ways to use a personal loan
  • Guide on Various Ways to Make Use of an Online Personal Loan

  • Published By:
  • Category: Finance
  • Published Date: January 23, 2023
  • Modified Date: January 23, 2023
  • Reading Time: 5 Minutes

Featured Image Caption: Ways to Use a Personal Loan

A personal loan is a very versatile financial tool that can serve diverse purposes. From big-ticket items like renovating your home or paying for your education to smaller expenses like purchasing an appliance, personal loans can provide the necessary financial aid during your time. It is no surprise then that several banks and NBFCs offer quick online personal loans at attractive rates and repayment terms.

Here’s a handy guide to help you understand the various ways in which you can make use of a personal loan.

Personal Loan for Education

A professional degree in a reputed institution can be an expensive affair. More so if you are pursuing it abroad. Tuition fees, travel costs, boarding and lodging arrangements, and a higher cost of living all add up to a substantial sum. However, the promise of your child’s future cannot be compromised due to the costs involved. Parents can apply for a personal loan to pay for education-related expenses for their children. Even working professionals can apply for this loan to upgrade their own skills, degrees and certifications, and other training programs to further their career prospects.

A Fullerton personal loan, for example, can get you up to ₹25 Lakhs to meet your educational expenses without the need for any collateral. If you require a higher amount, then you can opt for a secured loan such as a loan against property.

Home Renovation/Construction Loan

India is advancing in all spheres, and with growing income comes growing demands. Today, people take extra measures to improve their quality of life. One of the many ways this is achieved is by modernising your home. Expanding your living space, making it more accessible, remodeling the kitchen and bathrooms, adding automated home functionalities, and installing an electronic security system are some of the popular upgrades people opt for. Not only does renovation raise your standard of living, but it can also increase the resale of your property.

Using a personal loan you can easily pay for the materials, equipment, and labour charges involved in the process. A Fullerton personal loan can cover up to 90% of your overall home improvement cost.

Modern appliances are an integral part of home upgradation. Personal loans can help you here too in buying appliances and gadgets and conveniently paying for them over the selected loan tenor that can range from 12 to 60 months.

Wedding Loan

Weddings are a time for joy and celebration, but they are also accompanied by anxiety. No matter how much you plan in advance, weddings have a tendency of going out of budget. There are simply too many costs involved such as the venue, decorations, catering services, bridal trousseau, clothes and makeup, gifts, photographer/videographer, accommodation for guests, transportation, etc.

One of the many advantages of a personal loan is that it can be used to fund your wedding as well. Wedding Loans from top lenders at competitive repayment rates and terms, such as a Fullerton personal loan, can help you pay for various products and services associated with the wedding. You can even plan the perfect honeymoon trip and pay for the airfare, visa fees, hotel bills, insurance costs, etc.

Medical Emergency Loan

Medical emergencies can befall anyone, and often without any warning. It requires immediate action and payment for services being availed. Many people, in the panic and heat of the situation, end up liquidating their savings. This can cost more in the long term as you lose out on all the corpus you have created to date. Instead, the simpler option can be to go for a personal loan to pay for medical bills, hospital fees, consultation charges, post-op home care installation and renovation, mobility equipment like wheelchairs, etc.

Fullerton personal loans, for example, can be disbursed in a 24-hour period upon the approval of the medical emergency loan. This means that without putting up any security, you can get a substantial amount within a day which you can then conveniently pay back over the tenor of your choice.

Personal Loan for Debt Consolidation

Another smart way in which a personal loan can be used is to consolidate your outstanding debt. Often people end up taking multiple lines of credit such as loans and credit cards beyond their ability to repay. Failure to repay loans and bills on time can adversely affect your credit score. A poor credit score can take years to rebuild and makes it very difficult to avail of any credit product in the interim.

A personal loan at lower interest rates is a great tool to pay off all your existing debt. Not only do you get rid of our outstanding liabilities, you now get only a single EMI to pay each month making your finances more manageable and the chance of missing a payment very low.

If you have a poor credit score already then taking a personal loan and ensuring its timely payment will help you improve it. If you have never used any credit product then your credit score is non-existent. Without a credit, score lenders will not be able to assess your reliability and ability to repay. Using a smaller personal loan and repaying it on time is a great way to build a healthy credit score.

In Summation

Before you apply for a personal loan, carefully explore your options and compare them on interest rates, loan amount limit, repayment tenor options, eligibility criteria, documents required, and the ease of applying. When you do your research, you will find that Fullerton personal loans check all the right boxes with a paperless application process, instant approvals and quick disbursals, high loan limits of up to ₹25 Lakhs, attractive interest rates and flexible repayment tenor ranging from 12 – 60 months.

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