Most Approved Reasons For Personal Loan

When you apply for personal loan, you get a call from a credit manager (a person from the bank). He asks about the reason — Why do you want to take this loan?

If he is satisfied with your reasons only then your personal loan will be approved. So here are some most approved reasons for personal loans. These are the Best reason why I need a personal loan to tell the bank. You can use these reasons to get approved for your personal loan.

Personal loans are the perfect choice to fulfill immediate requirements, combine your running loans, complete your family’s dreams, or maintain your lifestyle.

Of course, personal loans are personal to you so reasons too be personal.

But wait and read before applying for a personal loan you will know how the personal loan works.

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Sometimes you need a personal loan for those reasons that are very important. In some cases, you need a loan that not looks important to the credit manager and he/she rejects your loan. So you must know what are the reasons for which you can take a personal loan.

How are personal loans different from other financing loans?

Personal loans are unsecured loan which means it doesn’t require any type of collateral.

On another side, if you take a secured loan and could not repay then the bank/lender will seize the collateral. But in an unsecured loan or can say personal loan there is no collateral. So if you do not become able to pay the loan just your credit/ cibil score will go down and you may call a defaulter but they can not take any other action.

Personal loans are provided based on your credit score and the history of your loan paying. But in secured loans, it is somehow a little different. It depends upon the property and the value of the property and also a little bit on your credit score. In personal loan only depends upon your monthly salary and second is your credit score.

In a secured loan, you get a loan for a specific purpose and can not use it elsewhere. But in a personal loan, you can use your money anywhere you want.

A personal loan also differs from a credit card. In this, you have to pay per month EMI but on a credit card, you only pay interest till you do not pay your principal amount.

According to the agreement in the personal loan. you can not take a personal loan for gambling, illegal work, or for postsecondary education expenses.

Why Personal Loan is better than other Loans?

As everyone wants a loan at the cheapest rates and wants to pay a low-interest amount. But in general, it is very difficult to get this thing. So the personal loan is balanced with all requirements. If you want to take a loan that can be closed soon, these are payday loans.

These loans close soon but they are at very high interest rates. The rate for payday loans varies from 20% to 30% or more. So no one wants to take this.

Now consider long-term loans which are at approximately 8.50% to 9%. But the problem with these loans is first you have to give collateral and the second is these loans are for long term like 10+ years. So at the end of the loan, you have to pay interest more than the principal amount. So this is also not favorable.

For these solutions, personal loans are best. Because these are at a balanced rate between 10.25% to 14% and for a very short duration as per your choice. You can choose a duration from 1 year to 7 years as per your comfort.

How the given reason affects your personal loan?

In banks, there are a lot of types of loans. So the given reasons give a clear picture that which type of loan (product) will fit you. For example, if you want to buy a home and apply for a personal loan then the credit manager will reject your loan and will suggest applying for a home loan.

Given reason also affects your Rate of Interest and tenure available for that loan. Most approved reasons for personal loans also depend upon your past history of loans.

One more thing that affects your rate of interest and tenure is your cibil score.

NOTE- We suggest you tell us the real reason for your application. It will be best for you. Because if the given reason got false then your loan will be rejected.

9 Most Approved Reasons For Personal Loans

1)- Medical Issue / Medical Bills- (Best In Most Approved Reasons For Personal Loans)

This is one of the best reasons among most approved reasons for personal loans to get your loan approved. You can explain your medical issues. This reason is the less rejected reason. There may be some credit or income issue only then the bank can reject this reason.

2)- Other Emergency Cash Need-

Except the medical issues there are also some emergency reasons. For which your loan can be approved easily. Some of them are

Urgent car repair , Any Funeral expenses or for some home utilities.

3)- To Close High Rate Of Interest Loans-

There are many payday loan offers these days. These are the loans for the short term and they become easily approved. At this time such types of loans are provided by mobile apps which are dedicated to funding.

For this, they take money from banks and fund their customers. Sometimes it is not necessary to have a good cibil score. Due to this people takes it. These loans are till 30% rate of interest.

You can use your loan to close these loans because personal loans are at very less rates of interest(compared to the best banks) than these loans.

This is best among most approved reasons for personal loans if your credit history is good.

4)- COMBINE ALL DEBTS-

In this era, everyone is consuming credit cards. They also have many other loans. Due to this, they have to pay many EMIs. As everyone is familiar with credit cards. The rate of interest for credit cards is more than 3 times of a personal loan.

So if you have lots of debt on your credit card or many loans then you can take one loan and close all other loans and credit cards. Simply it is directly done by banks. This process is called Balance Transfer(BT).

This is one of the major reason to take personal loan for many people in India.

5)- Personal Loan For Home Renovation-

If you have your own home, you can take a loan from the bank on behalf of the home property based on its valuation. That will be a secured loan and you have to give collateral.

But for this, you can also take a personal loan. This is preferable because the tenure for a home loan is more than 10 years and for a personal loan you can get tenure of 1 year to 7 years. So you have to pay less interest on personal loan.

6)- Personal Loan For Wedding Expenses-

This is one of the most approved reasons for personal loans. At weddings, there are a lot of unexpected expenses. So you need urgent money.

For this, you can use credit cards. But wait if you are aware then the rate of interest for credit cards is very much. So in place of that, you can use a personal loan to fulfill your wedding expenses. And also use it to make the budget fit after marriage. If you apply for a personal loan for this reason. Your loan will be approved easily.

7)- Personal Loan For Big Purchase-

You can take a home loan to make your home. But after your house is ready, what next? Now you need to maintain your home.

You need big appliances and many essential things to make your house to home. You can easily get approved for personal this reason. You may have requirements for furniture and many electronic appliances like — television, air conditioner, and many more. To fulfill these requirements you can easily get a personal loan.

8)- For being settle in outside of home town-

As if you go outside of the home. Then you need a flat/house to live in and all the other necessary things to live a life. To maintain this you can easily take a personal loan which can be managed.

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9)- Personal Loan For Vacation Cost-

This reason can also make sense. This reason is least favorable in the list of most approved reasons for personal loans if your income is low or your cibil score is not good.

There are also some special loans dedicated to holiday costs. So you can also apply for those loans.

To Read More- Reasons Should Not Be Told To Take Personal Loan. Click Here