This might be a little shocking for a lot of people since personal loans are generally to be taken when you do not have money to purchase something or even a service when you need it or want it. But that is not true. People are often under the belief that personal loans are to be taken when you do not have enough money for an expenditure. But, even if you have sufficient finances, it might be a good idea to opt for a personal loan.
7 Reasons Why Personal Loan in UAE Actually Helps You Save
- You would think that an expenditure that can be done without taking a loan is best to get done within a month. But that is not true. It will restrict your other budgets for that month and if you are relying on your credit card, then you will end up in the debt soup.
- Personal loans give you the comfort to decrease your monthly expenditure, allowing you to save more. For instance if you buy a television with the help of a personal loan, you do not have to delay your plans to invest in a mutual fund. You can do both at the same time. While you enjoy your television, you also enjoy saving in those months.
- Restricts your debts unlike credit card. You can use your credit card for EMIs and paying for a purchase, but that means it keeps increasing since it is calculated based on compound interest, although personal loan rates are higher. You ultimately end up paying more.
- Personal loans also stops you from splurging because, in your mind you have to ensure that you bank balance is good enough to pay for the personal loan installments.
- You do not have to deal with any agent or middlemen, especially if you are in UAE. You have some websites which allow you to apply for a loan online, with scanned copies of the minimum documents, saving you time and money.
- When you travel, it is best to take a personal loan and travel within those means since you have it in your mind that this is all you have, to spend when travelling, not having to touch your savings, but paying in installments, in the future. You can always use the credit card as an emergency financial aid.
- Personal loans do not require collaterals. This means you do not have to jeopardise your savings in collaterals, such as rent in the case of a house or the money that you are earning from your shares portfolio.
Finally you deserve a good time and need to enjoy the small happiness’s of life. Also personal loans can help you to finance your own wedding or help you pay off another loan with higher interests before it gets too late. Therefore personal loans are always a good idea.