Investment

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

Changes in weather also lead to changes in spending as well as in borrowing habits. The financial preferences of millennials are very different and interesting compared to the older generations. The emerging generation of Indians are increasingly opting for personal loans to finance their travel plans or buy large consumer durable tickets. According to a 2020 report by credit bureau CRIF High Mark, millennials and young borrowers in the 18-30 year old age group are the main drivers of personal loan demand. Their share of personal loan applicants has increased from 27 percent to 41 percent over the past two years.

The younger generation understands that personal loans are one of the best ways to get funds for any unplanned spending 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.

Deciding on the loan amount
It is important to settle on the right loan amount, which will make it easier to repay the loan for you as a borrower. Accordingly, the first step is to calculate your likely EMI using this Personal Loan EMI Calculator. You just need to enter some details to run some permutations and combinations to arrive at the right loan amount for yourself.

After you decide about the loan amount, you can apply for a loan through 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, which can be availed within minutes.

Since personal loans are not secured loans, you do not have to give up collateral or security. The bank will look at your income and expenditure, employment details, and credit score to understand your repayment capabilities, and penalize an amount accordingly.

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

Saying your vows

Your wedding is one of the saddest days of your life. Commemorating this personal milestone requires grand festivities. However, you may need to have large overheads in terms of venue tariff, decor, accommodation, food, clothing and jewelry, and more based on how luxurious you are celebrating. Getting a quick loan for marriage can be a better option instead of interrupting the long term savings you have set aside for other financial purposes.

Lifestyle upgrades

Whether it’s important to repair or renovate your home for celebrations, other celebrations, or just to take care of your soul, a personal loan can be an easy option. It can also be useful when you want to opt for the latest smartphone or swap an old laptop for the latest version on the market. Aside from these discretionary lifestyle spend, there may also be critical lifestyle needs such as purchasing or upgrading household appliances such as a refrigerator, washing machine, or air conditioner. Getting a personal loan and paying with easy EMI is a more convenient option than spending an entire month’s income at once.

To pay medical bills

Let’s admit that the group medical policy offered by workplaces is often inadequate, and treatment costs are rising every day. Furthermore, COVID-19 and its companions have made doctor visits more frequent and costly. If you find yourself in a medical crisis and you or anyone in your loved one needs surgery, you can use a personal loan as a medical loan to pay the bills. Payment can occur over a period of time with easy installation.

Avail a high-value loan with no restrictions

An emergency doesn’t come with a warning, and when faced with an instantaneous and unexpected expense, you have two options: either swim with your funds in the rainy season 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 when you take out an emergency loan. Depending on your eligibility and credit profile, you can access a high amount of loan amount using this option. Moreover, emergency loans have no barriers to how you consume it. You can use these funds to meet any type of expenses.

To satisfy your craving

Whether it’s a spontaneous weekend trip to a hill station or a well -planned international expedition, travel loans can help you enjoy your life to the fullest. A recent report by online loan marketplace IndiaLends revealed that there has been a 55% increase in personal loans taken out for travel funding. Of these, 85% appear to be millennials seeking personal loans from Rs 30,000 to Rs 2,50,000. With options like remote and hybrid working becoming the new normal, the line between work and leisure is blurring with each passing day, and millennials use this opportunity to relax and satisfy their cravings.

You can also consider a personal loan if you need to borrow for other reasons, such as combining 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.

Choosing the right banking partner

A personal loan can now be applied right from your smartphone or from your computer, without the hassle or risk of going out to a bank branch. However, make sure you avoid unregulated digital lending entities that can lead to scams or use of your data in many ways. Aside from usurious rates and fees, the inconvenience of dealing with unscrupulous elements can be a major stress factor.

Instead, choose a trusted banking partner that offers not only a loan, but also transparency in loan pricing and other terms and conditions. When opting 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, besides being able to apply for the loan. with just a few clicks.

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