Personal loans, by nature, are unsecured credit options issued by non-banking financial companies (NBFCs) or banks. They are addressed as an unsecured option because, unlike auto or home loans, you do not require pledging any security as collateral to avail the loan proceeds. No security requirement makes the personal loan a prudent financing choice during urgent fund requirements.

So, when is the best time to apply for the online personal loan option? Mentioned here are some scenarios when personal loans act as a financial savior.

Medical exigency

Medical emergencies can take a critical toll on your financial condition. Despite holding a healthcare policy, it might not be adequate as they tend not to cover all the expenses. Here’s where a personal loan comes in handy. Funds in the case of personal loans are generally disbursed quickly and hassle-free, saving you from the stress of using up your investments meant for meeting your long-term financial goals.

Marriage

Marriage in India is a grand affair. This is an occasion that requires adequate funds in place. However, at times the cost incurred at the celebration tends to increase, resulting in a financial shortfall. This shortfall can be met by hitting the online personal loan application button with a suitable lender. So, whether you require additional funds for catering, flower decoration, or shopping, a private loan option can help.

Relocation

Are you moving to another location? This can be a daunting experience as it requires sufficient funds. In a scenario like this, you must hit on the personal loan apply option if you are short of funds. Doing so can allow you to take care of immediate expenses that may come up due to relocation.

You may consider opting for a pre-approved personal loan option regarding instant fund requirements. Such loans are often disbursed on the same day as the loan application. However, as they are instantly paid and require minimal or no documents for processing, the personal loan interest rate may be higher than other types of loans. So, before zeroing in on a specific loan deal, compare distinct lenders to select the best option. You may even use an online personal loan EMI calculator to decide on the prudent lender.

Unplanned trip abroad

Owing to financial restrictions, many consider postponing their vacation trip to later. However, with a personal loan, you do not need to wait for you forr trip. Using a personal loan, you can fetch the necessary funds quickly and repay the same in the form of EMI over five years as per your repayment potential and cash inflows.

So, you can avail of an individual or professional loan. However, the procured funds cannot be used for speculative purposes like gambling, purchasing assets like gold, equity, or debt, or investing in markets.