Reasons why self-employed individuals opt for a Personal Loan

Personal loans are a proven way to address expensive events. Here are the common reasons why people take a personal loan

Personal loans can help finance many things, but people use it for a few common reasons. Higher education, emergencies, and debt consolidation are the popular reasons for taking a personal loan. Personal loans are usually unsecured and repaid in monthly instalments with interest. To establish personal loan eligibility, most banks consider your creditworthiness and other variables.

You should constantly consider the aim of a loan to see if you need to borrow money. There are different types of personal loans people avail of.

Here are some of the top reasons people use a personal loan.

Personal loan for business

Before a new company gets equity and debt finance from investors, it requires seed funds to conceptualise and show its business model. Personal loans can help new businesses because they can be obtained with minimum trouble and without collateral. So, if you have a vision, start with a personal loan for business.

Personal loan for marriage expenses

Marriages in India are great, but also expensive. We have a habit of overshooting our budget at weddings, which affects financial planning. Instead of being financially stressed because of spending too much on a wedding, one can apply for a personal loan for weddings to cover the costs of the ceremony. The money can be paid back in easy monthly instalments.

Personal loan for education

Although you may have focused on your child's professional ambitions and made regular deposits toward them, the rising cost of education may leave you short on funds. In such a scenario, you can take out a personal loan for the education of your child and ensure that your child is accepted into the preferred college and stream, regardless of financial restraints.

Consolidate debt

Debt consolidation is a popular reason for taking out a personal loan. You combine your outstanding liabilities into one EMI when you apply for a personal loan and use it to pay off several other loans or credit cards dues. Such a categorisation of debt makes it easier to determine a realistic time frame for paying off your debts without being overwhelmed.

The lower interest rate is an appealing feature of a personal loan. It reduces the amount you spend on interest and the time to pay off your loan. Combining your debt allows you to pay your credit cards and other debts over time with a defined end date. The key here is to move your debt to a financial institution that priorities you and your needs.

Apply for Personal Loan

These are just a few types of personal loans available in the market today. If you are thinking of applying for a instant personal loan, you can find all the details for it online. A good place to start your research would be IDFC FIRST Bank, as they offer competitive rates of interest and easy EMI options. It helps in paying back the loan amount. Another reason to choose IDFC FIRST Bank is their simple application process, which enables you to get your personal loan online in a paperless fashion. If you have a need that a personal loan can fulfil, do not stop yourself from actualising it. For an online personal loan application process, you can use some of the best lending apps, such as the IDFC FIRST Bank’s Mobile Banking App.

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.