Personal Loans are a fast and easy way to secure finance when you are faced with a situation where you find yourself in sudden need of funds. As the very name suggests, a personal loan may be used for a variety of personal needs. Peer-to-peer lending or P2P lending directly brings borrowers with fund requirements in contact with lenders with surplus funds through tech-enabled platform thereby eliminating intermediary cost. This benefit gets passed on to the borrowers who can access faster personal loans at lower interest rates. Thus, P2P lending is a new cheaper and faster source of accessing personal or business loan for borrowers otherwise dependent on high-interest rates charged by credit cards or on the unorganized sector like money lenders who can tend to be exploitative.  

Here is a list of some popular reasons for which people usually opt for a fast personal loan.

Unfunded medical emergencies

While health insurance policies should ideally provide for medical emergencies, there are some medical emergencies that one may face where the health insurance provider may not provide adequate coverage. In such a situation where you are in quick need of funds to take care of medical expenses for yourself or a family member, an easy personal loan will come to your aid.

Short-term Business Loans

Often an entrepreneur running a small or a medium scale business may find it difficult to access a traditional loan product to take care of a short-term funding gap between an order delivery and its payment or to expand the business. Such businessmen may get a personal loan to bridge the financial gap in a stress-free and hassle-free manner.

Repair work

Your home is subject to wear and tear and there are times when the damage is to such an extent that you can no longer ignore it, or you may just want your home to look awesome especially during the festival season. Providing finance for repair work at such times may be difficult and may cause you to worry. You can, however, avoid any such stress with a home improvement loan, which will take care of the expenses without eating into the sum of money you may have put aside for celebrations during the festival season.

Wedding in the family

Indian weddings are no less than festivals of sorts during which emotions run high. Even though Indian families traditionally save for the wedding of their children from when they are small, a sudden cash crunch may come to the fore at the eleventh hour. Instead of panicking at such times, it is prudent to opt for an easy personal loan to take care of expenses that you think cannot be done away with during the wedding of a loved one. Marriage Loan also saves you the embarrassment of having to ask for a loan from a relative or a friend.

Debt consolidation

Finally, personal loans may be availed of, if your debt burden has become too much to handle and you are struggling to repay multiple credit lines especially those on credit cards which charge anywhere upwards of 30% interest rate p.a. A personal loan will help not only in reducing your overall interest rate and your EMI amount, but it will also be beneficial because it will help in bringing up your overall credit score. When you take a single personal loan to consolidate debt, you can automatically pay off multiple lines of credit in full. Each time you close a loan account or pay off credit card outstanding in full, your credit score goes up. Thus a personal loan for Debt Consolidation is also often recommended for the purpose of credit repair or improve your credit score.

Apart from the reasons mentioned above you can also get a personal loan to fund a dream vacation or fulfill your desire of purchasing an expensive gadget that you cannot pay for otherwise. More than 2 lakhs borrowers have till date registered with Faircent to access fast and easy funds to fulfill their needs similar to those listed above. Faircent, India's largest P2P lending platform has facilitated disbursal of more than 25 crores worth of personal loans, providing faster and cheaper access to credit to not just individuals but also small and micro businesses.