Alternative Uses of Personal Loans


There are plenty of reasons to take personal loans for diversified needs. There are many alternative uses of personal loans which otherwise you cannot pay off by using credit cards. They can be used to make credit card payments, debt consolidation, home renovation, relocation expenses, wedding expenses, funeral expenses, going for a vacation etc. The best thing about personal loans is you don’t need collateral, unlike other financing options. In this type of loan, you borrow a specified sum that you need to repay in equal monthly installments, unlike credit cards which might tempt you for heavy expenditures. You can use personal loans for almost any purpose. Here are some of the alternative uses of personal loans

                   Most Common Uses For A Personal Loan

Debt consolidation

One of the basic purposes of personal loans is to consolidate debt. Suppose you have multiple loans by your name or outstanding credit card amount with different interest rates. With personal loans, you can consolidate all outstanding amounts at one place and pay them as monthly EMI’s. It will be easier to settle the outstanding debts in a fixed timeframe.

Home Renovation

A personal loan can be a great financial help if you are looking forward to revamping your house. Whether you want new furniture for your house, want to change the interiors for a fresh look, want to put wooden flooring or set up a modular kitchen, personal loans will bring money to your pocket that you can spend wisely for a home makeover.

Credit Card payments

One of the greatest rewards of using a personal loan is to pay off your credit card bills at the lower interest rates. It means you can get rid of our outstanding debts in lesser time with

Wedding Expenditures

The wedding is something which is a one-time affair and everybody wants to make a big deal out of it at any expense. Personal loans for wedding purpose can be used for various events supporting a wedding such as a flower decoration, wedding trousseau, candid photography, catering etc.

Relocation expenses

Moving from one house to another in the same city is not costly but moving from one place to another can be a costly affair. Personal loans can prove to be really helpful in case of financial scarcity for long-distance relocation for a job opportunity. These funds can be used for packing the belongings, booking a truck and transporting it to a new location. Just be sure that in future you will be having enough funds to repay the personal loan otherwise it can affect you negatively.

Funeral expenses

Funeral expenses are often neglected while discussing the alternative uses of personal loans but on the contrary funerals can be very expensive. You can use the funds to pay for the casket, the funeral execution services, or automotive equipment for transport etc.

Medical expenses

This is one category for which most of the personal loans are taken. There are certain medical procedures which are generally not covered in health insurances and therefore these loans can provide a great deal of help covering these medical expenses. To name a few, dental surgery, cosmetic surgery, fertility treatments, medical travel, aftercare medications can be financed using personal loans.

Purchasing a vehicle

A personal loan can be applied if you want to purchase a four-wheeler that requires heavy expenditure. Most people aren’t rich enough to pay the whole amount in one go so they opt for personal loans and find it easier to pay them off as monthly installments.

Planning a vacation

An average vacation in the same country might not require you to go for a personal loan, but if you are planning for a dream vacation with fancy hotels to stay in and luxurious restaurants to dine in, then definitely you would like to opt for a personal loan as it can cost you a fortune. Just as personal loans help you with your dream wedding, they also can be used to help you explore the places around the world. You can fund your honeymoon or an anniversary celebration using these loans.

Conclusion

While there are numerous reasons to opt personal loans, you should be aware and cautious while applying for them as you will have to pay them back with interest. When you take out a personal loan to plan a vacation or a dream wedding, you are borrowing money from some lenders which you need to repay at a specified time. Personal loans are a great way to make major investments without financial trauma but be sure to use them sensibly.


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