Personal loans mean getting a lump sum amount without putting any assets at risk. And if you are a shopaholic with your shopping list ready but have a scarcity of funds, getting a personal loan could be an instant solution. The advantage of personal loans is that you can pay for your big purchases in monthly instalments. Lenders provide unsecured personal loans based on the borrower’s creditworthiness, which also determines the loan amount. The best part is that these loans can be used for various purposes, including big purchases.
Planning and budgeting are some of the steps you follow in a big purchase, which are also essential for getting a loan approved. So follow the same steps and don’t sacrifice your purchase or spending goals. In this post, we’ll explore five big spendings or purchases you can make with an unsecured personal loan.
#1: Home Renovations
Home renovations are pending spending on your list that demand a lump sum. And a personal loan meets that demand for your living space.
Whether the renovation is for a kitchen remodelling or a bathroom overhaul, an unsecured personal loan can help you finance it smartly without being too tight on your budget. It allows you to make the necessary improvements, so you don’t have to tap into your savings or retirement funds. Some home renovations you can finance with an unsecured personal loan are:
- Kitchen Remodelling
- Bathroom Renovation
- Roof Replacement
- New Flooring
When planning and budgeting for home renovations with an unsecured personal loan, you must clearly know what you want.
#2: Wedding Expenses
Weddings can be a beautiful celebration of building new relationships but can also be costly. The average cost of a wedding can go in several lakhs. Using an unsecured personal loan to finance wedding expenses is wise, as you don’t have to sacrifice your savings. Some examples of wedding expenses that unsecured personal loans finance include:
- Venue bookings
- Catering services
- Invitation card printing
- Photographer services
- Wedding dress & jewellery purchases
To get everything covered by the wedding loan, you should create a detailed wedding budget and stick to it. So instead of cutting costs in some areas, finance them with an unsecured personal loan.
#3: Medical Expenses
Medical expenses are costly, and this big purchase can come expectedly/unexpectedly. So when you require hospitalisation or surgery, and the health insurance isn’t giving you much relaxation in the cost, get a personal loan for a medical emergency.
Using a personal loan to finance medical expenses reduces the burden as expenses will turn into EMI. Some examples of medical expenses that you can finance with an unsecured personal loan are:
- Surgery
- Dental work
- Vision care
- Pre and post-hospitalisation expenses
- Prescription medications
Exploring all your options for lowering costs is helpful when facing medical expenses. And this big-ticket spending has no negotiating factor, so only an unsecured personal loan can help you with this.
#4: Education Expenses
Investing in upgrading education is one of those big spending you can’t avoid, and a personal loan can help in your financial decisions. As the cost of college and professional courses can be covered using this loan.
With an unsecured personal loan, you can finance your education expenses and invest in the future without exhausting all your savings or taking a high-interest education loan. Some examples of education expenses that can be funded with an unsecured personal loan include:
- Tuition fees
- Books and supplies
- Accommodation when studying outstation
When planning and budgeting for education expenses, it’s essential to research all your options for financing your education. And personal loans may come in handy for the best interest rates and more favourable repayment terms than education loans.
#5: Travel Expenses
Travel can be an excellent way to experience new cultures and create lasting memories, and it can be expensive. If you’re travelling internationally or planning a luxury vacation, personal loans can help you with funding.
Using an unsecured personal loan to finance travel expenses gives you the travel experience you want. And for managing the budget, you have to create some space for an EMI amount. You can use your financial institution’s personal loan EMI calculator online for this. You can get an approximate estimate of the amount you’ll pay using this online tool.
Some ways of working travel expenses with an unsecured personal loan are using them for:
- Airfare
- Travel Insurance
- Accommodations
- Tours and activities
- Rental cars
Whether it is off-season or you have a planned trip with your friends/family, lower the cost of your journey with unsecured personal loans.
Conclusion
Unsecured personal loans make big purchases and spending more manageable. Planning and budgeting your big purchases with a loan allows you to arrange the necessary funds and live tension-free. Whether renovating your home, planning a wedding, seeking funds for medical expenses, investing in education, or travelling the world, an unsecured personal loan can help you make these big purchases and spend without hassles.
