Life's major moments occur fast, some exciting and joyful. If you are getting married or relocating to a new home, you require extra money. A personal loan can help acquire funds quickly. They'll give you that financial flexibility you require to maximize your important major life events.
Studies show that those who take out personal loans use a large percentage of it to pay for life events. It means that people rely on personal loans to cover almost all projects in their lives. Whether you want to hold a graduation ceremony, travel during this festive season, or welcome a newborn, a loan can give you a helping hand to make these events a success. Below are some of the major life events that call for taking out personal loans. Check them out!
1. When Getting Married
On average, a wedding in India can cost about 20 lakhs to 5 crores, which is estimated to be a fifth of the total income accumulated in one's lifetime. From event planners, fashion designers, and caterers to florists, you need to get an efficient team to make this special day incredible. However, not many people can have such money ready to cover the substantial expenses. If you get the right lender for personal loan, the procedure for getting the funds will be easy and fast.
A marriage loan will help you settle for the many costs, including the wedding venue, food and drinks, flowers, rings, and entertainment among many other things. You may even save some funds for your honeymoon.
2. Purchasing a Car
Ready to purchase a brand-new vehicle and get behind the wheel? Purchasing a car is also another milestone most people would want to achieve before the year ends. However, buying a new car is a major life event that can drain you financially and emotionally. On average, the cost of a new car in India ranges from Rs 3.54 lakh to Rs 4.17 Crore, depending on the car brand. This amount is very high for an average individual.
The good news is that you can buy a vehicle on loan, and many banks and NBFCs offer various options. They offer loans at attractive rates with a flexible payment tenure ranging from several months to 5 years. With an NBFC personal loan, you wouldn't worry about repaying this huge amount at once. You will get your dream car by getting a loan and making payments every month. Know that auto loans are not just your only option. You may also use personal loans to pay for your car.
3. When Relocating to a New Place
Moving to another home to start your next chapter of life is a thrilling experience. No matter the reason for relocation, you will have to consider how you will get there with your possessions.
Let's say you will hire professional movers; the cost of moving, on average, can be thousands of rupees. Moving needs collecting all possessions, boxing them, and making sure they are packed safely. Plus, the transport for moving them. If you rely on professional help, be ready to pay more. Luckily, personal loans can come to your aid as they can help you cover these expenses.
4. Take a Vacation
At this time, it is common for people to become workaholics, where you spend most of your time at your job. However, there is nothing wrong with that as you are trying to make ends meet. However, taking that exotic vacation once in a while will enable you to keep your sanity. Getting a loan to cover the vacation expenses may seem extravagant, but you need it.
5. Sudden Medical Emergency
Emergencies find us unprepared. They come during our worst moments. This is why it's best to put some of your income into the emergency fund every month. At any time, either you or a family member may fall ill or be injured. You will require money to pay for the hospital bills. One of the most likely reasons you might be considering a personal loan is unexpected medical expenses. But keep in mind, you'll have to pay it back eventually.
6. Home Renovation
Many people are also taking out loans to renovate their homes. Whether it is a full home renovation or just an upgrade, a home renovation loan is your best option.
Using a few hundred rupees each month is a more realistic option than spending Rs. 30,000 once to remodel the kitchen. But remember that you will also pay interest while repaying the loan, and renovations might cost you even more. If you're not in a rush, you can save some money over time instead of taking the debt. However, if it's a must that you carry out the renovations quickly, getting a loan is a surefire solution. For smaller expenses, you can use a credit card.
7. Pay for Education Fees
Learning is a continuous process to gain knowledge and skills. It is the only way we can achieve our set goals. However, funds can limit you from pursuing your interest. A personal loan can help. You can use the funds to pay for the fees. But, before signing up for the loan, check other alternatives. See if your employer can sponsor employee professional development.
If you need a career shift, look for the salary you expect to earn after you finish learning. This will help determine if you can afford the monthly payments for the loan with your new salary.
How Much to Borrow?
The flexibility of personal loans is what makes them the most preferable financing option. However, to know the amount of money to borrow, you need to evaluate your needs and understand what you are taking the loan for. If you have a requirement for a small loan, you can apply for a personal loan from private institutions, even though the interest rate of an unsecured loan may be higher than that of secured loans. Secured loans are best for longer tenure with a higher loan amount. However, you need to calculate the expenses before applying for the loan. More importantly, be sure you can easily afford the payments before taking the loan.
