The Right Time to Take Personal Loan

Right time to take Personal Loan

Right time to take Personal Loan

All of us need money to meet multiple requirements in our everyday life. The invention of new appliances and technologies has increased our needs numerous times. Unfortunately, there is a significant mismatch between the money supply and demand in today’s world. Working professionals try their level best to increase income as far as possible. Despite this, they often face a shortage of money to meet essential requirements. So from time to time, they take personal loans for multiple expenses.

The beauty of such loans is that lenders don’t demand collateral against the borrowed funds. The availability of ample money, flexible terms and conditions, affordable & fixed interest rates, and freedom to use the borrowed money- all these things make people go crazy about online personal loans. So, many people ask- what is the right time to take personalized personal loans? Let’s see.

Personal Loan For Travel

Personal Loan for Travel

A personal loan for travel is an ideal option for all those who love exploring new places now and then. However, we all know that it takes a lot of money to travel from one place to another. Therefore, you need to have sufficient cash to travel within India or any foreign destination. Moreover, the cost of tourism increases a lot if children, family members, colleagues, and friends accompany you during the trip.

Therefore, taking a personal loan for trips can take all your financial worries away. First, have a look at the cash you have. Then, select a location you want to travel to, determine your budget and then apply for a loan. The bank will verify the supplied information and evaluate your requirement for money. If everything is ok, it will approve your application & transfer the approved loan money into the specified bank account.

With this money, you can cover different expenses related to your domestic or international trips, such as booking flight tickets, hotels, food, roaming around a dream destination, shopping, etc. Personal loans for travel are pretty popular among Indians who often visit foreign countries for various purposes. Different Indian banks offer different amounts as holiday loans. In general, you may get tour loans from Rs 50,000- Rs 25,00000 for 1-5 years. Some banks offer insurance coverage along with personal loans. It will protect you financially if something goes wrong during domestic or international trips. The rate of interest applied on such loans varies from one bank to another.

Also Read : Small ticket and flexible personal loans

Wedding Loan

Personal loan for wedding

Everyone wants to make their wedding day unique, vibrant, and memorable. But, unfortunately, a good setting, food arrangement for all guests, jewelry, wedding clothes, rituals, music, and entertainment programs lead to high costs for many couples. Never forget that the average price of wedding ceremonies has already reached record levels ( approx. Rs. 5-10 lakhs). What if you don’t have sufficient funds to host the wedding party?

You can take a wedding loan as per your requirement. It will allow you to get hands-on the much-needed money and organize the wedding ceremony lavishly without worrying about finances. Do some research and analysis and read the loan contract carefully to get the best deals on wedding loans. Your future spouse may need to co-sign for a loan if you can’t qualify on your own. It means that you will both be equally responsible for EMI payments. Such a loan keeps you aloof from social embarrassment and facilitates the successful arrangement of a marriage.

Vehicle Loan

Personal Loan On Vehicle

In India, a vehicle reflects the social status, financial depth, and prestige of its owner in society. That is why more and more Indians save money from their earnings to purchase a dream car one day. But this option is not suitable for everyone as many people want to get a dream car as soon as possible. Different banks and financial organizations offer vehicle loans in India with additional terms and conditions.

First, determine the car brand and budget, considering a few things carefully. If you want to purchase a car for personal use, look for brands that offer vehicles at a lower price tag with all essential features. If you’re going to buy a car for commercial activities, have a look at different models offered by world-famous automobile companies. Their cars are expensive, but they have advanced features and functionalities. Such a car is likely to last longer if you take care of its regular maintenance and cleaning drives.

To get a vehicle loan in India, you need to make some down payment while purchasing the desired car model. The bank will pay the rest amount you ask for. The loan EMIs are automatically deducted from the specified bank account once your salary is credited. A vehicle loan is an ideal way to purchase the desired car model without compromising the quality standards.

Education Loan

Personal Loan for Education

The availability of education loans in India is a boon for many Indian parents who cannot finance the growing cost for the education of their sons and daughters. Moreover, different banks in India offer loans to students who want to pursue higher education in prestigious universities and other countries. With the help of education loans, students can meet higher education expenses, hostels, purchasing study materials, an internship in foreign countries, commercial courses, etc.

We all know that education affects a person’s future life, including their financial situation. That is why more and more Indian parents look for all possible sources to raise education loans. It makes education more accessible to larger sedition of the society and helps us produce more specialists every year. Students don’t have to worry about finances while studying, thanks to education loans.

They can focus their attention on studies and complete the course with excellent grades. Different banks offer education loans with simple terms and conditions, attractive interest fees, and longer repayment tenure. All eligible students can get such a loan after meeting the eligibility criteria and terms and conditions. They can start repaying the loan after completing their education and having a job with regular payments. The initial amount of education loans starts from Rs 50,000.

