Here’s how you can save money by taking a Personal Loan

Leveraging a personal loan can help save money. Sounds incredible, right? But it is absolutely true. Personal loans are a great financial tool that are offered at competitive interest rates, which makes them cheaper than other types of loans. Here are some smart choices you can make by using a personal loan to save money.

How personal loans can help you save money
 

1. Consolidate debt
 

One of the smartest reasons to leverage a personal loan is to consolidate your debt, especially credit card debt. Credit cards levy a very high interest rate, and once you are sucked in to it, it is a vicious cycle. Personal loans offer a simple way out of such debt. You can obtain a low interest personal loan and use it to pay off high interest debt. This will help you pay off your loan faster, as well as save money in the process. Moreover, you can also combine different debts into a single personal loan. This makes it easier to pay off debt and allows you to stay on top of your expenses.

Also read: https://www.idfcfirstbank.com/finfirst-blogs/personal-loan/how-to-calculate-bank-interest-rate-on-personal-loan

2. Fund a big-ticket expense
 

When most people want to make a big expense such buy a widescreen TV or go on a dream vacation, they normally use their credit card to pay for the same. Then, if repayment looks difficult, they convert the expenditure into EMIs. In such a scenario, a personal loan is a lot more viable than a credit card. A personal loan is a lot less expensive as you can get the loan at low interest rates. This means you end up paying a lot less overall and save money. The best part about a personal loan is that there is no restriction on what it can be used for – vacation, home repairs, medical expenditure, or shopping!

3. Increase your credit score
 

A personal loan can play a big role in boosting your credit score and also save money! If you max out your credit card every month, it will increase your credit utilisation ratio. This will put you in the lender’s book as a high-risk individual, and you will be charged a higher interest when you borrow money in the future. By using a personal loan to pay off your credit cards, you can improve your credit score. This, coupled with a good repayment history, allows you to demand a more competitive interest rate on your borrowings and helps save money.

Also read: https://www.idfcfirstbank.com/finfirst-blogs/personal-loan/6-tips-on-how-to-get-personal-loan-with-no-hassle

In conclusion

A personal loan from IDFC FIRST Bank is a great way to secure funds in times of need. It offers a completely paperless and instant application process -   - giving you a quick  access to money digitally – whether you need it for an emergency or to fulfil a life goal. IDFC FIRST Bank offers one of the lowest interest rates in the market compared to other personal loans and unsecured credit products. You not only save money on your borrowings, but also get to repay it on flexible terms.

 Get a low interest personal loan from IDFC FIRST Bank today and save money! To experience the digital personal loan application journey, click here .

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.