Personal loans: 5 key reasons for which it does not harm to take a loan

Taking a personal loan is not difficult anymore with plenty of options to go around. One can easily borrow loan from a bank, an NBFC or even a fintech platform. But one should be careful about raising a loan since it carries a high rate of interest.

Therefore, one should rather save money instead of relying on quick loan for meeting financial needs. However, what would one do if the financial need is both sudden and urgent. To make things simpler, we present five key reasons for which one can raise personal loan.

5 key reasons for raising a personal loan

I. Emergency: One of the key reasons for raising a personal loan is personal emergency. Let us suppose, someone in family is critically ill or an old friend needs the funds. The emergency could be of any type or form.

II. House renovation: Another reason could be to get the house renovated when you are not eligible for any more home loan.

III. Wedding or celebration: You could raise a personal loan for a wedding or celebration. Since important events and weddings can not be postponed, one could raise a loan to meet the financial needs which occur on these occasions. At times, investors tend to overspend on these events. But when you are spending the borrowed money, you should refrain from overspending.

IV. Urgent travel: Although one should not raise a loan for vacation or travel, one could undertake an urgent travel for which it is alright to take a loan if the money falls short.

V. Higher education: Typically, one could take education loan for higher education but if it falls short, there is no harm in taking a personal loan.

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit

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