Many of the potential as well as existing personal loan borrowers come up with the doubt if they can alter the purpose of the loan after the loan disbursal. Here we get the answer the answer to your question.
To the relief of many of the personal loan borrowers, the answer is Yes! It is not mandatory to stick to the purpose of the loan. A personal loan online is a multipurpose loan. Hence altering the purpose of the loan is never questionable by the lender. As a personal loan is a multipurpose loan, it can be availed for any kind of purposes. Unlike a home loan, business loan or education loan, a borrower is not restricted to stick to the purpose of the loan.
The lender sometimes may ask you the purpose of the loan while some other times you may not be asked about the usage of the loan. The use of the loan amount can be changed even after the disbursal of the loan. Here we have shortlisted some of the best uses of a personal loan.
The Best Uses of a Personal Loan
Taking a Holiday
Taking holidays have become quite expensive in our country. Starting right from booking tickets, lodging, activities etc. altogether needs a quite good amount of money. Most of the times, we plan and save money to take vacations. But sometimes we need to cancel travel plan or we need to postpone it, because of the shortage of fund. One of the best uses of a personal loan is taking a holiday. You can alter the purpose of your personal loan to take a holiday.
Renovating Your Home
Another appreciable use of a personal loan is renovating your home. You can use a personal loan amount to renovate your home or extend a new room. If you use a personal loan for the renovating your home, you will enjoy tax rebate on the personal loan. So if you are thinking to alter the purpose of your personal loan, your home renovation can be an excellent use of the same.
Pursuing Higher Education
The education system of the present time is getting expensive day by day. You can use your personal loan to take up a professional course. The survival and growth in professional life require skills to be enhanced from time to time. So using the personal loan amount to pursue your new degree or certification course is an appreciable use of the personal loan. Moreover, just like home renovation, if you use a personal loan in education purpose, it will be tax-free.
Fighting Financial Emergencies
In our lives, many such occasions may arrive when we are in an urgent need of money. One may need urgent financial boosting for a business purpose, an urgent trip, expenditure in marriages which are beyond budget, medical emergency and so on. In all those cases, urgent monetary support becomes very important. One can take help of personal loans to come over those difficult situations.
Bearing Marriage Expenses
You can make alternate use of your personal loan amount by preparing for an upcoming marriage. Marriages in India are often expensive. It takes a quite huge amount to complete the whole function. If you are thinking of altering the purpose of your loan, you can use it in marriage purpose. You can make an advance payment for the caterer, book the marriage venue or purchase the gold for the marriage. In this way, you can make the best use of your loan amount.
Paying Costly Debts
If you are carrying a debt which is costlier than your personal loan, you can use your personal loan amount to pay off your existing loan. In this way not only you will save in your interest outgo, but you also enjoy better services for the new loan too. If you have a credit card unpaid bill, you can pay it off with a personal loan. Personal loans are cheaper than credit card loans hence you will be able to save a considerable amount.
The Last lines
Though such situations are rare, this may happen that after the disbursal of the loan you feel that the purpose of the loan is not worth. On those times, you will not be able to return the money to the lender as before completion of 12 months, the pre-payment is not accepted. In such scenarios, one must find favourable use of loan amount. If you can’t find any definite use of the money, soon the money will be used up without your knowledge. So find a good cause to use your personal loan and enjoy the best benefits of the same.