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Why use personal loans over credit cards? Explore situations where personal loans are a better choice for managing expenses and achieving financial goals.
A personal loan is an unsecured loan that offers hassle-free loan processing, instant disbursal, free-to-use funds, and other features that fulfil people's monetary needs.
But now the question remains: why use personal loans over other funding options, and what makes them a smart choice for certain situations?
In this blog, we will walk you through common situations when applying for a personal loan makes sense.
Personal loans can be used for different types of occasions. The following are the two most common occasions for which personal loans can be applied for:
Whether it is the perfect wedding outfit, a stunning engagement ring, or a feast of delicious food, a personal loan can help you fulfil your wedding wish list.
By applying for a personal loan, you can secure the necessary funds to cover these essential expenses and ensure your special day is everything you have dreamed of.
A personal loan can also help you gather the funds needed to celebrate a memorable marriage anniversary.
With this loan, you can book the best banquet hall in town, complete with stunning decorations.
It allows you to organise a beautiful party and invite guests to share in the joy of the occasion.
We all face unexpected emergencies at some point in our lives. This type of loan allows us to raise instant capital and cover the expenses related to emergencies.
When people ask why use personal loans, two common reasons often come up. These are:
When faced with medical emergencies and the need for a significant sum of money, applying for a personal loan is the only way to deal with such situations.
This personal loan allows you to arrange any sudden expense without compromising your assets.
It often becomes difficult to afford renovation costs when it comes to remodelling the kitchen or addressing any electrical hazard.
You can use a personal loan in this situation also to overcome any safety issues and maintain the aesthetic appeal of your home.
Personal loans are also categorised among different groups of people. Here are some common groups who need this loan for different purposes:
To choose the right career path and earn a degree of their choice, students can avail a personal loan.
A personal loan can be useful for collecting funds for education fees or paying off hostel fees.
Moreover, the lower interest on student loans, ranging from 10% to 14% per annum, makes it a feasible option for students in need of financial assistance.
Since women have proved that they are no less than men in taking responsibility, they also need some funding to maintain their finances.
To support their financial independence, several lenders offer benefits on personal loans, specifically for women.
Working women can use this loan to fulfil their long-term commitments without relying on someone else.
While a steady income ensures regular earnings, it does not always provide the liquidity needed to cover all personal expenses.
Moreover, using life savings for large, one-time expenses can disrupt long-term financial stability.
A personal loan for salaried individuals is a practical financial solution that enables them to quickly access the necessary funds.
Financial institutions offer special benefits for government employees when applying for personal loans.
These loans usually have a simple documentation process and fast loan approval, making them a convenient option for government workers needing quick financial help.
The Non-Residents Indians (NRIs) can also use a personal loan to obtain funding while residing in another country temporarily.
They can use this loan to make payments for residence or other purposes.
Personal loans allow individuals to pay off multiple existing debts by combining them into a single loan.
If you are struggling with multiple high-interest loans, you can apply for a debt consolidation loan based on your credit history.
Many people are choosing to purchase used cars with the help of personal loans. But why use personal loans instead of opting for a car loan?
The key reason is that personal loans are ideal for purchasing cars under ₹5 lakh, while used car loans are more suited for buying higher-priced vehicles.
A personal loan offers several benefits and features that make it a preferable choice over other financing options.
Here are some key features that highlight why use personal loans instead of considering alternative solutions:
Besides being aware of why use personal loans, it is also important to check eligibility criteria and other factors before applying for it.
You must check your credit score before opting for a personal loan. Once you have done your due diligence, you are all set to apply for a personal loan.
Get instant loans online via Jar to fulfil your personal needs and avail numerous benefits like flexible EMIs and paperless loan applications.
Fresher funding is a type of personal loan that is used by freshers or newly joined employees. Some financial institutions offer up to ₹1 lakh in fresher funding.
The eligibility criteria for a personal loan is that individuals must be employed and reside in India with an age range of 21 to 80 years.
The foremost important documents are KYC documents, PAN cards, employee IDs, salary slips, and income statements.
Borrowers prefer personal loans since they provide numerous benefits like instant disbursal, no requirement of collateral, minimal documentation, and flexible repayment options.