The wave of coronavirus adversely impacted not just individuals but nations. The economy witnessed a slowdown, in the long term leading to a recession. In such situations, when people are losing jobs and there is no clarity on what the future has in store, it is important to take some important decisions to manage your finances.
A personal loan is one of the best ways to get the necessary finance and get through unexpected situations. An unsecured financial instrument that does not require any collateral is your best bet during the recession to finance your emergencies.
Why Take a Personal Loan?
While there are various financial instruments we can use to borrow money, a personal loan sometimes is the better choice. Some of the reasons why a personal loan is a great option are:
1. Higher loan amount: A Fullerton India personal loan application online route enables you to get upto INR 25 lakhs* in an easy and convenient manner.
2. No collateral: In tough situations, keeping an asset as security can be a bad decision. Instead getting a loan without any collateral can be beneficial, especially when you need a small amount.
3. Flexible interest rate: If your credit score is good, a personal loan can help you in getting the loan at low interest rates.
4. Quick loan: with so many online lenders, a personal loan has become a quick and easy means to funds. You can apply for an application online and with minimum documentation get your loan amount disbursed within 1-2 working days.
5. Multi-purpose: The pandemic has caused various kinds of emergencies like medical, housing, etc. While other loan money can be used for a specific purpose, a personal loan is multi-purpose and can be the solution to all your problems.
How does personal loan help?
A personal loan is a very useful financial instrument and listed below are some ways in which it can help you:
1. Debt consolidation
2. Emergency medical expenses
3. Home repairs
4. Wedding arrangements, and more
The uses of personal loans are many. However, during recession, the biggest reasons to get a personal loan are often debt consolidation and medical emergency expenses.
1. Debt Consolidation: If you are under a lot of financial pressure, due to multiple debts, then debt consolidation can be a good option for you. Instead of paying the heavy credit card interest rate, you can opt for a personal loan that will help you in debt consolidation.
Through this, you can consolidate all your high-interest debt like credit cards, into a single payment. However, make sure to weigh the pros and cons of debt consolidation before you apply for a loan with Fullerton India.
2. Emergency Coverage
During this recession, you might have faced some emergency expenses that you cannot avoid. Some of these being:
- Medical Bills
- Home repairs, and more
As these items are required to be covered quickly, you need to get money faster. With a personal loan, you can get funds in a day or two.
Conclusion
During a recession it is important to protect your well-being, so make sure that you think twice before applying for a personal loan. You should be able to repay the EMIs on time. So, save money and ensure a stress-free and financially independent lifestyle. You can use the personal loan interest calculator available online to get a better picture of your finances.
