If you are in an urgent need of money where you can't afford to wait to save then one of the feasible alternatives is to raise a personal loan from a bank. Essentially, a personal loan can be raised for a slew of purposes which include hosting a wedding, buying a luxury item, going on a vacation and getting the house renovated.
Although what is important for one person may not be vital for the other, however, we try to compile a list of the common reasons for which one can raise a personal loan from a bank or a non banking financial corporation (NBFC). However, before you decide to raise a personal loan, remember to examine the interest rate charged by the lender.
The rate of interest should not be exorbitant. Else, you are recommended to opt for another lender to raise the loan.
1. Organising a wedding: If you have a wedding lined up and are falling short of the money then you can raise a personal loan to meet the immediate expenditure.
Although the loan repayment and interest rate may not be easy to come by, however, wedding typically happens once in a lifetime. And you would not want to compromise the quality of celebration. Would you?
2. House renovation: If you are planning the renovation of house and fall short of money then don't refrain from raising the money from a bank in form of personal loan. Getting a house renovated is an investment by all means. So, it will certainly pay you long-term dividend.
3. Going on a vacation: In case you are planning to go on a vacation, and there is some shortfall then you may take a personal loan from a bank instead of borrowing from a friend.
However, since vacation is not an investment in the real sense of the word, one should refrain from going overboard with personal loan for something as dispensable as vacation. Taking a loan as a top-up, however, doesn't hurt.
4. Buying a luxury item: One more reason for which it is not uncommon to take a personal loan is to buy a luxury item for a loved one. Let us suppose, you want to buy an expensive watch to someone special on her anniversary which is due next week.
Saving money in a week is definitely not an option. Raising a personal loan, therefore, can be an option worth exploring.
5. Miscellaneous purposes: There could be an array of other purposes such as some emergency, shortfall in paying for child's college tuition or to even to meet some unanticipated expenditure.
