Personal loan: From home renovation to wedding, THESE are some common reasons to borrow money

In the run-up to Diwali, it is usual for common people to have a range of expenses lined up. If you do not want to unlock your savings or deposits, you could consider taking out a small loan to meet these expenses.

Typically, it is not advisable to borrow money in cases where it can be avoided, but if it is urgent, you could consider taking a personal loan. Imagine you want to add a room to your house, or you may want to gift something expensive to a special one, or there is an important function to host. Taking a loan for these expenses is not unusual.

These are some of the common reasons for which you could consider taking out a personal loan.

Key reasons for taking out personal loan

I. Wedding or special function: One of the common reasons to borrow money is to organise a party or wedding at home. These are some special events which can not be cancelled or even deferred for lack of money. Therefore, it is acceptable to borrow money for a short period.

II. Expensive gift: Another reason to borrow money is to buy an expensive gift. For instance, you may want to give a diamond ring to your spouse and are short of some money. In such a case, you could consider using your credit card or taking out a personal loan.

III. Renovation: Getting your house renovated is another reason for borrowing money. If you need, say ₹3 lakh, for renovations that are long due. Since investing in your house is an investment, raising a small loan for this purpose is positive in the long run.

IV. Higher education: Although one should take an education loan for higher education needs, if it falls short of the actual requirement, then you could consider taking out a personal loan.

V. Urgent travel: Finally, some customers take out personal loans for travel. It should typically be avoided, but when travel is discretionary. But certain travels are mandatory or at least too important to postpone. Only for such travels, one could consider taking out a personal loan.

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