As the inflation is rising, it is becoming hard coping up with the saving and investment equation. Most of the millennials and households have resorted to personal loans to bail them out of their difficulties. The advantages of these personal loans are innumerable, but the best to consider in the list is “collateral free” easy to access loans. It is on account of these traits that people prefer personal loans. Here are a few top reasons that have made personal loans the best bail out packages.
For Debt Consolidation
Most of the people are buying stuffs with their credit cards, or they have a car loan or some other specific EMIs to pay. When combined together, the EMIs become difficult to manage. With the help of the personal loan, they can consolidate those EMIs into one common EMI on the personal loan and pay off all their debts.
For Credit Card Payment
Often the rate of interest on the credit card is much higher than the personal loan interest. Hence, most of the individuals bank on the personal loan financing as a smart way to pay off their credit card debts. It is a viable option, as the borrower ends up paying less interest on the debts.
For Home Remodeling
Personal loan is an excellent option to avail when you want to remodel your house. Personal loans are quickly processed. Therefore, one can easily remodel the interior and exterior of the house as per their requirement.
For Wedding Finance
Indian weddings have international recognition because of the culture, traditions and expenditure involved. Most of the households rely on the personal loans to fund the luxurious chauffeured cars, delicious reception party and DJ’s at the wedding. And, the most fascinating stuff in the wedding is the jewelry purchase, that takes away a lion’s share of the expenditure.
These reasons have made personal loans the instant bail-out package in India. And, considering its growth rate of 20%, it will be grand in the coming years.