3 Times You should opt for a Personal Loan

What are some of the situations in which you can – and should – take a personal loan? We tell you.

Money is a strange thing. It does not buy happiness, but abundant amounts of it can make your life comfortable. You might suffer briefly from not having it, but the more you fail to plan your finances, the more trouble it creates for your future.

There are several times in life when you will face a shortfall in your finances. The best laid plans can come awry when this happens – the need might be acute and the shortfall too great. At such times, you might turn to your bank account to scrape together your savings. You are aware that years of savings are about to disappear in one fell swoop, but what other option is there?

There is a great option that must explore – it is known as the ‘personal loan’. Consider 3 situations in which you should opt for it:

1 For an emergency. An emergency comes knocking without prior warning, always catching you off guard. It could be of any nature: an urgent medical procedure for your spouse or parent, heavy hospital bills following an accident, your spouse or child wanting capital to start a business, etc. The point is, you might not have the necessary financial wherewithal to meet that emergency. So what do you do? Here’s what you do: you take a personal loan from your bank to meet the need. If you have a good credit history with your bank, then you might even have a pre-approved loan waiting for you.

2 To make a down payment on a house or a car. You might plan to buy your first home or car this year. Both are excellent assets to acquire, but you might need to borrow loans from your bank to fund these purchases. However, as a first time buyer, you might not be aware that you will get only up to 80% of the house or car’s total value as loan. The remaining 20% must be paid from your own money. Do you have the money to make a down payment on your dream home or first car? If you don’t, you should apply for a personal loan with your bank.

3 To pay for your child’s education.Your child’s education is important to you, and they have already expressed a wish to study a certain subject of their choice. But higher education costs are already prohibitively expensive, and by the time your child reaches college age, the costs will have at least tripled. You might root through your savings bank account to accrue the money to pay for tuition and other incidentals. But if you come up short, there is always the personal loan option to help.

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