5 ways millennials can use a personal loan to meet their financial needs

The changing times also lead to changed spending and borrowing habits. Millennials’ financial preferences are very different and interesting compared to older generations. India’s rising working generation is increasingly turning to personal loans to fund their travel plans or to buy high-priced durable goods. Millennials and young borrowers in the 18-30 age group are driving demand for personal loans, according to a 2020 report by credit bureau CRIF High Mark. Their share of personal loan applicants has increased from 27 percent to 41 percent in the last two years.

The younger generation understands that personal loans are one of the best ways to secure funds for unplanned expenses like a medical emergency or even planned expenses like weddings. Also, getting a personal loan is easy and quick, especially if you have your documents in order and a good credit history.

Decision on a loan amount
The right loan amount is crucial, which makes it easier for you as the borrower to repay the loan. Accordingly, the first step is to calculate your likely EMI with it
Personal Loan EMI Calculator
. All you have to do is fill in some details to perform some permutations and combinations to get the right loan amount for yourself.

After you have decided on the loan amount, you can apply for a loan through Net Banking on the Kotak Mahindra Bank website, at an ATM or at a branch near you. Then there are also pre-approved personal loans for existing bank customers that can be availed within minutes.

Because personal loans are unsecured loans, you are not required to post any collateral or security. The bank will examine your income and expenses, employment details and credit history to understand your ability to repay and penalize an amount accordingly.

Here are the five situations in which a personal loan can come in handy for your needs.

say your vows

Your wedding is one of the most eventful days of your life. Commemorating this personal milestone requires great celebration. However, this may require you to bear significant overheads in terms of event fees, decorations, lodging, food, clothing and jewelry, and more, depending on how lavish you want the celebration to be. Get it fast
marriage loan
may be a better option rather than disrupting the long-term savings you have earmarked for other financial goals.

upgrade lifestyle

Be it major repairs or renovations to your home, be it for parties, other celebrations, or just to soothe your soul, a personal loan can be a practical choice. It can also come in handy when opting for the latest smartphone or want to swap out an old laptop for the latest version on the market. Aside from these discretionary lifestyle expenses, there may also be critical lifestyle needs such as buying or upgrading home appliances like a refrigerator, washing machine, or air conditioner. Taking out a personal loan and paying it back in easy EMIs is a more convenient option than spending an entire month’s income at once.

To pay medical bills

Let’s admit that the group health insurance offered by establishments is often insufficient and medical expenses are increasing daily. Additionally, COVID-19 and its comorbidities have made doctor visits much more frequent and costly. If you’re going through a medical crisis and you or a loved one need hospitalization, you can use a personal loan as a medical loan to help pay the bills. Repayment can be made in comfortable installments over a longer period of time.

Take advantage of a quality loan with no restrictions

The emergency doesn’t strike with a warning, and when you’re faced with an urgent and unforeseen expense, you have two choices: either reach into your emergency fund or take out an emergency loan. If you choose the former, you may run out of money and need more. However, this risk can be reduced if you take out an emergency loan. Depending on your eligibility and credit profile, you can access a quality loan amount with this option. Additionally, emergency loans are not subject to any restrictions on how you consume them. You can use these funds to cover all kinds of expenses.

To satisfy your wanderlust

Whether it’s an impromptu weekend getaway to a hill station or a well-planned international expedition, travel credit can help you live life to the fullest. A recent report by online lending marketplace IndiaLends found that the number of personal loans taken out to fund travel has increased by 55%. Of these, 85% appear to be millennials seeking personal loans between Rs 30,000 and Rs 2,50,000. As options like remote and hybrid work become the new normal, the line between work and free time is blurring with each passing day, and Millennials are making the most of this opportunity to take a break and sate their wanderlust.

You can also consider a personal loan if you need to borrow for other reasons, such as B. to consolidate various informal loans or credit card fees. Taking out a personal loan at a relatively lower interest rate than a credit card can be a wise choice.

Choosing the right banking partner

A personal loan can now be applied for directly from your smartphone or computer without the hassle or risk of going to a bank branch. However, make sure to stay away from unregulated digital lending institutions that may result in you being scammed or your information misused in various ways. Extortionate prices and fees aside, the hassle of unscrupulous elements can become a major stressor.

Instead, opt for a trusted banking partner that not only offers a loan but also transparency on loan prices and other terms. If you opt for a personal loan from well-established institutions like Kotak Mahindra Bank with a rich heritage, the repayment schedule can also be customized to suit your ability to repay apart from the fact that you can apply for the loan with just a few clicks.

With such ease and convenience at your fingertips, worrying about immediate financial needs is a thing of the past. Apply for a personal loan today!

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