When should one take a personal loan?

An instant personal loan is mostly unsecured and you don't need to keep any collateral as a security. Whereas a mortgage loan is a loan wherein you keep your home as a collateral, and similarly in case of auto loans, your car is kept as a collateral on availing the loan. Since, there's no collateral involved with personal loans, the interest you pay might be a bit higher from the other type of loans, while you have the flexibility to choose a secured personal loan, if you want to lower the interest rate.

Anyway listed below are a few reasons why taking short term personal loan is a good idea.

1. Helps you consolidate your debts: When you have a lot of credit cards in your possession, and all of them have already maxed out, you need something to consolidate that debt. You can now choose between personal loans online at com and pay off all your debts, instead of paying it with high Annual Percentage Rates (APRs), which is applied on your credit cards.
2. Paying for education: It is always a relief when you get to refinance your education loan. And the rate of interest applied on that may vary from 6.8% and higher, but you need to look out for better options. You can thereby opt for a personal loan with Sugmya Finance, and pay the best and the lowest rate of interest in the loan taken. It will also help you to repay your education loan faster. Anyway, you also need to remember that there are issues with education loans; when you apply for one, you receive tax advantages for that, and if it happens that the government appeals for a law forgiveness program anytime in future, then your refinanced student loan won't be eligible
3. For purchases: With a personal loan you can easily buy and purchase a product or service of your choice. You can buy something high-ticket like a car, or even choose to go on a long vacation in Greece. It is a magnificent place, isn't it? So, a personal loan can help you there. You don't have to worry about money there, you can apply for a personal loan and it will be disbursed to your account in no time, with an option to choose from whether you want to repay fast of slowly. But certainly personal loan is a better option than credit cards.
4. For a big fat Indian wedding: When you don't have to worry about money and have the option to pay back the amount borrowed in instalments, then why not get married in an exotic destination like Thailand. Not only wedding, with personal loans you can fund to host any event, be it a big birthday party or even a bachelor party. And this will be a less of a headache. Since, during events a lot need to be taken care of.
5. Improve your credit score: When you opt for a personal loan and then pay it back, it shows very nicely on your credit history, and thereby increases your credit rating as well. It also portrays that you are a trustworthy individual who knows how to manage money.