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We all are facing difficult times right now with salary cuts and losing jobs. The share market has also become very unpredictable. A lot of companies are getting merged and some are losing their equities bringing their share values to zero. Some have also declared bankruptcy. Small businesses are shutting down because they couldn’t bear the losses of over 7 months of lockdown period. 

Even a lot of experienced people are facing unemployment due to this problem. Financial emergencies can be met with a personal loan. A personal loan does not require collateral so it is good news for people who don’t own any property or for people who do not want to risk their properties. 

  • House repair costs – 

    These are the most underrated as they can add up with little renovation changes a lot and there’s no specific loan such as home loans or car loans for house repair expenses. Other than breaking your savings off personal loans can be a great way to take a loan for house repairs. House repair costs are expensive because of the labour involved. Also, you want to use the best material possible because it will not be feasible to do such repairs or remodellings again and again. The furniture also needs to be made of good quality wood and match your interior design which is very costly. Furniture as a whole is very expensive even the cheapest ones cost way more than we think because this is a once in while purchase market.

  • Wedding costs –

    Weddings are always extravagant in India. Such extravagance also cost way more than we think. There is no such designated loan as wedding loans hence to cover up wedding costs you need to take a personal loan. This also makes sense as wedding expenses are not made by only one dealer the costs are spread against caterers, halls, clothes shopping, jewellery, etc. Weddings are a once in a lifetime opportunity so even if we try to bring the costs down it always ends up being more than we think. After weddings honeymoon expenses also add up and travelling always costs more because travel destinations are allowed to charge you more by the government itself considering the areas are remote and locals are heavily reliant on tourists for making money.

  • Vacations – 

    Everyone has their dream destinations. There is nothing wrong with taking a loan to have some enjoyment for yourself. Vacations too end up costing a lot with all the travelling expenses, hotel rent, food costs, and shopping. This requires cash at hand and making payments to different people. A personal loan is a great way to cover up your vacation costs.

  • Credit card debt consolidation –

    Believe it or not, most people get a loan to consolidate credit card debt because personal loan interest rates are way less than credit cards, and rather than having to make a lot of payments towards different credit cards, people prefer to pay just one EMI a month which is of the lower interest rate. While doing so compare all credit card interest rates and personal loan interest rates to make sure that you’re not making just more debt for yourself.

    The biggest advantage of a personal loan is that it can be used for any expense that you want to make. So, if you are going to have big recurring expenses rather than getting two different loans just take one consolidated loan as the second loan might not get approved because of the first loan.

Always remember that all loans come with the risk associated with them and should only be taken if you know that you will be able to pay it back. Make use of an online EMI calculator and calculate the EMI. See if you can afford that EMI and only then apply for the loan.


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