If you are a new investor and are looking for immediate cash, you can explore the idea of taking out a personal loan. It is one of the most feasible ways to take an unsecured loan to solve your financing needs.
Although the interest rate on a personal loan is usually higher than other loans, the ease with which it can be increased even without any security in return is worth opting for.
Main reasons why one can take out a personal loan:
I. For a wedding: If a wedding is taking place at home and you are short of money, you can apply for a personal loan. Obviously you can’t postpone the wedding. The shortage of resources can therefore be met through a personal loan.
II. Buy jewelry or a luxury item: If you want to buy a luxury item or jewelry, you may consider taking out a personal loan. For example, if you want to give an expensive gift to your partner or friend on the occasion of his anniversary, you don’t want to wait a few months to save the money.
You may therefore consider taking out a personal loan to purchase that gift.
III. Renovation of house: Another purpose of taking out a personal loan could be to renovate a house. For example, you need ₹10 lakh for the renovation and that is all you have ₹6 lakh, it may be a rational move to raise the remaining ₹4 lakh to complete the renovation of the house.
IV. Emergency expenses: An emergency can be of any kind. There could be a medical emergency, or you need money to help a friend who desperately needs money, or there could be something else going on: you might consider taking out a personal loan.
V. Holiday: Although it is not very healthy to choose this, you can even take out a personal loan to avoid having to cancel an important or desired vacation that you have been longing for.
VI. Raising a child: If you have a dependent child who needs to pay school fees, but he/she is too young to take out a student loan, you can alternatively take out a personal loan to meet this urgent need.
(Keep in mind that taking out a loan comes with its own risks. Some caution is therefore required)
