In the FY18, personal loans accounted for 96 percent of new bank loans according to RBI. Contradictory to the common belief that people don’t really look forward to taking personal loans, this report is quite a surprise for all. Many people commented and shared their views on this growth. While some stated that this shows the rise of private consumption in the economy, others indicated towards the growing household leverage in India.
Whatever the situation is, we can hardly ignore these numbers. Various questions arise, and a crucial one is – what are those reasons which have made personal loans important than ever?
In this article, we will be discussing some reasons ranging from the times when one needs an instant personal loan to the flexibilities that modern financial institutions are offering to customers. Let’s begin!
Funding Education
Nowadays, the quality of education has become directly proportional to the amount of money spent on it. Professional courses require significant investment which most people don’t have. Thus, they prefer taking personal loans. These loans ensure that you don’t have to worry about your educational dreams. This also propels you to do your best so that you can pay back the money easily
Medical Expenses
An instant personal loan is no less than a boon when you face a medical emergency. In cases where people don’t have health insurance, a personal loan can cover their unexpected medical expenses. Over the years, the medical expenses have also gone high, and not everyone has a big balance to get themselves treated at the best hospital. Thus, instant personal loans become important when medical emergencies arise.
Improving Credit Score
Yes, you read it right. Taking a personal loan helps in improving credit score, and this is one of the reasons people take loans. Credit score basically indicates your ability to repay the loan. The higher the credit score, the better your chances of loan approval. In the case when you know that you wish to take a big loan in
Personal Expenses
There are plenty of whys and wherefores for taking personal loans and discussing each one of them will take a lot of time. Thus, we have consolidated them all in this point.
Here are some of the reasons why personal loans are becoming important nowadays:
- Financing a wedding
- Refurnishing home
- Buying luxury items like a car or iPhone
- Taking a dream vacation
- Investing in business
With the surge in the number of people taking a personal loan, financial institutions have also come up with attractive loan facilities that make the process easier than ever. For instance, financial institutions like ABFL Direct offer plenty of personal loans benefits which are as follows:
- Quick Disbursal: You can get instant money in your account for urgent needs
- Online Approval: You can get approval in just 30 minutes
- No Collateral: There’s no need for guarantee or security deposit. Just share a few details and get an instant personal loan
- Hassle-free Application Process: Long processes for loan are old talks; you can apply for it in just a few clicks
- Zero Documentation for Sanction: The process is online and does not require any paperwork
- Flexible Tenure: You can get easy EMI option available on your loan tenure from 12 to 36 months
Read it all? Now you can understand why personal loans are considered quite significant in the present times. So, if you ever need financial help, don’t hesitate to apply for a personal loan. However, do keep in mind that the money you borrow should be paid back on time. It is a responsibility that you take; thus, ensure that you handle it maturely and don’t ruin your credit score with late payments.
