“The world is your oyster”
Simply put, you can use a personal loan for just about anything. In fact, one of the most considerable benefits of a personal loan is that they are flexible and multi-purpose. While other loans are for specific purposes (such as a home loan), in some cases you won’t even need to inform your lender of your reason for needing the cash. While many loan purposes are acceptable with a personal loan, you should always carefully consider your ability to make repayments. If you could otherwise easily save the money or if your income and employment are not stable, then you should consider whether a financial loan is right for you. If you are ready to make a loan application, the following points are just some of the exciting things you can do with a personal loan.
Buy a car
A personal loan can be used to buy a new or second-hand car from a dealer, or private seller. While it may seem easier to obtain finance from the car dealer, this can often include extra fees as commission for the dealer. Therefore it is always best to compare available loans from trusted providers to ensure you receive the best loan for your circumstances. Once the funds have been approved by your loan provider, the money will be deposited straight into your chosen account, or in some circumstances be transferred straight to the car dealer.
Financing travel using a personal loan has become a popular option among globe-trotters. The fixed interest rate offered by personal loans means that ongoing repayments remain consistent, making it easier to remain on budget. You can also usually borrow more money with a personal loan than with a credit card, making that trip to Paris a reality. Using a personal loan ensures that you only receive a fixed amount as determined by you and your lender. This makes a loan a more appealing option than a credit card, where you will be charged foreign exchange fees and may be tempted to spend more than you intended.
Renovate your home
An unsecured personal loan is ideal for small renovations, whilst a secured personal loan is more appropriate for larger scale projects. Getting funding in advance for any renovations ensures you can calculate how much you have to spend (so you don’t go over budget) and ensures that you won’t have to halt progress until you can afford to continue. Upgrading an old bathroom or building the kitchen you’ve always wanted, adds value to your home and makes you part of the ‘renovation revolution’. A personal loan is a great way of putting your plans in motion and achieving your dream home.
Start a business
Securing a traditional business loan through your bank can prove challenging for small business owners when just starting out. Stringent eligibility guidelines, approval procedures and collateral security can be off-putting for those who are seeking a small and quick influx of cash. Furthermore, obtaining a business loan without any business history behind you can be particularly tough. Personal loans however, focus on the individual rather than the business. As they come in smaller amounts and don’t require security, more people are financing their business using a personal loan.
Consolidate your debts
Okay, probably not the most exciting way to use a personal loan, but perhaps the most beneficial. Debt consolidation using a personal loan allows you to combine your existing debt and make one monthly payment through a lower interest rate as offered by a personal loan. This makes your loan easier to pay off, providing you with an allocated time frame to repay the consolidated loan rather than having multiple and confusing monthly payments of various debts. Consolidating your debt through a personal loan can also save you a lot of money in interest.
A personal loan opens the door to a whole range of opportunities. From starting your business to getting that plastic surgery to boost your confidence, a personal loan can be your financial avenue to achieving your dreams.