Personal Loan by definition and concept does not state exhaustive purposes for which you can take a personal loan. It says any purpose you wish to fulfill and is running short of money; you can apply for personal loan. Personal loan is an unsecured loan, means there is no need of pledging any security in lending Institution’s favor to avail loans and that’s why the Interest rate are bit on higher side. The amount is approved based on your CIBIL score and dealings with the banks you are applying to for loan. It is always advisable to apply for loan in same bank where you have been keeping your active saving account for a long time and have been doing your bank dealings. Here are few instances for which you can take Personal loan:
High Medical Bills- To meet up the unanticipated medical emergencies in family can be one of the instances for turning to a bank to avail personal loan. In a case you have no medical insurance you can avail an economical loan if you have a good CIBIL score and can negotiate with various hospitals and medical institutions since you will be paying in cash and a cash customer always have an upper hang in negotiation and can thus save in high medical bills.
Covering a move- In the age of MNCs where people are holding dynamic roles companies wants them to works in every sphere of organization so that they are well versed with every edge of business which also makes them move domestically and internationally. Looking like to be a low cost affair, it is not the case considering high rate of inflation. While moving, if you are bounded by a long territorial limit you need to first sell of your belongings and buy the new one at new place and this can make your move a costly affair.
Getting Home Improvement Done- House improvement or renovation is a plan which remains in pipeline for years or sometime till marriage of children, because it the last in to do list of any middle class family after doing away with education and household expenses first. This is definitely an affair which can cost heavy on your pocket considering repairs, decoration and refurnishing in mind. This one aspect is ideal to be funded by personal loan rather than deferring it for indefinite period.
Compensating it for Missed Days of Work- Any unexpected family event whether good or bad in nature can make you land in trouble at the end of month when you will sit to put money aside for house loan, car loan, children education and household expenses. This is also suitable situation where cash crunch can be tackled by availing personal loan given the fact it can be availed for a very low amount as well.