What is a Personal Loan? A personal loan is a type of unsecured loan issued by an individual, organization or other entities to a borrower (an individual or organization) and the borrower is liable to pay interest. This loan is paid back in monthly instalments over a period.
Taking out a loan is greatly beneficial when used and paid back correctly. Here are some top reasons to apply and secure a personal loan:
1. Consolidate Debt: Debt Consolidation entails taking out a loan to pay off others. When you apply for a loan and use it for debt consolidation, you’re combining all of those outstanding balances into one monthly payment. This grouping of debt makes it easier to work out a timeframe to pay off your balances without getting overwhelmed.
2. Unplanned emergency expenses: Emergencies are inevitable. When they happen, there is always a need to sort out some bills. Be it funeral expenses, medical expenses, etc. Consider applying and securing a personal in this case.
3. Alternative to a payday loan: A payday loan is a relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next salaries.
It could be so tempting to take out a payday loan when facing financial hardships. A payday loan is most times easier to get but carries extreme risks when you’re unable to pay back the amount of money owed in the time agreed upon and also comes with a high interest rate.
So, before you make up your mind completely to secure a payday loan, consider a personal loan instead.
4. Making a large purchase: If you don’t want to deplete your savings account, consider a personal loan. You can’t wait get your dream car, your wedding day is fast approaching, you need to pay for your children’s school fees or you plan to go on a travel vacation? A personal loan will take care of these.
5. Start or Boost a Business: To start a business, you need a capital, hence, a personal loan should be considered. And if you have a business running already but would like to boost it by buying more products, running promotions, etc., consider taking out a personal loan.
Note: A personal loan can used for anything and it is not limited to the points. For whichever reason you apply and secure a personal loan to do, always utilize this financial resource responsibly.