5 Reasons Why You Should Get a Personal Loan
Living on loans was never a good idea till a decade ago, but the priorities and lifestyles have changed. For many new households starting a new life may need an immediate infusion of some capital. This is where a Personal Loan comes handy. Acquiring a loan is not bad, however a person must know beforehand as to what the intentions are, how would the loan be spent and above of all how will it be paid back. Before we start discussing as to why you should go for a Personal Loan, lets first be clear what a “Personal Loan” is?
There can be two types of personal loans: Secured loan, this is when a borrower submits a collateral against the money borrowed. The loan amount for Personal loan against collateral usually have a higher limit. The other is Unsecured loan which does not require a collateral. When a person apply for a personal loan, bank advances the money against the credit history, nature of job, and regular income of the applicant.
There can be several reasons why you should apply for a personal loan, we’ll discuss that in a bit. Before applying for a loan, the applicant must compare loan facilities from various banks. This can be done online and by visiting bank branches nearest to you. It is not necessary that all banks offer the same rate of interest against the money borrowed viz a viz the time period. A thorough comparison needs to be done using comparison websites such as karlocompare.com.pk. You can do it by drawing an excel sheet and come to a conclusion which bank offers the best. Once you have shortlisted the bank, apply for the personal loan.
There can be several reasons to apply for a personal loan, following are some of the immediate requirements for which you should get a personal loan:
Clear your Debts
There is tendency to get as many credit cards as possible. In due course a person either loses track of payments or are not paid at all because of financial constraints. The interest keeps mounting and a time comes when the stress becomes unbearable. Likewise, you may also have some balance amount payable on auto or house loan.
This is a classical case when you should combine all debts and immediately apply for a personal loan and have these small outstanding amounts sorted out in one go. Acquiring a personal loan will enable you to avoid missing payments, reduce interest and you will have only one loan to take care off.
Home needs repairs
Your house needs an upkeep; roof is leaking, plumbing is falling apart, electricity bills are escalating because of old wiring, plaster needs patching and the house needs a new paint job. These are some of the valid reasons as to why you should have the repairs done. Investing in house is not an expense you actually have upgraded the market value. This too is a sound reason to apply for a personal loan and have the necessary repairs done.
Investing in future
You are already a qualified man, with a reasonable and a good job. Have you ever wondered you can bring a drastic change in your career with little investment in getting new skill sets? Few Microsoft Certifications, a diploma in Coding, appearing for F.C.P.S or taking Quick books course, to name a few. There’s no reason to shy away from such investments even if you have to apply for a personal loan. Go for it, who knows you get a good pay raise from existing job or land up in a new company you dream to work for.
Replacing Consumer Durables’
The technology has changed, the refrigerator, air conditioner or the car you have consume double the energy thus escalating your electricity and fuel bills. Consumer durable’ you bought 10/15 years ago are out dated. Its about the time when you should switch to newer technology such as an inverter ,air conditioners and hybrid car. On the face of it may look a superfluous but in reality, you are saving huge amounts of money in the long run. After all you will not be throwing away old appliances you may get a good deal in disposing them off.
In short personal loans help in many ways, the determining factor is how you plan to utilize them and how have you planned to repay such loans.