Where Can I Use My Personal Loan?
Consumer banking in Pakistan has grown manifold. The induction of credit cards, auto loans, home loans and personal loan received a big welcome from the public. In all the loans category personal loan is relatively easier to get in Pakistan. Acquiring personal loan in Karachi is even more convenient as the public here is more literate and may already have some other financial product. This means banks have already done their KYC and most of the background check is already complete. As a practice bank advances this loan on a personal guarantee if the loan amount is not huge. Otherwise, bank may also ask for a collateral if the amount is somewhat huge.
Usually when a person applies for a personal loan likely are the chances he is well aware where the money will be spent. Though there is no compulsion from the bank as to where the money is to be spent but as a note of caution it is strongly suggested to use personal loan towards where it is safe and helps to increase some sort of an asset. Using personal loan for vacation, wedding or throwing a large anniversary or any other such superfluous expense can land the person into debt trap and unnecessary stress. In addition to this evaluate your need in numbers; how much you need? How you plan to pay, does your income justifies the loan money? And for how long the loan you need the money?
The scope to utilize a personal loan in Pakistan is pretty large. Just to have a wider view how a personal loan can be used in the best possible way, some of the areas are discussed below:
- The best use of a personal loan in Karachi or in fact in the whole of Pakistan is to top up your budget for the property you intend to buy. With this additional amount you can either go for a bigger house or good locality. In the beginning it may look as if your money is stuck but in actuality with increase in the property value your investment is making more money
- Renovating your existing house or adding another floor to your property is also a great investment you can make through personal loan. In both cases; renovation or an additional floor, increases the value of the property. This can also be seen as an increase in wealth which can bring in more money if the added floor is rented out.
- If you own a car that goes to your mechanic more then it takes you to your office, it’s time to think in numbers. The maintenance cost can be significantly higher then what you may have to pay as a mark up against your personal loan. Sell your old car and supplement your budget for the new car with personal loan. This too is an investment that saves you huge amount of money in maintenance and running after cabs
- Another way a person can fully utilize a personal loan is replace old household items with new technology energy saving gadgets such as invertor air conditioner and refrigerators, solar panels and LED light lamps. Once these household items are replaced you will notice a drastic downward change in your electricity bill. Though it may look unnecessary expense but in actuality saves huge amount of money each month
- Because of ill planning, and no financial acumen many people pile up loans on credit cards. The interest on unpaid bills keep mounting and a time comes when the stress becomes intolerable. The mark up rate on credit card is generally higher in comparison to a personal loan. At this point it is more viable to sum up all such debts on various credit cards and seek a personal loan. By clearing all other debts there is only one loan that needs to be settled on agreed installments
- Besides above tangible benefits of personal loan a person can use this amount by investing on himself through acquiring more skills that may help in his grooming, education and seeking specialized degree. Such investments bring a positive change in lifestyles and well being of the whole family
In short seeking a personal loan can be advantageous if a person is clear as to where the money will go. Sound investments in any form benefit in one way or the other. Therefore, there is no reason to feel shy in walking up to a bank and asking for a personal loan. After all, that’s what banks do and they are there to advance money.