March 20, 2023
Top 10 Reasons for Taking Personal Loan in India

Revealed on : March 01, 2023

Cash is an simple necessity for assembly each our wants and needs. It’s crucial for all our fundamental necessities and luxuries that add consolation to our lives. We’d like funds for all of the particular events, emergencies, and another purpose for which you will want a mortgage. LoanTap understands that one dimension can’t match all. That’s the reason they provide a bouquet of customised private loans that may cater to all of the potential wants a person could have for short-term funding. Earlier than we get into the highest causes for taking private loans in India, allow us to perceive what private loans are and the way they work.

Private loans – what do they imply to the borrower?

Private loans are unsecured loans that can be utilized for any goal with out the necessity to specify them to the lender. No belongings must be pledged as collateral since they’re unsecured loans. On-line private loans are simply out there in India. All the course of is digital and entails no paperwork and minimal documentation.
LoanTap gives private loans from INR 50,000- INR 10,00,000 for tenures starting from 6 months to 60 months at enticing rates of interest. They provide versatile compensation choices to make the EMI burden lighter on the borrower. You possibly can foreclose the mortgage at any time after 6 months with none prepayment penalty.

Causes Folks Select Private Loans

Now that what a private mortgage is and the way it works, allow us to take a look at the highest 10 the explanation why private loans are taken in India.

  1. House Renovation – All Owners have a gentle stream of bills associated to their properties and the large ticket bills like portray, remodelling, renovation, modular kitchen, altering the furnishings, which might price a bomb. This may be one of many the explanation why folks go for a private mortgage. A house renovation comes with a step-up mortgage choice the place you’ll be able to pay solely the curiosity for the primary three months whereas common EMIs begin subsequently. This may cut back money outflow by over 40% through the first three months supplying you with a breather.
  1. Shopping for an costly telephone – Flashing the newest telephone is a fad that most individuals have and that is simply one of many high the explanation why folks go for a private mortgage. Bank cards cost 2.5-3% per 30 days on excellent balances whereas private loans can serve the identical goal at half the fee. Is it any surprise why the youthful era takes a private mortgage to purchase the newest iphone?
  1. Vacation/Trip – You need to go on a trip with your loved ones to an unique vacation spot. The tour operators have give you an irresistible bundle and the provide will get over within the subsequent few days. Your mounted deposit will mature 6 months later. What do you do? Nicely, you simply avail of a private mortgage and go on that vacation. You possibly can repay the EMIs comfortably. You possibly can even foreclose the mortgage after six months when your FD matures with none prepayment penalty. That’a win-win resolution, isn’t it? 
  1. Marriage ceremony – Your wedding ceremony is developing and there may be nothing unsuitable in planning huge ceremonies. Nicely, it does price huge bucks although. A private mortgage can turn out to be useful for this particular as soon as in a lifetime event. You possibly can simply pay it off over the tenure of the mortgage and it serves you the awkwardness of borrowing from buddies/household. That is another excuse why folks go for private loans.
  1. Buy of bikes – Having a snazzy bike is usually a huge thrill for a teenager. Utilizing a private mortgage to fund the acquisition is a wise concept. You possibly can pay it off over the tenure of the mortgage and it will provide you with mobility. You possibly can even use it to purchase an electrical bike and do your bit for the atmosphere.
  1. Buy of laptop computer – A laptop computer is not a luxurious. It has turn out to be a necessity because the world has moved to the digital age the place every little thing occurs on-line. With distant working and make money working from home gaining priority and the rise in on-line training and freelancing alternatives, a laptop computer is a necessity. That is yet one more huge ticket expense for which individuals select private loans.
  1. Medical emergency – Emergencies don’t include warnings. When you find yourself confronted with a medical emergency and wish to boost funds instantly, you’ll be able to belief an internet private mortgage to come back to the rescue. Since these loans are credited inside 24 hours, you’ll be able to tide over your private disaster comfortably. You even get flexibility of paying solely the principal element for the primary three months as the traditional EMIs start after that interval.
  1. Rental Deposit – Relocation to a brand new metropolis and discovering a rented premises to reside in is usually a tough proposition. Owners cost 6-12 months lease as safety deposit and it might be rather a lot to deal with. Rental deposit loans can come to the rescue. They’re out there for tenures of 11, 22 or 33 months and are paid on to the proprietor. You must pay solely the curiosity over the tenure of the mortgage on the finish of which the quantity will probably be immediately refunded to LoanTap by the house owner.
  1. Debt consolidation – You probably have taken a number of loans and are slowed down by a number of EMIs and excessive rates of interest that are pushing you right into a debt entice, you need to use the debt consolidation mortgage to search out respite. This private mortgage will enable you to swap from a number of costly bank card money owed and transfer to a less expensive private mortgage. Private loans will enable you to to get out of the vicious cycle of bank card money owed and enable you to handle one mortgage at a time. Correct compensation of this mortgage may even help you in bettering your credit score rating. That is another excuse why folks caught within the circle of debt go for private loans.
  1. Schooling bills – Paying for training bills is such an vital exercise that can not be delay. Getting your little one to a training institute or larger universities can price  some huge cash. If funding is a matter, you’ll be able to select a private mortgage to handle your funds. It may be repaid comfortably over the tenure of the mortgage whereas your little one can profit from good training. This additionally ranks amongst one of many high causes for availing of a private mortgage.


There might be quite a few different causes for availing of a private mortgage. LoanTap merely facilitates the method by offering a fast, environment friendly, paperless, hassle-free and handy technique of accessing funds in instances of want. If you’re an Indian citizen or resident over the age of 21 years and earn a web month-to-month earnings of over INR 30,000, you might be eligible to avail of a private mortgage from LoanTap. Obtain the app, fill out an internet software and add the essential paperwork like PAN Card, Aadhaar Card, Wage slips / Earnings Proof and Financial institution Statements and you might be accomplished. The system will course of the mortgage and credit score your account in 24-36 hours. So what are you ready for? No matter be your purpose for a private mortgage, obtain the LoanTap app in the present day!!