Personal loans are perhaps the most popular loan solutions in the world. Their flexible feature that allows you to use funds for any purpose makes them useful for any financial need.
Also, the credit-friendly lending makes the financial solution even more adaptable to your financial needs. You can get unsecured loans for bad credit with instant approval, as per your repayment ability.
Know the top 10 uses of personal loans
Here are the 10 typical uses of the loans, which make these loans even more popular. Know them, and also know how personal loans can help avoid financial chaos. You must have applied for one of the following reasons in the past. Otherwise, you may need the borrowing option for any relevant need in the future.
1. Medical emergencies
Medical emergencies are unavoidable, as they are about your physical well-being. A sudden heart attack, accident, high fever or recurrence of an existing disease, anything can make you need more money.
Hence, the loan helps in many ways, such as –
- Emergency hospitalization
- Medicines and diagnostic tests
- Post-treatment recovery costs
- Surgery or specialised treatment
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2. Home renovation or improvement
Home improvement, upgradation, renovation or remodelling needs are usually short-term to mid-term needs. A home loan will be too big for them. Personal loans provide funds for a tenure of one to seven years, perfect for any financial need.
How do the loans support home repair needs?
- Home extension expense management
- Painting and upgrading requirements
- Minor structural requirements
- Appliance and furniture purchase
3. Debt consolidation
A pile of debts can put you in a debt trap, derailing your financial goals for future safety. However, a timely decision taken to manage multiple debts can save you from a bigger threat. Yes, personal loans are here too for your help.
How do the loans consolidate debt?
- Merge multiple small debts into one personal loan
- Pay the merged debts, and now pay only one instalment
- Get a lower rate of interest with manageable repayments
- Reduce or remove the risk of missed repayments.
4. Travel or holidays
Travelling for a reason such as an educational purpose or for a fund like a holiday plan, take these loans. Manage your expenses and repayments affordably as the lenders offer personalised deals.
Handle the travel costs using funds –
- To pay for tour packages
- Book a flight and accommodation
- Emergency financial needs
- Cover travel insurance and visa costs
5. Multiple personal expenses
Sometimes, your needs are not specific. It is just a gap when you need funds to fill a financial gap and manage multiple expenses. Example – Job loss is a common reason that can make you apply for a personal loan. Be careful while borrowing for a desire, as that can make you overborrow. This can affect repayments of other debts taken for a realistic need, and also monthly expenses.
How does the loan help?
- Tour packages
- Emergency travel needs
- Visa and travel insurance costs
- Flight ticket and accommodation
6. Education or for skill development
You may need money for any educational purpose. As a student or participant in a skill enhancement program, funds are necessary for many types of expenses. The loans are suitable for temporary, short-term, and mid-term needs. Therefore, you can easily manage to pay using the borrowed funds.
Usually, the loans are used for –
- Online learning courses
- Professional certification courses
- Purchase study material and equipment
- Coaching classes or to pay for exam fees
7. Wedding expenses
Weddings are always heavy on your finances and require a lot of money. Despite a well-planned wedding, some expected and unexpected expenses can arise. Don’t worry, the loans for personal use are here to help when you are in need.
Avail funds to pay for –
- Wedding attire and jewellery
- Venue and banquet hall expenses
- Photography and entertainment
- Catering and decoration costs
8. Small business or start-up
Be your own boss and open a business that gives you stability better than a job. But what about funds? Initially, personal loans can help with various purposes in many ways.
Personal loans help with your new business –
- Get loans without any business credit history
- Set up a home office for your start-up
- Pay for initial marketing and branding
- Cost of raw material or inventory
9. Buying consumer durables
Purchasing consumer durables like washing machines, laptops, smartphones, kitchen appliances, office chairs, etc., is expensive. Your savings may not be sufficient for that. Also, it is not wise to use the precious nest egg for one purpose. Hence, the personal loans act as the saviour.
How do the loans support the purchase?
- Pay a deposit or the full amount
- Purchase the product on affordable repayments
- Grab the best deals as the loans offer instant funds
10. Improving credit score
The best thing about personal loans is that they help you improve your credit score. As you know, the loans are credit-friendly. Borrow funds with a good, fair or bad credit score. Hence, it is also a chance to boost your credit score.
How do the loans improve credit score?
- Personalised, affordable deals make repayments affordable.
- With every timely payment of instalments, the credit score boosts
- The loans demonstrate your responsible financial behaviour
- Reduce credit card utilization using the borrowed funds
Tips for a safe apply for personal loans
The loans have a high approval rate, but that should not make you careless while applying. Affordability rules are applicable. Therefore, follow the tips below to elevate your approval chances.
- Compare as per APR and interest rate
- Confirm the processing fees and hidden charges
- Know about the loan term and monthly instalments
- Consider your repayment ability before applying
Choose a direct lender for personal loans – Why?
Direct or online private lending is considered a dependable borrowing platform. Mainstream lending has started using new-age financial and affordability assessment tools. But their lending approach is still traditional.
- Apply with any credit score – Current repayment ability is the basis of approval.
- Borrow 24×7 – Unlike traditional lenders or banks, there are no set hours to apply.
- Online process – For short-term loans like personal loans, direct lenders process applications digitally.
- No guarantor required – In case of weaker finances, you may get approved for a small amount, but no guarantor is required.
You can find all the traits mentioned above in Quickloanslender, one of the best loan providers in the UK. Apply and experience it yourself.
Conclusion
As you can read above, personal loans have multiple uses. In fact, you can use them for purposes other than those mentioned here. Add more of your reasons, and the loans are there to support you.
It is important to apply for an amount you can actually afford. Also, make sure your need is realistic. Otherwise, it can create a debt burden. Avoid taking personal loans too many times to maintain the right credit mix. Besides these precautions, you can always enjoy affordable borrowing through customised deals.
Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.
