With interest rates on a downward slope, you can borrow personal loan for THESE 5 key reasons. Check list here | Mint

As lending rates go southward in the wake of the RBI cutting the repo rate by 50 basis points, you can borrow personal loans so long as the purpose is strong enough. Following RBI’s rate cut, a number of banks cut their lending rates in no time. These include HDFC Bank and Bank of Baroda.

When you take a personal loan, it could be for a personal emergency or home renovation or major life events, or something else. Here we list out five key reasons for borrowing a personal loan from a bank.

Taking a personal loan: Five common reasons

I. Debt consolidation: Consumers tend to use personal loans to combine multiple high-interest debts (such as credit cards) into a single, lower-interest loan, which makes repayment simpler and affordable.

II. For renovating your house: It is common to take a personal loan to fund home improvements which includes kitchen remodelling, roof repairs, or adding new features, particularly when one does not have access to a home loan.

III. Medical bills: Medical bills particularly those not covered by insurance can prompt people to take out loans for surgeries, treatments, or emergency care.

IV. Major life events: Weddings, or moving expenses are large, often time-sensitive costs that may require quick financing through a personal loan.

V. For education: While it is common to take student loans for education, one may even rely on personal loans for pursuing short courses, certifications when financing is not available.

Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.