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

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Changing times are also leading to changes in spending as well as borrowing habits. The financial preferences of millennials are very different and interesting compared to the older generations. India’s budding working generation is increasingly choosing personal loans to finance their travel plans or purchase big-ticket consumer durables. According to a 2020 report by credit bureau CRIF High Mark, millennials and young borrowers in the age group of 18-30 years primarily drive personal loan demand. Their share in the personal loan applicants has gone up from 27 per cent to 41 per cent in the last two years.

The younger generation understands that personal loans are one of the best ways to secure 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 good credit history.

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

After you have made up your mind about 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, which can be availed in a matter of minutes.

Since personal loans are unsecured loans, you do not need to surrender collateral or security. The bank will look at your earnings and expenditure, employment details, and credit score to understand your repaying capabilities, and sanction an amount accordingly.

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

Saying your vows

Your wedding is one of the most eventful days of your life. Commemorating this personal milestone calls for grand festivities. However, that might need you to incur significant overheads in terms of venue tariff, décor, accommodation, food, apparel and jewellery, and more based on how lavish you want the celebration to be. Getting a quick
marriage loan
can be a better option instead of disturbing the long-term savings that you have earmarked for other financial goals.

Upgrading lifestyle

Be it vital repairs or renovating your home either for festivals, other celebrations, or just to pamper your soul, a personal loan can be a handy choice. It can also be useful when you want to opt for the latest smartphone or swap out an old laptop for the newest version in the market. Other than these discretionary lifestyle spends, there can also be critical lifestyle needs like the purchase or upgrade of home appliances like a refrigerator, a washing machine, or an air conditioner. Taking out a personal loan and paying back in easy EMIs is a more convenient option than spending the income for an entire month in one go.

To pay off medical bills

Let’s admit that the group medical policy offered by workplaces is often not enough, and medical expenses are rising every day. To top that, COVID-19 and its comorbidities have made doctor visits far more frequent and costly. If you find yourself in a medical crisis and you yourself or any of your loved one needs hospitalisation, you can use a personal loan as a medical loan to pay off the bills. The repayment can happen over a period of time in easy instalments.

Avail a high-value loan with no restrictions

Emergency doesn’t strike with a warning, and when faced with an urgent and unforeseen expense, you have two options: either dip into your rainy-day funds or take an emergency loan. If you choose the former, you may run out of money and require more. However, this risk can be mitigated when you take an emergency loan. Depending on your eligibility and credit profile, you can access a high-value loan amount with this option. Moreover, emergency loans bear no constraints on how you consume them. You can use these funds to meet any kind of expenses.

To satisfy your wanderlust

Whether it is 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 loans marketplace IndiaLends revealed that there has been a 55% increase in personal loans taken for funding travel. Of these, 85% appear to be millennials seeking personal loans ranging 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 every passing day, and millennials are making optimal use of this opportunity to take a break and satisfy their wanderlust.

You can also consider a personal loan if you need to borrow for other reasons, like consolidating various informal loans or credit card dues. Borrowing a personal loan at a relatively lower interest rate than that of 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 that you steer clear of unregulated digital lending entities that can lead to you getting scammed or your data getting misused in several ways. Other than the usurious rates and fees, the hassle of dealing with unscrupulous elements can become a major stress factor.

Instead, opt for a trusted banking partner that offers not just 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 having a rich legacy, the repayment schedule can also be tailored as per your repayment capacity, other than 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 concept from the past. Apply for a personal loan, today!

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