The best ways to use a 2 lakh Loan for personal financial goals

As lifestyles are improving, people have higher disposable income, abundant choices available, and, to top it all, attractive Personal Loans. The best part about Personal Loans is that they can be used for any purpose. Some uses of a Personal Loan include going for a holiday, renovating one’s house, starting a business, paying fees, or even for medical emergencies.

Whether you need funds for an emergency or a high-end purchase, a Rs. 2 lakh Loan can give you the financial fluidity you need. With flexible repayment tenures starting at 12 months, you can choose one at your convenience and go up to five years. Eligible candidates, both salaried and self-employed, can enjoy affordable Personal Loan interest rates. Here are the best ways to use this Loan amount:

1. Debt consolidation

Debt consolidation is the wisest move towards building a healthy financial future. Unfortunately, carrying multiple Loans and outstanding Credit Card bills is a perfect recipe for financial trouble. This is where Personal Loans come in and salvage your debt-laden situation. The Loan lets you make only a single payment in a month, thus making your finances more manageable.

2. Emergency funds

Emergency expenses always land in our lives at the wrong time, usually due to something unpleasant. However, the requirement to pay them is unavoidable, such as medical treatments requiring hospitalisation, emergency home renovation due to unforeseen circumstances, like a rainy season, unexpected wedding expenses, etc. Their payments lead you to dip into savings and investments. Instead, you can consider a Personal Loan that offers low interest rates.

3. Home construction

Buying a house is undoubtedly the most expensive purchase of our lives. You can invest in a piece of land, construct your house with a garden, and fulfil a big dream. Alternatively, you can also purchase a readymade home. While a Home Loan helps you with over 80% of the overall cost of the home, you can go for a Rs. 2 lakh Personal Loan if you need additional funds for the remaining 20% or construction if you choose to build a home over your plot of land.

4. Home upgradation

Upgrading our homes with modern fittings and the latest appliances and redesigning them for better space usage is the most common use of a Rs. 2 lakh Loan. An efficient way is to take a Personal Loan for home improvement or house maintenance.

5. Credit score improvement

Having a healthy credit score and history is highly important when you are looking to borrow money. Credit bureaus evaluate your credit score based on how individuals and entities manage borrowed money. Borrowers with huge credit usage or who have not repaid their past Loans on time are highly risky. Thus, consolidating your debts, maintaining a healthy debt-to-income ratio, paying your Loan on time, and so on are ways to improve your credit score.