With the continuously and dynamically changing lifestyles, income and preferences of people all over the country and world, another thing that has been witnessing a gradual change in people’s spending habits. More often than not, people prefer to go by the motto of living in the present instead of leaving everything till their retirement and later future. And it doesn’t matter how much financial planning you do in life, numerous uncertainties can come up and strike anytime, thus raising the need for urgent funds to fulfil the financial shortfalls. To tackle such cases, taking a personal loan can indeed be a saviour and come to your rescue.
As numerous banks, fintech and NBFCs are there to compare and choose from. You can surely get one of the best loan deals for different loan amounts like a 5 lakh Personal Loan or 10 Lakh personal loan.
So let’s discuss some of the crucial life goals as well as reasons for which personal loans can turn out to be a saviour and a helpful credit option to meet financial shortfalls:
Medical Exigencies and high bills
One of the most commonly faced life exigencies or adverse life situations wherein many people require loans as big as 10 lakh Personal Loan is for medical expenses. With medical costs, whether for hospitalization, tests, medicines, etc. skyrocketing many times and being able to eradicate one’s lifelong savings too, taking a personal loan can bail them out by providing urgent funds. No doubt there is the presence and help of medical insurance for such scenarios, but for those whose medical cover turns out to be inadequate for the medical expenses or those who do not possess medical insurance itself, urgent need of funds to tackle such medical exigencies can be taken care of by going for a personal loan of the required amount. Moreover, even for those who have medical insurance, it might not cover everything or all expenses, therefore making it even more likely that the need for funds such as a 5 lakh Personal Loan might arise.
Marriage is a part of everyone’s life. Everyone plans to get married someday and enjoy that beautiful new stage. It’s indeed a special occasion which mostly happens once in a lifetime for people, thus making it a dream come true for many who aim to celebrate it in a grand way. All this results in a big chunk of money required for wedding expenses. And with the trend of destination weddings too picking up, costs are no less than in lakhs of rupees. So, for those requiring money, if the corpus is not built or got used somewhere else, at least a 10 Lakh personal loan would be required for wedding expenses.
Even for smaller weddings, one can easily avail a 5 lakh Personal Loan subject to their loan eligibility and repayment capacity and repay it through comfortable EMIs as per chosen tenure.
Home construction and renovation costs
More often than not in our country, lots of people tend to purchase a plot of land or already have one inherited from ancestors. And to utilize it for extra income, they intend to do home construction and later either rent it out or may even sell it. Sometimes they can themselves plan to live in it too, depending on their choice. In some cases, even existing homeowners might decide to renovate or repair their homes. For all such purposes, whether it’s construction or renovation, borrowing funds through around 5 lakh Personal Loan is something which can be a suitable way to fund these costs, especially because it involves quick disbursal without any collateral or security requirement, besides no restriction on end usage of loan proceeds.
Travelling and holiday expenses
Over the past decade or so, dynamically changing lifestyles and shifting priorities amongst various generations, especially the younger ones in their 20s & 30s, has resulted in making them live life in the present instead of compromising the present for an uncertain future. Hence, many people now aim to break free from their day to day monotonous or mundane lives and go travelling more and more. Especially post covid’s outbreak, work and travel have even been able to go hand in hand. And to fund their vacation, travel and stay expenses, the younger generation does not shy away from taking a 10 Lakh personal loan, especially for abroad trips or multiple domestic trips. With key features in the form of quick disbursal of funds without any requirement for collateral/security and zero restriction on end usage of availed funds, personal loans have turned themselves into a conventional loan option for funding travel expenses for many.
Absence or inadequacy of emergency fund
It doesn’t matter how financially stable you are, one thing remains the same in life, that is the importance of an emergency fund. It’s always advisable to maintain an emergency fund whose primary aim is to deal with unforeseen financial exigencies which are capable of temporarily impacting your income inflow for some months. But remember that failure to maintain an adequate contingency fund for rainy days or exhausting an existing emergency fund is not the end of the road, as you can take a 5 lakh Personal Loan to fulfil urgent monetary requirements. With quick disbursal, minimal documentation, zero restriction on end usage of loan proceeds and absence of security or collateral requirement, even a bigger loan like 10 lakh Personal Loan can assist one to tackle such exigencies and financial shortfalls in life and repay it in comfortable EMIs too.
Varying business expenses
For the entrepreneurs bitten by startup bug or existing business owners and entrepreneurs in our country who often need funds for varying business purposes like working capital expenses, business expansion or capital, taking a 10 Lakh personal loan can be their saviour most of the time, provided they satisfy the loan eligibility criterion laid by the lenders/financial institutions. Moreover, when compared to other loan options like business loans, personal loans are usually easier to avail, mostly involve lower interest rates, simpler process, minimum documentation, no restriction on end usage, and last but not least, they are collateral-free loans which can be comfortably repaid in EMI form as per chosen tenure and amount.
Funds for higher education or additional course
Pursuing higher education, whether in India or abroad, is amongst the numerous crucial life goals for which personal loans can be a handy credit option. This holds especially true because, even though education loans are there for this purpose of funding education expenses, most of the education loans from banks and NBFCs, require security in the form of guarantor/co-applicant or collateral fulfilling, which is often not possible for many higher education seekers. Thus, to adequately meet the financial shortfall of funds required to complete your higher education studies, take a personal loan whose amount would depend on your course’s fees and other expenses related to the completion of the degree or course. This ensures that your studies do not get halted due to lack of funds and/or lack of security/collateral to put forth for otherwise availing an education loan.