We often come face to face with situations that make us consider personal loans. A personal loan may be the last thing on our minds when we face emergencies. However, with the rise in financial technology firms, we can get a loan online and have it disbursed into our accounts in no time. 

Personal loans are necessary when we have nobody to turn to in times of need. Online lenders have made personal loans accessible with internet-connected mobile devices. So we can have the required amount at affordable interest rates.

Why you may have to consider personal loans

  1. Home renovation

You can apply for a personal loan for home renovation via the ICICI iMobile Pay app. You can use the loan for flooring, remodelling, extension or any other purpose. People with personal loans for these reasons can also apply for top-up loans. 

  1. Debt consolidation

Debt consolidation is using a single loan to offset several other loans. Instead of paying back several loans separately, you make a single EMI over the tenure to pay back your loan. If you are servicing debt on your credit card debt, mortgage, and vehicle – you can acquire a bigger loan to pay off all these debts. Worth noting that interest rates on personal loans are usually lower than on credit cards and vehicle loans. So it’s better to pay off other loans via a personal loan and save on interest costs.

  1. Family emergencies

The family car suddenly breaks down. The storm rips off the roofing. A family falls ill or gets involved in an accident. You need to relocate your family from one city to another on short notice. Whatever family emergencies you face, a personal loan can be your panacea.

  1. Vacation trips

You promised to take your family on a vacation trip, and now the time is here, and you are low on cash. What do you do? Take a personal loan. If you have a good credit score and a proven source of income, you will get a loan for your vacation quickly. A vacation loan may be applied towards car rental, hotel reservation, park tours, and local guides.

  1. Business startup

One of the major challenges facing entrepreneurs today is business capital. Many entrepreneurs have viable ideas that can revolutionise the world but lack the finances to set up a business. In this regard, the best way to go is to consider a personal loan for Business. The ICICI Bank InstaBIZ for Business may be what you need to get your business off the ground or to scale an existing business enterprise. 

  1. Wedding activities

Personal loans may be very helpful for wedding expenses. Wedding activities involve ceremonial dress, event venue, entertainment and refreshment, and registrations. These things cost money, and you may need help along the way. 

  1. To improve credit score 

You can also apply for a personal loan online to improve your credit score. A credit score shows how responsible you have been as a borrower. A good credit score can allow you to get loans at better interest rates. Paying back even a small loan promptly can boost your credit score, significantly increasing your chances of getting a loan of higher value at better interest rates. 

Important factors to consider for personal loans

A personal loan may be secured or unsecured, and it is best to consider all options before applying. Here are some factors to consider before taking out a loan – 

  • Your ability to repay without defaulting.
  • The reputation and credibility of the desired lender.
  • The wisdom of taking additional loans in the face of existing debt.
  • Consenting to the terms and conditions guiding the loan.

Finally, being qualified for a loan does not indicate that you must take it. Your reasons for considering a loan must be fully justified before taking it.

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