Sunil Sharma, a software developer, was looking forward to his wedding next month. He wanted to ensure that everything was perfect for his big day. But there were the finances to consider. Sunil wanted to have a grand ceremony without affecting his savings. This is where a Personal Loan came in handy.

Personal Loans are helpful when you are in urgent need of cash. These loans are easily available and can be taken without any collateral. You can apply for a Personal Loan at your bank . or any of the many non-banking finance companies (NBFCs). The latter are providing Personal Loans at competitive rates. You can even apply online to avail a Personal Loan. Just remember, the eligibility criteria will vary from lender to lender.

Here are 7 Common Types of Personal Loans in India

  • For home improvements: Are you renovating your old house or making some big changes? You could avail a Personal Loan for Home Renovation to handle the costs.
  • For consolidation of debt: Juggling various high-interest debts is a bad idea. Instead, think about refinancing them. Consolidate them all with the help of a Personal Loan.
  • For medical emergencies: Say, you face an unexpected medical emergency and do not have enough insurance. A quick Personal Loan can help you pay off the medical bills.
  • For weddings: You may want to spend lavishly for this one occasion. You can make it memorable. Get a Personal Loan without any security.
  • For vacations: It could be a honeymoon or a family vacation. Take a Personal Loan to explore a new world rather than liquidate your investments.
  • For consumer durables: Retailers provide attractive offers on consumer durables, especially during the festive and holiday seasons. You could take a Personal Loan for big-ticket buys like TVs and washing machines. There is no need to break the bank.
  • For used cars: Used car loans tend to charge higher interest rates. They may also come with many limitations. So, you could go for a Personal Loan to buy a used car.

You may get a lot of calls from telemarketers for a Personal Loan. To qualify for a loan, you need to meet some basic criteria. Your age, occupation, repayment capacity, employment history, and CIBIL report will matter here. The lender will consider these while determining your eligibility. A poor credit score can lead to loan rejection.

Personal Loans are easily available. But, sometimes, you may not qualify based on certain criteria.

What should you do if you do not qualify?

  • Ask your lender if getting a co-applicant would help. This may be an option if your income or credit score was the reason for rejection ( Read Blog: Get A Co-Borrower to Boost Your Personal Loan Eligibility.)
  • Plan for adequate medical cover in advance to avoid any hassles.
  • Consider secured loans as alternatives. You can go for a gold loan, a loan against fixed deposit, or a home interior loan, for example.
  • Consider 0% EMI schemes on your credit card when buying consumer durables.

Finally, do not go overboard with debt. Exercise restraint while spending. Stretch yourself only to the extent that you are able to afford.

Check out Personal Loans from Bajaj Finserv and see how you can avail cash in the bank is as little as 72 hours by clicking here.

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