September 21, 2023
Top 10 Reasons for Taking Personal Loan in India

Printed on : March 01, 2023

Cash is an simple necessity for assembly each our wants and needs. It’s crucial for all our primary necessities and luxuries that add consolation to our lives. We want funds for all of the particular events, emergencies, and some other cause 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 might 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 function with out the necessity to specify them to the lender. No property have to 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 engaging rates of interest. They provide versatile reimbursement choices to make the EMI burden lighter on the borrower. You’ll be able to foreclose the mortgage at any time after 6 months with none prepayment penalty.

Causes Folks Select Private Loans

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

  1. House Renovation – All Householders have a gentle stream of bills associated to their houses and the massive 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 possibility the place you may pay solely the curiosity for the primary three months whereas common EMIs begin subsequently. This may scale back money outflow by over 40% in the course of the first three months providing you with a breather.
  1. Shopping for an costly cellphone – Flashing the newest cellphone 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 thirty days on excellent balances whereas private loans can serve the identical function at half the associated fee. Is it any marvel why the youthful technology 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 provide you with an irresistible package deal and the supply will get over within the subsequent few days. Your fastened deposit will mature 6 months later. What do you do? Properly, you simply avail of a private mortgage and go on that vacation. You’ll be able to repay the EMIs comfortably. You’ll be able to even foreclose the mortgage after six months when your FD matures with none prepayment penalty. That’a win-win answer, isn’t it? 
  1. Wedding ceremony – Your marriage ceremony is arising and there’s nothing flawed in planning large ceremonies. Properly, it does price large bucks although. A private mortgage can turn out to be useful for this particular as soon as in a lifetime event. You’ll be able to simply pay it off over the tenure of the mortgage and it serves you the awkwardness of borrowing from pals/household. That is another excuse why folks go for private loans.
  1. Buy of bikes – Having a snazzy bike generally is a large thrill for a teenager. Utilizing a private mortgage to fund the acquisition is a wise concept. You’ll be able to pay it off over the tenure of the mortgage and it gives you mobility. You’ll be able to even use it to purchase an electrical bike and do your bit for the atmosphere.
  1. Buy of laptop computer – A laptop computer is now not a luxurious. It has grow to be a necessity because the world has moved to the digital age the place every thing occurs on-line. With distant working and earn a living from home gaining priority and the rise in on-line schooling and freelancing alternatives, a laptop computer is a necessity. That is one more large ticket expense for which individuals select private loans.
  1. Medical emergency – Emergencies don’t include warnings. If you find yourself confronted with a medical emergency and want to lift funds instantly, you may belief an internet private mortgage to come back to the rescue. Since these loans are credited inside 24 hours, you may tide over your private disaster comfortably. You even get flexibility of paying solely the principal part for the primary three months as the conventional EMIs start after that interval.
  1. Rental Deposit – Relocation to a brand new metropolis and discovering a rented premises to stay in generally is a difficult proposition. Householders cost 6-12 months lease as safety deposit and it could be so much 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. It is advisable pay solely the curiosity over the tenure of the mortgage on the finish of which the quantity will probably be straight refunded to LoanTap by the home-owner.
  1. Debt consolidation – In case you 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 should utilize the debt consolidation mortgage to seek out respite. This private mortgage will provide help to swap from a number of costly bank card money owed and transfer to a less expensive private mortgage. Private loans will provide help to to get out of the vicious cycle of bank card money owed and provide help to handle one mortgage at a time. Correct reimbursement of this mortgage will even help you in enhancing your credit score rating. That is another excuse why folks caught within the circle of debt go for private loans.
  1. Training bills – Paying for schooling bills is such an necessary exercise that can not be postpone. Getting your little one to a training institute or increased universities can price  some huge cash. If funding is a matter, you may 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 schooling. This additionally ranks amongst one of many high causes for availing of a private mortgage.


There may 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 occasions of want. If you’re an Indian citizen or resident over the age of 21 years and earn a internet 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 fundamental paperwork like PAN Card, Aadhaar Card, Wage slips / Revenue Proof and Financial institution Statements and you might be finished. 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 cause for a private mortgage, obtain the LoanTap app right this moment!!