6 Life Situations When a Personal Loan Helps

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Life throws our way several scenarios wherein we plan as well as invest our hard-earned income in favor of our financial security for the future and realize as well as achieve our dreams. But I am sure many of us have faced times where it is just impossible to move forward for many reasons, or well, if we even plan properly there are factors such as inflation that can prove to be quite unpleasant.

Generally, the funds invested towards achieving a particular financial goal do not counter the increasing living costs.

In such rough times, a personal loan can be your savior. A personal loan in UAE provides you with quick and hassle-free access to funds when you might need them the most. The disbursal of these loans is as quick as 48 hours, and sometimes even within 24 hours, that is if you meet the eligibility criteria while having the completed documentation along with a good enough credit score.

Life Situations in which a Personal Loan Is Useful

Below are 6 scenarios you may face in life when a personal loan in UAE can prove to be quite helpful:

Contingency Requirements

  • At times, you could be faced with life’s unexpected surprises that could end up draining your funds. Ideally, it is suggested for you to maintain at least 6 to 24 months of your regular monthly expenditures as a contingency reserve, after accounting for also any EMI payments that you might have.
  • However, if you have not planned anything for your contingency reserve, and you require funds immediately, a personal loan in UAE can be your savior. You need not use your existing funds that have been saved and built towards a special financial goal over the years. A personal loan is an unsecured loan in nature – this means that it does not require any collateral or guarantor against obtaining it.

Medical Expenses

  • In case of a medical emergency, generally, you and your family members should be having sufficient coverage with a health insurance policy and/or the financial strength to meet the medical bills that will be charged.
  • However, if you do not have either of these, you can consider opting for a personal loan in UAE to help you make the payments of the various medical bills with a high loan amount, flexible payment tenures, and the best rate of interest.

Taking Your Dream Vacation

  • In the hustle and bustle of our daily lives, we all put in our best work to make a living and after that spending quality time with our loved ones. And most of the time, vacations can be quite fun when they are last minute. This is when a personal loan in UAE can come in to be handy and turn your dream vacation into a living reality.

Incurring Festival Expenses

  • UAE is a land of diverse cultures and of course, numerous festivals. Festivals are known to be an auspicious time to invest in assets by many cultures.
  • During these festive seasons, we all wish to pamper our loved ones with the much-deserved goodies and gifts be it gadgets, home appliances, jewelry, watches, and even more. However, during this time, the financial budget can be quite the constraint. This is when opting for a personal loan can save you.

Expenses for a Wedding

  • This is definitely a grand occasion to save for and requires regular savings and investments to achieve.
  • However, quite often to celebrate this occasion of two people and families coming together, the wedding expenses can go over the budget. Every family member wishes their loved one to have the best wedding day ever. After all, a wedding can be a big milestone to achieve in the life of an adult.
  • You do not need to worry if you find yourself short of funds in order to meet some of the wedding expenses. You can easily avail a personal loan in UAE that can help you manage almost all of the expenditures incurred in a wedding.

Getting Your Home Renovated

  • Ahead of all the festive seasons and the wedding seasons, we all wish to take our homes a notch up with elegant and aesthetic interiors. If you are out on the run looking to redo your home, but your plans have been on a pause because of financial constraints, then opting for a personal loan in UAE might help you take them forward.

Wrapping it up!

A personal loan in UAE can give you access to finances that can be used to fulfill almost any purpose. To ensure that you get a personal loan as quickly as possible, consider following the below-mentioned tips:

  • Make sure that you maintain a good and healthy credit score, as it portrays your repayment capacity to the lender.
  • Avoid submitting numerous loan applications it will only hamper your chances of being approved for one.
  • Ensure that you have not raised a personal loan anytime in the past 6 months as this does not portray a picture of you having healthy finances.
  • Make sure your EMI payments are not taking up as much as 40 to 50% of your net pay.
  • Avoid getting yourself in any credit card debt to make all timely payments with utmost discipline.
  • Try and maintain a balance between unsecured and secured loans since they weigh on your score.

Moreover, when taking up a personal loan in UAE do not just see if you meet the eligibility but also see your requirements and needs. It is always best to be realistic because only you know your repayment capacity the best. There is no point in overshooting your budget and being unable to honor your EMI payments later. Missing your EMI payments can end up increasing your costs with higher interest on the default along with a late fee, penalty fee, and other related charges.

As the income-earner of your family, while you work every day to do the best for your family, keep your family in the loop about any borrowings and ensure you have sufficient coverage. Realistically, in case of any unexpected emergency, the money from your insurance policy is a financial safety net for your family.

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