What are Good and Bad Reasons for Taking Personal Loans?

Personal loans are given by Banks and NBFCs to solve personal problems and expenses. People all over the country apply for this loan whenever they have any expenses or emergency situations. Banks and NBFCs give this service to salaried individuals depending on their personal loan eligibility.

Once you are deemed eligible as per the lender, then you can apply for an instant personal loan from major banks and NBFCs in India. All you have to do is research on personal loan interest rates and look for a Bank that offers the best terms and lowest rates. 

Over the years, there have been multiple reasons; good or bad for people to opt for a personal loan. So we have listed down a few good and bad reasons that people opt to take a personal loan:

Good reasons:

  1. Education – People opt for personal loans so they can pay tuition fees. Some even pay for higher education abroad. The fees are high and in lakhs. Hence a personal loan does fit the requirement.
  1. Home renovation – Like people need makeovers once a while, your house too needs a makeover once every few years. With home renovation, you can give your house a new look. But this costs a lot and hence you can opt for a personal loan.
  1. Travel – Taking a vacation once a year with a family is considered to be a good exercise. The amount usually ends up on the higher side and hence with the funds from a personal loan, you can enjoy your vacation.
  1. Emergencies – No one can foresee the future and hence when emergency strikes, you need high funds. Medical emergencies are urgent and hence an instant personal loan can help you in such difficult times.

Bad reasons:

  1. Debt consolidation – This term means that you wish to close multiple debts. Although it’s a noble cause, it still means that you are opting for one more loan. Multiple debts are never seen in a good way by Banks!
  1. Excessive Shopping – Yes, there are people who wish to own high-end gadgets and the latest footwear and clothes. These can cost a bomb but with a personal loan, everything seems easy! 
  1. Gambling & illegal activities – If you are looking to opt for a personal loan to gamble money or use it for illegal activities it is considered a bad reason to opt for the same.

Here are some good and bad reasons why people would opt for a personal loan. If you wish to get the best deals on personal loans, apply here!

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