Personal Loan: What are the surprising ways you can use it? | Mint

Facing an immediate medical emergency or relocating for a new job can evoke a mix of emotions—worry, excitement, and the added concern of securing funds. In such situations, personal loans can offer a viable financial solution.

A personal loan provides a lump sum amount that can be quickly transferred to your bank account, allowing you to manage urgent expenses effectively. This amount can be repaid in monthly instalments, known as EMIs, over a specified period.

Personal loans can help alleviate financial stress and reduce dependency on others. However, it’s crucial to maintain a good credit score, as it plays a significant role in the approval process.

Exceptions to consider

While personal loans can be helpful in many scenarios, there are situations where they may not be the best option. For educational expenses, consider exploring education loans, which often offer better interest rates and repayment terms. Similarly, for business-related needs, researching lines of credit or other financing options may yield more favourable outcomes than personal loans.

In summary, personal loans can be an excellent resource for managing various financial needs, but it’s essential to assess your situation carefully and explore all available options.