Do you want to raise money for emergencies or other financial needs? Getting an instant personal loan online is one of the most common and simplest ways to do that! You might be surprised to know that some NBFCs provide personal loans without CIBIL score as well.
However, it’s still wise to learn smart ways to use a personal loan before approaching a lender. This will help you make the most of the money and avoid any potential financial difficulties.
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9 Wise Ways to Utilise Your Personal Loan
Once you’ve determined that a personal loan is a right decision for you, here are 9 smart ways or possible causes for which you can use your loan amount.
Debt Consolidation to Pay Lower Interest Rate
Do you have multiple debts with high-interest rates? If so, you have the option of consolidating them into one personal loan, which costs you the lowest interest rate. This way, you can pay off your debts faster and save the interest money. Also, debt consolidation makes it super easy to manage your debts.
Financial Help to Manage Medical Expenses
A disease or injury often comes unannounced. If you find yourself in need of medical care but don’t have the funds to cover it, an instant personal loan could be a viable option. It can help you cover the costs of unexpected medical bills so that you get the high-quality care you need.
Funds for Home Renovation, Remodelling, or Maintenance
Your home needs repair and renovation from time to time. If you find yourself short of funds, a personal loan can help you cover the costs. This could include any repairs or maintenance needed to keep your home in good condition. You can also think of improving the interiors of your house if you can afford to repay the debt.
A Boost for Your CIBIL/Credit Score
A good CIBIL score can help you get better rates on future loans and make it easier to get approved for credit cards. One way to improve your CIBIL score is to take a personal loan and repay it in time. This reflects on your credit history positively.
Finance for Educational Fees & Expenses
The scarcity of money shouldn’t come in the way of pursuing education and knowledge. Whether you’re looking to go back to school or just need to cover tuition costs, a personal loan can significantly help you.
Arrangement of Wedding Expenses
Arranging money for a wedding is no child’s play. If you’re planning your or a close family member’s wedding, a personal loan could help bear the expenses. This could include anything from venue fees to catering and floral arrangements.
Easy Debt to Cover Travel Expenses
Do you want to go on a vacation but don’t have enough funds to cover the travel expenses? No need to suppress your wonder lust anymore! You can take an instant personal loan. It can help you cover the costs like flights, hotels, car rentals, and other travel expenses.
Payment for Repairing Your Car
It’s inconvenient if the car you use to commute to work daily breaks down. However, if your vehicle is maintained and serviced regularly, the chances of breaking down reduce significantly. A personal loan can help you cover these repairs or maintenance needed to keep the car running smoothly.
Quick Funds for Emergency Situations
It is always recommended to keep an emergency fund aside. But sometimes. It may not be enough to cover an emergency situation, such as a leaky roof at your home or a sudden job loss. You can fill the gaps with an instant personal loan when you urgently need funds to keep going.
Whether you’re looking to consolidate debt, cover medical expenses or go on a vacation, a personal loan can be a great solution. But it’s important to do your research and ensure you understand the terms and conditions of the loan before you sign on the dotted line. Also, don’t forget to analyse your repayment capacity before securing a loan.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at firstname.lastname@example.org