Taking a personal loan can help build your credit profile with a history of positive repayment. So, when you apply for higher credit in the future, such as a home loan, lenders will treat your application favorably. You would have already established yourself as a low risk borrower.
There may be a number of compelling reasons that may prompt you to apply for a personal loan in India. Whether it is to pay for a medical emergency, go on a dream vacation or even consolidate debt, the open usage of personal loans is what makes them a popular financial product in the country.
Let’s take a look at the top four reasons that are driving more and more people in India to avail of personal loans with every passing year.
Every individual has a set of aspirations that they aim to achieve during their lifetime. It could be something as little as buying a fancy laptop, a home renovation or taking a luxury holiday. A personal loan can help you meet the expenses of all of these aspirational purchases because the majority of Indians live on fixed monthly incomes.
You do not want to dip into your life’s savings to finance these purchases because you also need to think of your sunset years, ensuring that your loved ones are taken care of in your absence. Going the personal loan route helps you to make these purchases that you can pay back to the lender in easy monthly installments.
Therefore, it is not really an additional burden on your pocket at the end of the day. Simply use our personal loan EMI calculator to get an estimate of your monthly installment so that you can factor it into your expense list going forward.
If you have missed a few of your previous loan repayments or credit card payments, chances are that you have already fallen into a debt trap. Using a personal loan to consolidate such debts is one of the best ways to manage such situations.
A personal loan for debt consolidation allows you to bring all your financial liabilities under a single roof and instead of making multiple payouts in a month, you only pay a single lender.
When you get your personal loan approved by your lending partner, the open-ended usage policy does not put any restrictions on how you end up using the funds.
Moreover, getting a personal loan to consolidate existing debt comes with some added benefits. When you shift from multiple loan payments to a single monthly payout, it also helps to boost your credit rating and history. Improving your credit score will help you to secure more credit in the future.
India is going through a start-up phase where young people are opting to go the entrepreneurial route instead of the conventional 9 to 5 jobs. The major challenge in setting up a business in India is to find funding for it.
Not everyone has significant savings that they can put into the business. And family and friends and finance the entrepreneurial journey only to a certain extent.
This can be easily overcome by opting for a personal loan in India. Finkartz's partners offers hassle-free personal loans to eligible borrowers where you do not need to pledge any collateral or security.
Simply ensure that you fulfill eligibility criteria before placing a formal application. You can use our personal loan eligibility calculator to run a quick check on the maximum personal loan amount you may be able to get.
However much you prepare, life, in general, is unpredictable. Therefore, you may come face to face with several such instances where you may not be in a position to meet the financial expenses of the situation.
Be it a household repair, emergency travel, car breakdown or medical bills, there are numerous such examples of unplanned expenditures. Even if you have health insurance in the case of medical emergencies, it may not be wholly adequate to help you meet the entire expense of the procedure.
Getting a personal loan under such circumstances may be the best option rather than dipping into one’s savings. With flexible repayment tenures of 12 to 60 months, limited paperwork and competitive personal loan interest rates ensure that you are well able to tide over these unforeseen short term expenditures.
