Eight ways in which a personal loan can help enhance your lifestyle

Changing times are influencing how people spend and borrow money. Previously, an individual would get a loan primarily for medical expenses, education fees, or starting a business. However, individuals now look at personal loans as a way to accomplish goals and upgrade their lifestyles.

Personal loans offer flexibility. You can use the funding to go on a needed holiday, finance your dream wedding, purchase a smartphone, and much more.

Lenders also offer flexibility in repayment through attractive interest rates and long tenures. This enables people to borrow affordably and repay comfortably and conveniently.

Here are the various ways in which you can use a personal loan to boost your lifestyle:

1. Pay for wedding expenses

A wedding is a momentous day in everyone’s life, and you may dream of celebrating this significant milestone extravagantly. However, having a grand wedding can be a costly affair. Substantial funds are needed to rent the venue, arrange lodging for guests, and pay for catering and decor. Apart from that, you also need to purchase wedding outfits and jewellery, pay for your makeup and photography, etc.

Thankfully, a personal loan can help cover a majority of the wedding expenses. This convenient solution to get quick access to funds lets you enjoy wedding festivities without stress.

Most financial institutions offer high loan amounts of up to Rs 25 lakh or more, which you can use to fund your dream wedding.

2. Finance your travel

Travelling to new destinations and exploring scenic locations can help rejuvenate your body and mind. It can provide a much-needed escape from a monotonous routine, but travelling is expensive.

Visas, flights, accommodation, food, activities, and souvenirs for your family, friends, and yourself - they can all add up.

A loan can help those who don’t have adequate funds. Whether you want a peaceful trip to the Himalayas, want to experience the Northern Lights in Iceland, or take a trip across Europe, personal loans can help satisfy your wanderlust.

With most lenders offering affordable personal loan interest rates, repayment can be manageable.

3. Renovate or refurbish your home

Your home is a special place, serving as sanctuary in these busy times. You may want to renovate or enhance the aesthetics of your home to make it more appealing and comfortable, but that comes with heavy expenses.

A personal loan can ensure that you do not delay your renovation project. It can provide requisite funds with no end-use restrictions at your disposal. Since this is an unsecured form of credit, you can get immediate funds without having to pledge your valuable assets as collateral.

4. Finance higher education

Investing in education is undeniably one of the most powerful ways to secure your future. However, you need a substantial amount, whether you want to upskill or pay your child’s tuition fees.

A top-tier educational institution abroad requires you to have substantial funds to cover tuition fees and living expenses. A personal loan lets you conveniently cover these expenses.

Many financial institutions, including banks and NBFCs, offer substantial loan amounts based on your creditworthiness. Meet the eligibility criteria and maintain a good credit score to set yourself up for success.

5. Buy gifts for your friends and family

Be it birthdays, weddings, moving into a new home, festivals, or graduation, everyone wants to share in the happiness and joy of family members and friends with gifts. A personal loan can help with this so that you don’t let a lack of funds get in the way of purchasing meaningful presents.

With this form of credit, you can get access to funds quickly with minimal eligibility criteria and document requirements. This allows you to purchase gifts like a smartphone, a laptop, an LED TV, or jewellery, and bring happiness to your loved ones on their special days.

6. Indulge in retail therapy

Whether it is electronics or designer outfits, accessories or appliances, a little retail therapy can motivate you to work harder and achieve more. If you need more money, a personal loan can help purchase the products that you want.

7. Purchase your dream vehicle

Many people dream of purchasing their dream vehicle, be it a motorcycle, an SUV, or a sports car. When it comes to financing the vehicle that you want, a personal loan emerges as a versatile solution and is an excellent alternative to an auto loan. However, you must remember that some manufacturers only accept an auto loan as a vehicle financing option. A personal loan can be a great option if you are not making a direct purchase from a manufacturer. You can use it to buy a pre-owned vehicle without depleting your savings.

8. Cover your medical expenses

Medical emergencies are unfortunate events that we hope to avoid, but they can arise unexpectedly. Considering the rising cost of healthcare, you may find yourself unprepared to address the expenses.

Health insurance offers some relief, but may not cover all associated expenses.

In the event of a medical crisis, you can use a personal loan to settle the bill without delay. This enables easy access to funds and proves helpful during urgent situations.

Clearly, there are many ways in which a personal loan can finance modern lifestyle needs. With no restrictions on usage, this form of credit have become a reliable and affordable option. However, you must choose the right lender.

Select a bank or NBFC that not only provides the loan amount you need but also ensures transparency in loan pricing and associated charges. Compare different lenders and choose one that offers the most favourable personal loan interest rate since it can significantly reduce your borrowing cost.

Lastly, ensure you only take a personal loan only if you know you can repay it easily and without straining your finances. This will help you improve your credit score and maintain good financial health.

^{(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)}