Personal Loans: 3 Good Reasons to Consider Borrowing for Your Next Big Expense

When you are short of money or facing a sudden shortage of money, the only thing you usually think of is taking a personal loan. There can be many reasons to take a personal loan.

Maybe you want to buy an expensive gift for your partner, you are in dire need of money, or you have an expense that you can’t afford to save for. These and many more are some of the main reasons why taking out a personal loan is not uncommon. On the contrary, it is recommended.

Here we present three main reasons why you can, and perhaps should, take out a personal loan.

Here are the top 3 reasons why you should take out a personal loan:

1. When you know you’re eager to save: Ideally, wealth advisors suggest investors save money to buy what they want. For example, if you want a rare piece of art, save enough to be able to buy it. Do you have a rare clothing collection that makes your heart skip a beat? Well, save up for a few months to buy it.

However, there may be times when you can’t afford to wait. For example, you want to give your partner a luxury watch for their birthday. What do you plan to do? Wait until their next birthday? This is not very wise advice for someone looking for a long and healthy relationship.

In this case, and for many personal reasons, you may wish to take out what is aptly called a “personal loan”.

2. Important for you: There are some things that are too important for you to ignore, but not everyone may understand your feelings. For example, you are a motorcycle enthusiast and are planning to buy imported accessories to mount on your motorcycle. It may not be easy for you to get a loan specifically for this.

It may even happen that your friends refuse to give you a loan for what they would call an “unnecessary expense”. In such a case, it is advisable to resort to the “personal loan” offered by most banks.

3. When there is an emergency:An emergency can be of any nature. You may have to pay for your child’s school fees or spend money on a loved one’s care, or on a lighter note – paying for the bachelor party with close friends before your wedding, or on a more serious note – paying for the wedding itself.

For all these urgent expenses, and some less urgent ones, you may want to consider taking out a personal loan.

The list we have compiled here is, however, only indicative and certainly not exhaustive. The reasons may be different for different people. So it is up to you to decide. After all, it is a very “personal” decision.