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Why People Take A Loan In India?

Taking a loan in India is often considered as an unnecessary burden. Even Bollywood movies have created a negative perception around borrowing money on interest rate. But if you choose Ruloans, you don’t have to worry about it for a bit! With Ruloans’ online application system you can get any loan of your desire without any hassle.

People in India take various types of loans as per their personal and professional needs. Banks and NBFCs across nation offer different types of loans as per the needs of their customers. Often they are offered with customized loan options. There are 5 main reasons for which people in India take loans. Let’s go through them one by one.

To buy a house

Having a house by your name is considered as a big component of your social status in India. But with increasing inflation and rising rates of property it has become impossible for a person to buy a house solely based upon the savings he or she has made over the years. Here home loans come handy. Banks and NBFCs offer home loan to construct a house, to buy an already constructed property and also to renovate or expand the existing property. Home loans are secured type of loans and one can also get tax benefits on home loan.

To finance a wedding

There is a reason why Indian weddings are called ‘big fat Indian weddings’ & that is because they are literally huge and extravagant. Wedding industry in India is a billion dollar industry and with latest trends bumping every day it’s becoming a costly affair. Even a normal wedding costs at least 10 lakh to a couple. To celebrate the wedding with utmost comfort and to fulfill the dreams of having a dreamy wedding, people in India often take a personal loan for wedding. By taking a personal loan one can get ample funds in one go and can enjoy the wedding affairs in peace.

To travel the world

India is a diverse nation and each state of India has a very unique identity in terms of culture and livelihood. Indians love to travel and explore the different cultures our country has to showcase and also around the world. But travelling from one place to another doesn’t come cheap. Even if you plan to have a budget trip, you have to pay for transport, food and accommodation. If you are planning to travel the world, you need to have ample amount of funds at your disposal. Thus Indians often take a personal loan to travel and explore the world.

To boost up their business

Indian economy is one of the world’s fastest growing economies. One of the main components of this success belongs to the businesses running in India. Be it large conglomerates or SMEs, Indians are leading their ways in every type of businesses. But to run a business smoothly everyone needs a strong financial support. Banks and NBFCs in India offer various types of business loans as per the requirement of businessmen. Thus they take a business loan to expand their venture, buy new equipments or for working capital needs.

To consolidate debt

Having a credit card, a personal loan or a car loan has become a common phenomenon in India. But when it comes to repaying their debt, people often find it difficult. Paying off multiple debts at the same time takes a toll on loan borrower’s financial planning. Thus Indians take a loan against property or a personal loan to consolidate their debts. That means they pay off multiple debts by taking one loan. This way one has to repay only one loan with one interest rate.

So which loan you want to take?

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