There are various types of loans a person can apply for. But, personal loans are the most convenient loans one can take.
Simply put, personal loans are borrowed money that you can use for large personal purchases to cover emergency expenses and much more. Depending upon the bank you opt for, the interest rates, payment plans, eligibility, and other intricacies can vary.
However, getting a personal loan from a digital bank like Alex Bank is a simple and easy process, and comes with highly competitive interest rates.
Here are some reasons why you must apply for a personal loan.
1. Home Remodelling
Renovation or remodelling can burn a hole in your pocket. Especially if you are planning to sell your home, remodelling a home is almost a necessity. A personal loan is an excellent option for people who need an emergency loan without collateral.
Since remodelling or renovation projects require a few thousand dollars, it’s advisable to look for a personal loan to meet these expenses.
2. Moving Costs
Moving anywhere within the country may set you back anywhere from $500 to $1300. At the same time, a long-distance move can cost as much as $5000.
So, if you do not have that much cash liquidity, you can take a personal loan to cover all your moving expenses.
Personal loans can enable you to move your entire household, acquire new furniture for the new place, transport your car or any other vehicle, and cover any additional expenses you might incur while moving.
This is beneficial for those who are expecting thousands of dollars in moving expenses.
3. Emergency expenses
If you do not have ample savings tucked away in your bank account, any emergency can cause tremendous distress.
For instance, sudden emergencies like paying for a loved one’s funeral can be taxing, not only mentally but also financially. Also, medical emergencies are among the most common reasons to take a personal loan, especially when you need to pay in full.
Medical emergencies such as dental work, cosmetic treatments and fertility procedures can cost a fortune. Moreover, ancillary expenses like medications, medical travel and aftercare can also pile up, rendering you in need of some cash liquidity.
Personal loans are a convenient option because banks, especially digital banks, can disperse the amount quickly.
4. Vehicle Financing
While there are different types of loans available for purchasing a vehicle, such as a car, boat or an RV, they are only available when buying a vehicle from dealerships or directly from the company.
So, if you are buying a used car directly from someone else, taking a personal loan will enable you to buy the vehicle without having to touch your savings.
This will ensure you have your savings for more important emergencies in the future. Besides, when you get a personal loan, you can also choose a monthly repayment plan, ensuring you don’t end up in more debt in the long run.
5. Wedding Expenses
A big, extravagant wedding sure sounds like a dream but can often be prohibitively expensive—the average costs of a wedding in Australia range from $38,000 to $70,000.
Taking a personal loan for the big bash is an excellent option for couples who do not have a big budget. Couples can use the loan to cover significant expenses like the venue, dresses and catering.
Besides the wedding, you can take a personal loan to buy the best ring for your significant other as rings can cost several months’ salary for average Australians.
6. Vacations
Taking an annual vacation is good for the body and the soul. A good vacation is necessary to relieve the stress of day to day life and explore new places.
While a regular trip to the nearby mountains is not expensive, visiting an international destination or taking a luxury cruise is undoubtedly more expensive.
By taking a personal loan for a vacation, you can spread out the cost of your holiday over a few years and visit your dream destination.
7. Appliance Purchase
There are dozens of household appliances that you need to manage the day to day household chores. If one of the appliances breaks down, it causes discomfort and makes it challenging to manage the house.
So, if you suddenly need to buy a dishwasher, washing machine, television or other appliances, you can take a personal loan.
Rather than saving up months just to buy a new washing machine or television, you can take a personal loan to save time and buy the appliances you need when you need them.
To conclude, personal loans can be utilised for anything you need, from covering medical bills to paying for luxurious vacations. As long as you use the credit wisely, personal loans are always a viable option.
