Different Ways Of Using A Personal Loan In Unique Ways

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A personal loan is the best solution to meet small financial goals. Personal loans are offered by various banking and non-banking financial institutes. Personal loans are easy to apply and offer quick sanctions. 

A personal loan can be used in various ways for various purposes. Let us go through some unique ways of using a personal loan. 

  1. To finance a Wedding: In India, weddings are a big deal. Weddings bring families together and also encourage blending cultures. It is the most awaited day in people’s life. Personal loans can help people in arranging their own marriages and also funding weddings of our near and dear ones. 
  2. Financing a Vacation: We work so hard that we can travel around the globe whenever and wherever we want. ‘World Tour’ is a dream of millions. Personal loans make it simpler and easier—personal loans aid in fulfilling our dream of travel with our friends and families.
  3. To Renovate or Repair Home: One can use personal loans to finance the repair and renovation of their house. According to current tax laws, one can also take advantage of a tax deduction on interest on such personal loans, but the amount of tax benefit is limited to the interest of Rs. 30,000 per year.
  4. To write off any credit card debts: Credit cards make funds easily available to the cardholder. But, credit cards may tempt you to spend more or spend on unnecessary things, which may result in huge credit card bills, and you may end up in credit card debt. Interest on outstanding credit card bills is much higher. Personal loans can come to your rescue. You can avail of a personal loan to clear out any credit card dues
  5. To fund your business: Being your own boss is definitely a will that rests deep inside our hearts. Setting up a new business is a task, gathering funds, purchasing office stationery and furniture, advertising and promotion of the new venture. Personal loans can help you in setting up furniture and office equipment. Since personal loans can be easily availed, you can set up your business faster and efficiently. 
  6. Medical Emergencies: The current coronavirus pandemic has opened our eyes to life uncertainty. It is so important to have health insurance and life insurance. When you face medical emergencies, you don’t want to face any financial crisis. One can make use of personal loans for medical purposes like curing a disease, treatment for accidents, paying for health insurance and life insurance, etc.
  7. To buy electronic gadgets: In today’s era, work from home is a way of living as we are fighting against the coronavirus pandemic. Work from home is not as easy as it seems; you need all resources like a computer, laptop, phone, mic or any other electronic gadgets. Electronic gadgets are expensive, and one may not have all the funds to purchase them. Personal loans can also help us in purchasing electronic gadgets.
  8. For children’s education: Education is a non-negotiable basic need. People want their kids to study in the best school, university or college. Education can be expensive for some parents. Parents can choose a personal loan to meet small requirements in their child’s education like buying books, paying school fees, travelling to schools, etc. 

Personal loans are a quicker option when applying for a loan. Personal loans are provided by various banking and non-banking financial institutions in India. Some of the top banks with their Personal Loan Interest Rate are mentioned below – 

1. RBL Bank 13.99 %
2. Syndicate Bank 13.40%
3. Canara Bank 13.00 %
4. Karur Vysya Bank  12.00%
5. Federal Bank 11.49%
6. IDFC Bank 10.49 %
7. Axis Bank 10.49 %
8. ICICI Bank 10.50 %
9. HDFC Bank  10.50 %
10. State Bank of India 9.60 %

Factors affecting Personal Loan Interest Rate include Credit score, Income, Repayment history, Existing relationship with the bank.

In this way, we can put a personal loan to many uses, which would help everyone to maintain their finances. Personal loans are a quicker and smarter option for funding the shortfalls in cash. One needs to be cautious to not go overboard and get a personal loan for an amount that you can pay off.

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