5 Ways Millennials Can Use a Personal Loan to Meet Their Financial Needs

Changing times also lead to changes in spending as well as borrowing habits. The financial preferences of millennials are very different and interesting compared to older generations. India’s budding working generation is increasingly opting for personal loans to fund their travel plans or purchase expensive consumer durables. According to a 2020 report from credit bureau CRIF High Mark, millennials and younger borrowers between the ages of 18 and 30 are primarily driving demand for personal loans. Their share of personal loan applicants has risen from 27% to 41% over the past two years.

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

Decide on the loan amount
Securing the right loan amount is essential, which will make it easier for you as the borrower to repay the loan. Accordingly, the first step is to calculate your likely EMI using this Personal Loan EMI Calculator. You just need to enter a few details to perform certain permutations and combinations to arrive at the right loan amount for yourself.

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

Since personal loans are unsecured loans, you do not need to post collateral or collateral. The bank will look at your income and expenses, employment details and credit score to understand your repayment capabilities and sanction an amount accordingly.

Here are the five situations in which a personal loan can be practical for your needs.

say your wishes

Your wedding is one of the most eventful days of your life. The commemoration of this personal step calls for great festivities. However, this could require you to incur significant overhead in terms of fare, decoration, accommodation, food, clothing and jewelry, and more depending on how lavish you want the celebration to be. Getting a quick wedding loan can be a better option instead of disrupting long-term savings that you have reserved for other financial goals.

Improve lifestyle

Whether it’s vital repairs or renovations to your home, whether it’s for festivals, other celebrations or just to pamper your soul, a personal loan can be a practical choice. It can also be useful when you want to upgrade to the latest smartphone or trade in an old laptop for the latest version on the market. Along with these discretionary lifestyle expenses, there may also be critical lifestyle needs like purchasing or upgrading household appliances like a refrigerator, washing machine, or air conditioner. Taking out a personal loan and repaying in easy EMI is a more convenient option than spending the income for an entire month all at once.

To pay medical expenses

Let’s admit that the collective medical policy offered by companies is often not enough and that medical expenses are increasing every day. To top it off, COVID-19 and its comorbidities have made doctor visits much more frequent and expensive. If you find yourself in a medical crisis and you or someone close to you needs hospitalization, you can use a personal loan as a medical loan to pay the bills. The repayment can occur over a period of time in easy installments.

Get a high value loan without any restrictions

Emergency doesn’t come with a warning, and when faced with an urgent, unforeseen expense, you have two options: dip into your bad weather funds 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 mitigated when you take out an emergency loan. Depending on your eligibility and credit profile, you can access high value loan amount with this option. Moreover, emergency loans have no constraints on how you consume them. You can use these funds to meet any kind of expenses.

To satisfy your wanderlust

Whether it’s a spontaneous weekend getaway at a mountain resort or a well-planned international expedition, travel loans can help you get the most out of your life. A recent report from online loan market IndiaLends revealed that there has been a 55% increase in personal loans taken out to fund travel. Of these, 85% appear to be millennials seeking personal loans ranging from Rs 30,000 to Rs 2.50,000. With options such as remote and hybrid working becoming the new normal, the line between work and leisure fades away with each passing day, and millennials are making the most of this opportunity to take a break and indulge their wanderlust.

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

Choose the right banking partner

A personal loan can now be applied for directly from your smartphone or from your computer, without the hassle or risk of going to a bank branch. However, be sure to avoid unregulated digital lending entities that can scam you or misuse your data in several ways. Along with usurious tariffs and fees, the hassle of dealing with unscrupulous elements can become a major stressor.

Instead, opt for a trusted banking partner that not only offers a loan, but also transparency in loan pricing and other terms and conditions. When you opt for a personal loan from established institutions like Kotak Mahindra Bank with a rich heritage, the repayment schedule can also be tailored according to your repayment capacity, in addition to being able to apply for the loan in 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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