Also Read : A Comprehensive checklist for first time applicants of personal loans

Home Loan

Home Loan

Many people in India dream of having a well-designed and beautiful home. Because of rising real estate properties, many people cannot accumulate enough money to buy the desired home. That is why the home loan is a boon for such individuals. Most banks promise to pay almost 80% of the total cost of buying a new home if the candidate meets all loan terms and conditions and can pay off the borrowed money.

Taking a home loan will enable you to get a dream home after paying all EMIs successfully. Ample amounts, low-interest rates, tax benefits, no prepayment charges, balance transfer facility, and longer repayment tenure encourage people to take home loans. It keeps you away from paying room rents to landlords, increasing with each passing year. Consultation with loan experts, comparing different offers, and bargaining with banks help you choose the best home loan under your budget.

Personal Loan For Medical Emergency

Medical Emergency

Personal loans for medical emergency are a boon for individuals who don’t have sufficient money to pay hospital bills, buy life-saving medicines, facilitate necessary surgeries, and take care of other medical expenses. In India, people face multiple medical challenges throughout the year, such as dengue, high blood pressure, accidents, heart attacks, diabetes, etc. In addition, the ongoing worldwide epidemic of corona virus has increased the demand for personal loans for medical emergencies.

Both salaried and self-employed people apply for medical loans in India.  Before approving a particular loan amount, credit-lending institutions will look at your overall income and repayment potential. With a personal loan for a medical emergency, you can save precious lives.

Personal Loans For Credit Card Payments

Personal loans for credit card payments

Using a credit card allows you to buy the much-needed goods and services on credit. In India, almost 64 million people use credit cards for different purposes. Unfortunately, when people have credit cards in their hands, they buy goods and services unnecessarily. Careless use of credit cards often leads to the accumulation of pending bills.

People with limited monthly income and lots of financial responsibility often find it difficult to make credit card payments on time. Banks impose heavy late fines on those who default on credit card payments. You can avoid unpleasant situations like this with personal loans for credit card debt. Upon your request, the bank will issue funds that will be sufficient to clear all pending credit card bills at one time.

To Consolidate Your Debt

Debit

People take different loans simultaneously to meet multiple essential and unavoidable financial commitments.  It isn’t easy to interact with varying Banks regarding loan repayment. It would be pretty helpful if you merged all loans into one loan and paid off the entire debt to one banking organization. Many banks in India offer personal loans with debt transfer facilities. Look for such offers and compare them with each other on different parameters. It will allow you to get rid of different loans simultaneously with lower interest fees. It helps you bring your financial life on the right track and improve your credit score remarkably.

So you can say that many situations in our life compel us to take personal loans. However, there are some precautions you need to exercise to impress the banker and get the requested loan amount successfully. Remember that the Indian banks are pretty strict in credit lending activities. They will verify your application from all angles and see the legitimacy of the supplied term before issuing a personal loan. So what are the helpful tips that will help you improve your chances of getting the much-needed personal loan? See the following recommendations.

The Appropriate Loan Amount

Selling personal loan products to many customers is the priority of all banks. The more loan products they sell, the more benefits they earn. However, Bank executives always evaluate your overall income, repayment potential, monthly expenses, and other related factors before issuing you a particular loan amount. They will never give you a loan that is beyond your capability. You must evaluate the requirement for money honestly and apply for personal loans demanding an appropriate amount of money.

Look For Personal Loans With Low-Interest Fees.

The interest fee applied on personal loans varies from one bank to another. Keep in mind that interest rate influences the borrower’s ability to take a loan and repay the borrowed money quickly. If the interest rate on loan is higher, it makes the financial product more costly. As a result, borrowers face difficulties while repaying the EMIs of expensive loans. Therefore, comparing the interest rates of different personal loans offered by multiple banks and other benefits is wise. Using a personal loan with low-interest fees allows you to make loan repayments comfortably without compromising essential monthly expenses.

Maintain A Good Credit Score

Maintaining a good credit score plays an important role when you apply for personal loans and expect a positive response from the banker. You need to keep a minimum credit score of 700-750 to get approved for personal loans offered by most banks in India. Suppose your credit score is below the qualifying criteria. In that case, the banker will ask you to find a co-borrower who guarantees the reimbursement of borrowed money if you fail to honor the loan repayment agreement.

Conclusion

We need money to meet multiple requirements in our everyday life. Sometimes, we have unavoidable financial needs, but the shortage of funds compels us to look for monetary help from all possible sources. Instead of asking for financial support from relatives and friends, the overwhelming majority of individuals resort to personal loans offered by banks.

They can get an online personal loan to tour foreign countries, pay medical bills, renovate homes and apartments, marry their life partner, and cover other necessary expenses. When trapped in financial problems, don’t lose your cool and explore the possibilities of getting personal loans. You can take a personal loan simply by meeting the eligibility criteria, completing all formalities, and agreeing to terms and conditions. Happy borrowing.