New Delhi. Nowadays, getting a personal loan has become easier than ever. Banks, non-banking financial companies (NBFCs) and fintech platforms are approving loans within minutes. But as the convenience increases, the risk also increases, because the interest rates on personal loans are usually high. A wrongly taken loan can become a burden for months. Still, there are some occasions when taking a personal loan becomes a completely legitimate and practical option.
Immediate help in medical emergency
The best situation is when a medical emergency suddenly occurs. Expenses can increase rapidly in case of serious illness, surgery, accidents or sudden hospitalization. Many times even health insurance does not cover all the expenses. In such difficult times, a personal loan prevents delays in treatment by providing immediate funds. Experts also believe that this loan is the most appropriate option in life-saving situations.
Sudden major home repair or renovation
Problems like leakage in the house, burst pipelines, leaking roof or cracks in the walls do not wait. If home loan top-up is not available or the process is lengthy, a personal loan can provide immediate relief. This not only keeps your home safe but also prevents major damage by getting repairs done on time. Spending on necessary repairs is considered a financially responsible move.
wedding or large family gathering
Wedding or any big celebration is an important occasion in Indian families. Although ideally it is better to spend than save, this is not always possible. Taking a personal loan can prove helpful while living within a limited budget, provided the loan does not go beyond your capacity. Experts advise that while maintaining the joy of the celebration, it is important to prepare a plan for the loan installments in advance.
Necessary and mandatory travel expenses
It is not considered right to take a loan to go on holidays, but some trips cannot be avoided. Like going to see a sick relative, attending an important function of a relative or suddenly going to another city to handle a family emergency. In such a situation, a personal loan covers the necessary expenses without spoiling your savings.
Need for additional funds in higher education
Many times, even after taking a student loan, unexpected expenses arise – like living expenses abroad, project costs, books or additional course fees. In such a situation, a personal loan acts as a helpful top-up, allowing students to continue their studies without interruption. According to experts, investment in education always gives returns, hence this loan is considered more sensible.
Only a loan taken with responsibility is helpful.
Personal loan is not a solution for every situation. It proves useful only when it is taken in genuine need and there is ability to repay on time. Due to high interest, this loan can become a burden in the long run, hence it should be avoided for unnecessary expenses. Financial experts believe that a personal loan taken on the basis of proper planning, EMI management and regular income acts as a security shield in times of crisis. Ultimately, debt should make your life easier, not harder.
