We know that a personal loan is quite easy to apply for. But the question that arises here is – when should you apply for a personal loan? When can they prove useful in helping us out of a crucial life situation? So, here are a few situations when a personal loan can be your financial saviour…
Personal loans are unsecured loans that often carry a lower interest rate than credit cards. Being unsecured, personal loans do not come with the added burden of collateral. They are given by banks solely on the basis of the applicant’s credit history and repayment ability. Therefore, it is important that you maintain a good credit score and file taxes on time.
Personal loans are given to applicants without any questions. So, these can be used for any purpose. Here are a number of scenarios where you might be able to use money from a personal loan:
Home improvement / relocation
Personal loans can be taken for some home improvement projects depending upon the interest rate that you can afford. You can use this personal loan for home repair or for remodelling purposes. You could also use it if you are moving to a new home, which can be exciting but daunting. You could be moving because of your job or other personal reasons. Either way relocating is stressful and can get expensive. In a situation like this, applying for a Personal Loan makes complete sense. It can take care of any urgent expenses that may arise due to your move. Such a personal loan used for home improvement will be like any other unsecured personal loan. The loan amount and the interest rate that you will be charged would depend on your creditworthiness.
Medical emergencies come up at any time, and thus you need to be prepared. There are times when you don’t have adequate savings to meet your medical expenditure. Thus, medical emergencies can take a serious toll on your finances. Even if you have medical insurance, it may not always cover all expenses. This is when you can apply for a Personal Loan. Money is usually disbursed quickly, and a Personal Loan is hassle-free when compared to the financial stress that can come with using up your savings to meet huge medical expenses.
An unplanned trip / vacation
Who does not love to travel? But due to financial limitations, it is not possible to take as many vacations as you would like to, especially if you have not planned it. Sometimes an unplanned vacation cannot be avoided. So how do you go about it? The answer is simple – apply for a personal loan, which can be disbursed to your account in a few hours! With minimal documentation, you can enjoy a hassle-free holiday. Thus, in a situation where you really need a vacation, a personal loan in UAE can come in to be handy and turn your dream vacation into a living reality.
Funds for Education
Education is constantly getting more expensive. Naturally, you can’t let this get in the way of your child’s or your own aspirations. There are a lot of banks that offer educational loans. However, the downside of these loans is the high-interest rate charged on them. Banks also generally fund the education of the students of a few selected and prestigious institutions. Also, there are times when education loans just aren’t enough to cover tuition, relocation costs, living costs, etc. In such situations, personal loans prove to be very helpful. By applying for a personal loan, you are at the liberty to use that money to pay for things such as tuition fees, books, clothes, etc. Thus, a personal loan makes it easy for you to further your child’s or your own education.
Weddings are often considered to be a big deal. A lot of people spend a lot of money on weddings. However, not everyone may have enough money saved. You may have dreamt of the perfect wedding, but to make this dream come true, you need to have adequate finances in place. Personal loans are a good way to fund your wedding, provided that you are getting a good interest rate. There are no loans termed as “wedding loans”, hence, people use personal loan money to fund weddings, too. You can easily avail a personal loan in UAE that can help you manage almost all of the expenditures incurred in a wedding.
Read More:- Personal Loans VS Business Loans in UAE
There are times when one needs cash on an urgent basis and we know that not everyone has the savings for being able to match such emergencies. In a situation like any of the ones mentioned above, taking a personal loan can help quite a lot if you are smart enough.