10 Unconventional Ways you Can Utilize Personal Loans in 2021
After the unprecedented year 2020 ended, everyone has again tightened their reins, and have started their approach towards fulfilling their never-ending desires, but the greatest obstacle each one is facing during these tough times is the accumulation of sufficient funds, therefore, here in this blog, we take you to a smooth ride of how you can consummate your wishes without giving them a toss or delaying them, with the help of availing personal loans which can be considered as a lifesaver opportunity for those who really dream big and want to create an empire of their own in a short span of time.
This unsecured loan is extended by numerous financial institutions across India including traditional banks, NBFCs, and fintech lenders. It facilitates you in bridging the gap between your requirement of cash and the cash you have in your hand to meet your present financial needs.
A lender will consider multiple factors before extending you a personal loan such as your credit history, your relation with your bank(s), potential income, and creditworthiness.
Its simpler availability feature, quicker application procedures, and its unsecured nature make it a major take away to go with. Here are 10 unconventional ways you can utilize personal loans for:
1. To finance traveling
Traveling is an opportunity to relax and abstract from everyday busy life. Therefore, a much-needed break can be availed easily with help of a personal loan, thus, without pinching your pockets you can just breathe your vacation in a stress-free mode.
Availing a personal loan can be a good choice to back your vacation rather than saving for years to travel your dream vacation.
2. To establish a new business
To establish a new business after taking a seat back in the last financial year of 2020, here is the time when you can easily capture your dreams of creating a new venture without giving a thought about how will you accumulate funds for pursuing your dream into reality.
Yes, you heard it right, now easily you will be able to accomplish your dream project by just availing personal loan which you can get in jiffy. No more delays, no more cancellation of living your dreams, personal loan will help you in all situations and help you in enabling your business projects to get endeavoured with great zeal.
3. To make a wedding elegant
Indian wedding reflects the culture and heritage of India, marriage is considered a pious ritual in India. But on the other side, to have such a grand galore we need to have strong finances, but what if people do not have a handful of money, therefore here personal loan can really bring back those smiles and calmness on their faces by extending them relief of joy for fulfilling their desires of having a perfect wedding.
4. To get rid of credit card dues
Credit cards are popular for getting and using credit easily to pay for big-ticket expenditures. Although, simultaneously, the use of funds via credit cards is also a costly affair. Contrary to this, you can utilize a personal loan to repay the dues of your credit cards and attain benefits in terms of interest rates.
Once you repay the credit card debts, you can continue to avail the facility of the interest-free duration for your potential transactions which are not available in credit cards.
5. To partly finance a new home purchase
Acquiring a home is a big-ticket expense and people typically take out a home loan to finance such expenses. Nevertheless, similar to other need-driven loans, financial institutions including banks, NBFCs and fintech lenders consider it hard to sanction a home loan for 100% of the property's worth.
So, even if you apply for a home loan, the particular financial institution will generally extend you around 80% of the total worth of the property for which you are seeking to avail the loan. You’ll have to pay down the rest amount from your own funds and this is where personal loans come to safeguard you.
You can consider taking a personal loan to make the cash-down payment or the stamp duty charges on the property’s registration. You can also claim tax benefit on the interest amount on such personal loans when you utilize it to partly fund your needs.
6. To revamp your house
With the constant increase in the costs of construction and hardware, applying revamping to your house can be a tricky affair. While repairing a house might be an alternative in most events, it becomes significant sometimes when the house structure is not so healthy.
In such situations, big-ticket expenses rise and they are inclined towards hampering one’s financial budget. If you are having such a situation or ever face so alongside the lack of funds, consider availing a personal loan to support the revamping of your house. Additionally, you can also get tax benefits on the interest section up to Rs. 30,000 p.a. on such personal loans.
7. To come out of the medical crisis
Usually, it’s suggested to get health insurance for yourself and your family as it helps in coating the high medical costs and your monthly budgets.
Nevertheless, if you have not taken that or due to any other reason where you have run out of funds during a medical emergency, personal loans can help you to confront. You can meet the cash requirement for any crucial surgery or another kind of medical expenses.
8. To finance children’s education
Education loans can help you fulfill the college fees of your child but there are numerous auxiliary activities related to the admission process and further throughout the course that do not get funded via education loan.
This is where personal loans play a role of a better financial companion. Personal loans will help you meet such expenses. So, if you are among those parents who believe in extending a good education to their children, you must not compromise with funds.
9. To acquire a new gadget for home
There are certain gadgets that you must be musing to acquire for a long time to put elegance into your home or you might be around a time where you compulsorily have to acquire that but that is currently beyond your budget, consider availing a personal loan.
10. To celebrate remarkable life events
The process of earning money will remain to continue throughout your life but there are several remarkable life events, once those take place that doesn’t occur again. Therefore, you should also consider gathering and creating the precious moments of your life.
But we also understand that some of the remarkable life events such as silver anniversary, child’s birth, etc. take place in an opulent manner and you may not have a budget to cover those.
In such circumstances, you may head towards a personal loan. It will facilitate you in softening your savings.
Additionally, leaving with a recommendation in this last unconventional way to use personal loans; such events in life are only a few so do not let a temporary lack of funds affect the way you’ll wish such events to be relished.
Personal loans are a simpler and instant alternative of availing funds to coat the temporary shortages in cash. But you must also be careful to not go deep into the sea and avail a personal loan for an amount you cannot gradually repay with your current and potential incomes.