Which situations are practical to take out a personal loan?

Have your expenses have piled up and put you in a sticky situation, and you have no choice but to borrow from the bank?  

You have two options. If you’re not interested in buying an asset such as a car or real estate, your other option is to take out a personal loan or get a credit card.

The main determinant regarding the most suitable option for you is your current position or situation. Do you need quick money in a relatively small amount or a large amount at once? It is important to note that personal loans have a repayment period of 7 years, unlike credit cards, which are due for repayment within a grace period of 45 to 58 days only. 

Below, we will tell you when a personal loan is the best choice to consider.

1. Consolidation of Debts

If you have a lot of debt you’d like to do away with, you can unite it, pay it off with the loan amount, and then start paying off the loan itself. 

2. Wedding Expenses

If you’d like to get rid of wedding and furniture expenses, then taking out a personal loan is quite suitable. This is especially practical if you have the option of transferring your salary to the bank in which you will apply for the loan. In this case, you will not need to worry about the repayment process because the bank will withdraw it automatically from your bank account.

t is important to note that personal loans have a repayment period of 7 years, unlike credit cards, which are due for repayment within a grace period of 45 to 58 days only. 

3. Travel Expenses

If you are a newlywed and would like to spend you your honeymoon outside Egypt or an avid adventurer who wants to discover the world, why not consider taking out a travel loan that covers all your travel expenses? This is a type of personal loan that is not particularly well-known but entirely feasible.

4. Home Renovations

Are you a new homeowner, or do you want to spruce up your current home with new décor and furniture? In both cases, a personal loan is a great option to help you with home renovation expenses.

5. Baby Expenses

Suppose you’re waiting for a new baby and can’t keep up with the many expenses in store. In that case, taking out a personal loan will undoubtedly support you with the first expenses of giving birth, allowing you to purchase all your new-born’s needs without you having to worry. Moreover, you can repay the loan in installments in whichever time period is convenient for you.

To find out more about the expenses of a new baby, check out How Do You Prepare and Manage Your Expenses with a Child at Home?

Apply for a personal loan now for free and in minutes using Faydety’s Personal Loan Finder.