way to use Personal Loan is to use the borrowed capital for paying the bills generated against home renovation and repair work. In addition to that, in this case, the applicant can also avail tax benefits.