How Can a Personal Loan Help You with Your Finances in This New Year?

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With the New Year around the corner, it is time to make resolutions that will help sort out things on a personal front. You may also make plans for the New Year to make decisions that will help you in your financial planning as well.

By opting for a personal loan, you may get support for your financial worries. If personal loans are taken judiciously, they can help you save money. Personal loans provide a lump sum of money in your hands to finance some large essential spending and help you meet certain goals. Personal loan interest rates are now affordable, and you may repay the amount through EMI spread over a long tenor.

How Can a Personal Loan Help You with Your Finances?

Let us look at some ways a personal loan can help you with your finances in the New Year. The different means are as under:

  1. Personal Loans Can Support in Pursuing Higher Education:

You may aspire to study in a reputed institution in India or abroad, and that is not a cheap proposition these days. Apart from the basic expenses of education, you are required to spend a considerable sum of money on accommodation, traveling, food, and stationery. All the additional expenses may be funded by the amount that you get from a personal loan.

  1. Finance Home Renovation:

Every home needs to be renovated periodically to keep it habitable. Home repairs and renovations need funds that may not be readily available as disposable cash with you. Personal loans provide you with the much necessary funds for decking up your house in the New Year.

  1. Debt Consolidation:

You may be having a number of outstanding loans in the market with a high rate of interest. In the New Year, you may resolve to opt for a large, low-interest personal loan to pay off your high-interest debts. By this consolidation of your debts, you actually end up saving money. At the same time, you save yourself the hassle of servicing multiple loan accounts.

  1. Fund Planned Medical Treatment:

You may need to get an expensive medical treatment done. Funds from a personal loan can finance such treatment in the New Year.

Eligibility Criteria

While you plan to take a personal loan for any of the reasons mentioned above in the New Year, you need to know the personal loan eligibility criteria. There are some generic documents that must be submitted along with the application.

Along with a personal loan application, you need to submit your Aadhaar card, passport, or voter card to establish your credentials. These documents prove your identity. Also, they serve as address proof.

As an applicant for a personal loan, you need to prove that you have the financial wherewithal to pay back the EMI. For this purpose, you need to furnish proof of your income. Normally, a minimum salary of Rs. 15,000/- makes you eligible for a personal loan. To substantiate your income, the last six months’ bank statement and last three months’ salary slip must be submitted.

Personal loans are a suitable means to fulfill your desires in the new year. However, you must not lose sight of the fact there is going to be an added burden of EMI that will come on. The personal loan interest rate that you need to pay annually is around 11%. Lending institutions have put up personal loan EMI calculators on their official websites. Check them out before applying for a loan.

Read Also: How to Maintain Financial Stability in the Case of Home Catastrophe