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The popularity of personal loans has increased over the years and is now the preferred choice for middle-income Indians. A personal loan is not difficult as it can meet the varied needs of people in financial distress.
Personal loans are unsecured loans that are extended to eligible borrowers to cover the cost of making timely repayments. They have a low-interest rate and a flexible repayment term to meet various needs such as higher education, marriage, debt consolidation, home renovation, or medical emergencies.
These are the most popular types of personal loans and their significance:
- Web Design Loan
India weddings are expensive. We all want to make this an unforgettable event in India. Many people see this as a need in financial times and seek out an unsecured personal loan for weddings. Many lenders are available to help them improve their features and offer attractive interest rates.
A family member can apply for a loan to pay the bride, groom or other family members. The loan could be tailored according to your needs. A wedding loan can be obtained at an affordable interest rate and with a repayment term that suits you, without the need for collateral.
- Travel Loan
Everybody loves to travel to their dream destination. It doesn’t matter if you are looking for a romantic getaway, a family vacation to a mountain country, or a trip to a remote island with your spouse; everyone wants to visit their dream destination. A holiday comes with costs, such as train tickets or plane tickets, accommodation, meals, tours, sightseeing, transportation, and many other expenses.
Some loans can be used for holiday expenses, also known as travel loans. These loans don’t require collateral and are therefore very easy to obtain. To qualify for your loans, you will need to provide basic KYC documents and income documentation. That’s it!
- Education Loan/Personal Loan for Education
The Education loan has been around for many years. Many NBFCs offer education loans with affordable interest rates and simple online applications. Every parent wants the best for their child. An education loan can be used to fund your child’s tuition fees or study abroad. An education loan can be used to finance your MBA or for additional degrees or diplomas to help you grow your career.
- Home Renovation Loan
A home loan is very similar to an education loan in India. It can be used to buy a home or rebuild a house. We tend to delay renovating our homes due to excessive spending or compromises on many things. Home improvement loans can be offered to help with the cost of refurbishing, purchasing materials, and labor costs. This loan not only gives our homes a new look but also increases the market value of any real property.
- Medical Emergency Loan
A health emergency can strike without warning. A financial crisis and an urgent health problem can put us in serious financial trouble. A medical emergency loan is more important than our savings. A personal loan to cover a medical emergency can be used to pay unexpected medical expenses. This money can be used to pay for hospital bills, doctor’s charges, or expensive medication.
- Consolidation Loan
A personal loan to consolidate debt is an unsecured loan that you can use for high-interest debts. Consolidating your debts can help you pay off credit card debts and reduce your monthly payments. It may help you save time and money depending on the number of your loan terms. You can consolidate your debts with unsecured personal loans from many lenders. You can apply quickly and get approved for a loan.
