Financial management is not always about investing your money to generate the highest returns. It encompasses every aspect of your life that can have an impact on your financial well-being. Due to the rising uncertainties of modern times and the increasing cost of living across all major cities of India, it is not uncommon to face financial troubles at some point in time.
To handle these problems efficiently, you no longer need to dip into your savings. Lenders these days offer various products to help you take care of your immediate financial requirements. Indeed we have witnessed a rapid increase in application for Personal Loans in the last couple of years.
With a steady increase in the demand for Personal Loans in India, many financial institutions have now started offering high-value unsecured loans at attractive interest rates.
Why are more Indians applying for personal loans?
With the ever-increasing size of the middle-class in India, people are now becoming more aspirational. Possessing a go-getter attitude has helped them overcome apprehensions regarding funding through loans. Nowadays, individuals are not hesitating from availing a bank loan to pay for any urgent as well as discretionary expenses.
Let’s have a look at 7 reasons as to why more Indians are opting for a Personal Loan:
- Debt Consolidation: With modern lifestyle habits, arrived modern lifestyle troubles! Many individuals are opting for a Personal Loan to break-free from the debt trap.
Well, excessive usage of Credit Cards, high-interest loans, or unplanned spending can be major reasons for why anyone ends up in a debt trap. However, by opting for a handy bank loan, you can effectively get rid of high-cost small loans and debts and lower the burden of your monthly loan repayments.
- Wedding Expenses: Getting married is one of the biggest events of any individual’s life. With the scale of Indian weddings getting bigger and grander every year, it is not surprising that Indian families spend a large part of their savings on weddings. Indeed many even choose to avail of a Personal Loan to pay for the wedding expenses. Not only does it allow one to fulfil all the wishes related to the wedding but also enables one to do so without using up personal savings. With more and more people applying for a Personal Loan to pay for the wedding expenses, many financial institutions have started offering Personal Loans for weddings. For instance, a large number of people are applying for Axis Bank Personal Loan to finance their wedding-related expenses. High-value loans, extended repayment periods, attractive interest rates, and quick approvals make a bank loan ideal for wedding expenses.
- Exotic Vacations: Travelling is one of the favourite activities, so much so that most individuals start planning for the next trip while they are still on holiday. Moreover, many Indians are now travelling to exotic foreign locales to have fantastic travel experience. As international travel can be a little expensive as compared to local travel, individuals are now availing Personal Loans to pay for travel-related expenses. Opting for a loan allows one to undertake the long-awaited trip immediately and that too without using up the savings. On top of that, repayment via EMIs makes the experience even more hassle-free.
- Funding a start-up: The start-up culture is on a boom in India. Individuals are leaving their plush jobs and are venturing out with like-minded people to fulfil their entrepreneurial ambitions. As starting a new business venture requires a lot of capital investment, personal savings do not suffice for the requirements. Therefore, many first-generation entrepreneurs, who have a brilliant idea but not enough money, are opting to avail of a Personal Loan to finance their start-up ventures. For instance, Kotak Mahindra Bank Personal Loan comes with features like amounts up to Rs. 15 Lakh, online application, quick disbursals, and flexible repayment, making it ideal for start-up related expenses.
- Festival purchases: India is a land of diversity, with people from different cultures & ethnicity living together and celebrating numerous festivals together. Whether it be Diwali, Christmas, or Eid, Indians love to celebrate festivals wholeheartedly, undertaking significant expenses on account of organising events or giving gifts to friends and families. Additionally, online and offline retailers offer great deals during the festive season, prompting people to spend more. Individuals now do not let money come in the way of their festivities. More and more Indians are now applying for a Personal Loan to finance their festival related expenses.
- Home remodelling: There is a famous saying in India, “Home is where the heart is.” Without any exception, Indians love their home and leave no stone unturned to make it as beautiful as possible. With various updates and upgrades in construction technology, homes are now becoming more modern and futuristic. As a result, many individuals are now opting for Personal Loans to undertake home remodelling projects. This allows them to get everything they want for their home without any worries and then repay the amount in EMIs without stretching their finances.
- Home buying expenses: While one can avail a Home Loan to purchase a residential property, various other associated expenses are not covered under a Home Loan. Expenses like registration charges, stamp duty, moving expenses, security deposits, etc. make up for a significant sum of money. Opting for Personal Loans to finance these miscellaneous yet crucial home purchase-related expenses ease the financial burden of this high-ticket purchase considerably.
With its versatile features and easy application process, Personal Loans have emerged as the go-to option for individuals facing a temporary shortage of funds. It is an excellent option that allows one to take care of financial expenses easily while enjoying excellent flexibility. Though, it is still a form of borrowing that comes with an interest cost and, therefore, must be used judiciously.