Top 10 Reasons for Taking Personal Loan in India
Published on : November 17, 2023

Money is an undeniable necessity for meeting both our needs and wants. It is imperative for all our basic essentials and luxuries that add comfort to our lives. We need funds for all special occasions, emergencies, and any other reasons. The best way to get funds in an emergency situation is a personal loan. LoanTap understands that each individual has different requirements, and therefore, we offer personal loans accordingly. Before we get into the top reasons for taking personal loans in India, let us understand what personal loans are and how they work.

Personal loans – what do they mean to the borrower?

Personal loans are unsecured loans that can be used for any purpose. No assets need to be pledged as collateral since they are unsecured loans. Online personal loans are easily available in India. The entire process is digital and involves minimal documentation.

LoanTap offers personal loans from ₹50,000 to ₹10,00,000 for tenures ranging from 6 to 60 months at attractive interest rates. They offer flexible repayment options to make the EMI burden lighter on the borrower. LoanTap allows foreclosure without penalty after 6 months, although you can foreclose the loan earlier but the penalty would be implied.  

Reasons to Choose Personal Loans

Now that you know what a personal loan is and how it works let us look at the top 10 reasons why personal loans are taken in India.

1. Home Renovation 

Are you planning for painting, remodelling, renovation, modular kitchen, or changing the furniture, but worried about the expenses? A personal loan can be your solution for any kind of home renovation.  A home renovation comes with a step-up loan option where you can pay only the interest for the first three months while regular EMIs start subsequently. This can reduce cash outflow by over 40% during the first three months, giving you a breather.

2. Holiday/Vacation 

Do you have a holiday plan but are worried about the finances?  You don’t have to put your travel plan on hold; just get a travel loan and go on that holiday that you have been delaying for a long time. You can pay off the EMIs comfortably. You can even foreclose the loan if you have enough finances to prepay.

3. Wedding 

Are you planning for a grand wedding but worried about the finances?  We’ve got you covered. With LoanTap’s Wedding Loan, you can plan the big fat Indian wedding you have been dreaming of. A personal loan can come in handy for this special once-in-a-lifetime occasion. You can easily pay it off over the tenure of the loan. You can apply for a personal loan without any hassle. 

4. Purchase of Bikes 

Are you someone who likes sports bikes and going on adventures on your bike? Or do you want a sustainable electric bike? With a Loantap personal loan, you can get the bike of your dreams. Go on that adventure or save the environment with an electric vehicle without thinking about the finances. You can pay an electric vehicle loan over the tenure of the loan, and it will give you mobility. You can even use it to buy an electric bike and do your bit for the environment.

5. Medical emergency

Emergencies don’t come with warnings. When you face a medical emergency and need to raise funds immediately, you can trust an online medical loan. Since these loans are credited within 24-36 hours, you can rely on personal loans in times of crisis comfortably. You have the flexibility of choosing the loan tenure at your convenience. 

6. Rental Deposit 

Relocating to a new city and finding rented premises to live in can be a tough task. Homeowners charge 6-12 months of rent as a security deposit, and it may be a lot to handle. Rental deposit loans can come to the rescue in the need of immediate funds. You need to pay only the interest over the tenure of the loan at the end of which the amount will be directly refunded to LoanTap by the homeowner.

7. Debt consolidation 

If you have taken multiple loans and are burdened by multiple EMIs and high-interest rates that are pushing you into a debt trap, you can use the debt consolidation loan. Personal loans can help you get out of the vicious cycle of credit card debts and help you manage one loan at a time. Proper repayment of this loan will also assist you in improving your credit score. This is another reason why people caught in the circle of debt opt for personal loans.

8. Education Expenses 

Paying for education expenses is important and cannot be ignored. Getting your child into a coaching institute or a good university can cost a lot of money. If funding is an issue, you can choose a personal loan to manage your finances. It can be repaid comfortably over the tenure of the loan while your child can benefit from a good education. This also ranks among one of the top reasons for availing of a personal loan.

Conclusion

There can be numerous other reasons for availing of a personal loan. LoanTap merely facilitates the process by providing a quick, efficient, paperless, hassle-free and convenient method of accessing funds in times of need. If you are an Indian citizen or resident over the age of 21 years and earn a net monthly income of over ₹30,000, you are eligible to avail of a personal loan from LoanTap. Download the app, fill out an online application and upload the basic documents like PAN Card, Aadhaar Card, Salary slips / Income Proof and Bank Statements, and you are done. The system will process the loan and credit your account in 24-36 hours. So what are you waiting for? Whatever your reason for a personal loan, download the LoanTap app today!