5 Best Ways To Use A Personal Loan In An Effective Manner

A Personal Loan is the most popular type of loan as it offers you great flexibility when it comes to usage. For instance, if you want cash to repay old debts, cover medical expenses, fund your travel or buy a car, borrowing a Personal Loan is the ideal way to go about it. You can avail the best Personal Loan from NBFCs of up to Rs.25 lakh at an affordable rate of interest for a flexible tenor of 12–60 months. You can easily apply for a Personal Loan by providing your personal, financial and employment details online, without the need to pledge collateral.

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Take a look at the 5 best ways to utilize your Personal Loan in an efficient and effective manner.

1) Covering Medical Bills

Healthcare costs can be expensive depending on the surgery or treatment you choose and in case of an unexpected medical emergency, your savings may be insufficient to meet all costs. So, be it a planned treatment or an unexpected medical need, you can tackle each of them without delay or compromise using a quick Personal Loan. Since lenders approve these collateral-free loans quite fast, you can access funds in time for all your medical emergencies.

2) Renovating your Home

You can fulfill your home renovation project by easily borrowing a Personal Loan. Since these activities can be a costly affair as they involve remodeling, buying new furniture, fixtures, and furnishings, getting a paint job done, repairing pipes and the roof, you need enough money to get through your wish list without compromise. Apart from bringing you a hefty sanction, a Personal Loan gives you the option of the Flexi Loan facility. This facility lets you fund even your unplanned home improvement expenses without a hassle. Here, you can withdraw any amount of your choice from your sanction as many times you want. But the interest you pay will only be charged on your used sum and not the entire sanction. Further, you can choose to pay interest-only EMIs and save up to 45% on your EMIs.

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3) Consolidating your Debt

If you have a significant amount of outstanding debt, you can tackle it with a Debt Consolidation Loan. This means that you avail one loan, repay all your existing loans at once and reduce your interest burden at one go! After the consolidation, you will only have to make repayment for one loan, which will free you from the hassle of repaying multiple loans every month. Consolidating multiple loans and credit card dues with one pocket-friendly Personal Loan will give you a chance to rework your monthly finances and will ensure you are left with some money as your savings.

4) Educating your Child

Be it an overseas education or studying within India, education is an expensive affair. It involves paying for the tuition fees, other course charges, hostel fees, and other lifestyle expenses. Adding up the inflated costs may exceed the sum that you may have kept aside for your kid’s education. So, you can rely on a Personal Loan for higher education. Not only will the loan’s heavy sanction help you fund each component of your child’s education without a hitch, but the long tenor of 12-60 months also lets you repay with ease.

5) Setting up your Business

Right now, India provides the ideal eco-system for a start-up to flourish, and if you have a unique idea, but are falling short of funds, you can apply for a Personal Loan online. All you need to do us meet the easy eligibility criteria and then fill a simple form online. Then you’ll get the loan amount in your bank account within 24 hours. This way you can rely on this quick and handy fund when starting your own business.

While these are some of the best ways to use a Personal Loan, you can also use it to travel, pay for wedding expenses, or for any other personal goals you have. However, make sure that you understand the repayment terms, default policies and Personal Loan fees and charges before signing a Personal Loan agreement. Of course, keep the Personal Loan interest rates and the Personal Loan eligibility criteria in mind before you apply. Ensure that you also use the Personal Loan EMI calculator to see your potential EMIs plan repayment better.

Article Posted By : pardeepsharmalView All Articles

Pardeep is an experienced financial analyst, researcher & writer. He has done MBA in Finance. He has worked extensively in the finance sector along with many organizations. He spends most of their time on the Internet reading finance related stuff and love to share my expertise.

Article Source :

http://www.veethi.com/articles/5-best-ways-to-use-a-personal-loan-in-an-effective-manner-article-4154.htm

Keywords :

Personal Loan , Interest rate on Personal Loan , Eligibility criteria

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