Funds from personal loans can be utilised for almost any purpose. Some lending institutions will inquire about your plans for the funds, while others simply like to ensure that you can repay it on time. Here are some of the situations when applying for this loan is the best option.
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Medical Emergency
In recent years, the number of people taking out personal loans to deal with medical emergencies has risen. With the instant availability of funds and the option to apply for funds with just a few clicks, personal loans have become the primary choice for borrowers in such a crisis.
Here are the few benefits of taking out this loan for medical purposes to get this better.
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Fills in the Gaps in Your Insurance Coverage
Medical insurance has a number of exclusions. The most common ones are that the coverage does not cover pre-existing conditions, congenital disorders, HIV, and a variety of other diseases. Permanent exclusions apply to these diseases under the coverage. This implies that even if you buy the rider, your policy won’t cover you if you get sick due to any of the preceding diseases. In such situations, funds through an affordable personal loan interest rate come to your rescue.
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Assist you During Waiting Periods:
Your health policy comes with a certain waiting period. It means the policy benefits are available only after the successful completion of that waiting period. Also, different diseases are subject to different waiting periods. Since medical crises are unpredictably unexpected, this clause in your coverage might have a significant impact on your health if you don’t have ready access to finances. And in this circumstance, a personal loan is the best option.
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Manages Hefty Medical Expenses
Even minor ailments can cost tens of thousands of rupees to treat in India. So just wonder how much it will cost to treat serious conditions. The cost of treating cancer, cardiac surgery, or kidney diseases can cost up to a few lakhs. Treating such illnesses will exhaust your savings if you don’t have ready access to funds. However, with an affordable personal loan interest rate, you don’t have to take the stress.
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Higher Education
In India, pursuing your desire for higher education necessitates not just dedication but also a large sum of money. Even basic schooling can cost your parents more than Rs 50,000. So, think how much it will cost them to pursue an undergraduate or postgraduate degree from a good university. Annual fees for pursuing a B.tech, MBBS, or MBA from a respected college can run into the millions of rupees. If you don’t have ready access to finances in these situations, your child’s ambition will be dashed.
Here is how a personal loan can help you.
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Admission Fees:
While taking admission to a reputable college, the institution requires students to pay admission fees other than the course fee. The fee could range from anywhere Rs 10,000 to Rs. 1 lakh. And if you run out of money at that moment, this type of loan might help you out right away.
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Accommodation Charges:
There are several financial institutes where the hostel charges are not included in the course fees. Students also have an option to look for accommodation outside the college campus. If your college is in the metropolitan area, the accommodation charges could range anywhere from Rs 8,000 per month to Rs 15,000, excluding the cost of meals. In such a situation, unsecured personal loans are the best option to choose.
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Transportation Costs:
If you are sending your child to pursue further education in another country, be prepared to spend a higher travel fare. Flight tickets can cost anywhere from a few thousand rupees to several lakhs of rupees. In such a situation, a personal loan acts as a saviour.
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Debt Consolidation
There are several instances that when you applied for a loan a few years back your profile was not that strong. You might have just started your career at the time, or you didn’t have a good credit history. In such circumstances, the loans you have applied for may be disbursed with a high-interest rate. However, if your credit has improved over time, you may be able to use this loan to pay off all of your existing high-interest debts at once.
You can also use this loan to pay off your credit card debt.
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Wedding Expenses:
It’s a sin to think about a big fat Indian wedding if you don’t have enough funds in your bank account. There are numerous costs associated with a wedding. Catering costs, jewellery purchases, venue bookings, and guest accommodations are just a few of them. All of this necessitates a substantial sum of money. However, with the easy availability of an affordable personal loan interest rate, you can simply meet all of these costs.
To Conclude:
Now that you are aware of the personal loan’s applicability, apply for one right away to realise your dreams.
