Top 8 Reasons Why People Apply for a Personal Loan

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Top 8 Reasons Why People Apply for a Personal Loan


Personal loans are never cheap, but they often can be had more quickly than other loans, especially when you approach a licensed money lender instead of a bank. People take personal loans for various reasons, top 8 being the following.

Debt consolidation

Most people use a personal loan to consolidate all of their debt into one loan having a fixed interest rate, fixed monthly installment, and a fixed end term. This arrangement can help save money or at the very least restructure financing.

When thinking of a personal loan, it is best you first approach a bank or some other financial institution. In case your loan application is turned down, only then you should think of meeting a legal lender. The reason is simple: legal lenders charge a higher interest rate compared to banks.

With that said, you might also consider legal lenders first in case you need a small amount of loan immediately. Unlike banks, money lenders don’t have stringent credit history check-ups and usually provide you with a loan quickly. Remember that legal lenders are not the same as loan sharks. The latter are not governed by law and should be avoided at all costs.

Pay off credit card loans

A personal loan usually has a much lower interest rate compared to what most credit card companies charge.

Finance a home improvement project

The other common reason to take up a personal loan is to pay for home remodeling. Whether you need solar panels, landscaping, a brand new roof, a hot tub or swimming pool, or a garage, you can pay for home remodeling with a personal loan.

Finance a wedding

You can use a personal loan to finance your wedding. You can use it to pay off big wedding expenses, like the bride’s dress or honeymoon, as well as to finance smaller expenses, such as a wedding planner, cake, and photography. A personal loan can help you have the wedding of your dream, even when you’ve just started your career and don’t want to borrow money from your parents.

To pay for relocation

Are you relocating to a different state but are worried about the moving expenses? Well, in that case, you can consider taking a personal loan.

Pay for medical bills

You can pay for dental services, cosmetic surgery, orthodontics, a bariatric surgery, fertility treatment, and much more through a personal loan.

Pay for a dream holiday

Typically, vacations don’t cost a fortune. However, a stay in an exotic destination or luxury cruise can cost you tens of thousands of dollars. If you want to go on a dream vacation now but don’t have enough cash, you might think of taking a personal loan.

To pay for a funeral

The cost of a funeral can easily run into a few thousand dollars. In case the estate of the deceased person can’t afford the cost of the funeral, a family member or a close friend can bear the expenses of a funeral by taking a personal loan. As the time is of great essence in such a scenario, you might want to a licensed moneylender Singapore provider, because you can get a loan within an hour or two after submitting the relevant documents.