Whenever you go through a cash crunch or are broke, you might think of getting a Personal Loan. To be precise, personal loans are for individuals who have no other option. But lenders also benefit from personal loans. Many times they promote personal loans and even offer “pre-approved” loans. You don’t need personal loans all the time. Have you ever wondered why you might need a personal loan? You must calculate your needs before signing on the dotted lines. India’s First Free Online Financial Advisory Moneymindz
Education is the backbone of a nation. But education comes at a cost. The higher the level of education, the costlier it gets. Whether you want to get educated in India or abroad, getting an education costs you a lot of money. But for this, we have Education Loans. Personal loans are not for financing education. Education loans come with moratorium periods in which the student doesn’t need to start paying EMIs for a specific amount of time. Personal loans don’t have moratorium periods.
2. Medical emergencies
Prices cannot be set on health and wellness. So, money needed for medical purposes can be arranged by two methods: having an Emergency Fund and buying Medical Insurance. An Emergency Fund consists of 6 to 12 months of your income and is specifically meant to tackle emergencies, including medical ones. In case you don’t want to use the Emergency Fund for medical purposes, buy Health Insurance. It will take care of your medical treatment costs. It is advisable to have both an Emergency Fund and an adequate Health Insurance. But you don’t need Personal Loans for Medical Emergencies. India’s First Free On call Financial Advisory Moneymindz
3. Amalgamating debt
Like most people, you may also have several credit cards and loads of credit debt. At that time, you might take a single personal loan and clear all your credit debt so that you can focus on clearing one debt rather than multiple ones. Though this doesn’t reduce your debt, it at least simplifies it for you. Stop using your credit cards or start using them wisely. Clear all the debt with one loan. Then work on clearing that big loan.
When not to use Personal loans
Apart from education and medical purposes, there are some other instances where you should not take personal loans. They are:-
4. Commencing a new business or funding your business
For the business-related expense, you can always avail Business Loans. Such loans help you fund your business, deal with business uncertainties or create a new business. But rather than loans, you could try borrowing from family and friends first.
Find more information at www.moneymindz.com or give a missed call to 022-62116588.