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The 5 Most Popular Reasons to Take a Personal Loan

BY Team Loanstreet

Updated 18 Jun 2021

Due to the common beliefs we are often very judgemental when it comes to taking personal loans. For sure, a personal loan can be a powerful tool when it comes to providing benefits for you to manage your financial obligations. Let’s find out the top 5 reasons people choose to take a personal loan.

What's covered in this article?

1. Medical Issues

How often have you found yourself wondering how you will cover the cost of Emergency treatment? For instance, if you find yourself suffering from an unforeseen and unpredictable health issue with such a huge amount of burden printed on the medical bills, you might struggle to pay the bills on time.

So you are now in a situation and must decide what is the best way to solve your cash flow issue and enable you to find emergency funds if you have yet to get any insurance cover for yourself.

Instead of just waiting and worrying about how to pay your medical bills, you could consider taking a personal loan to cover your medical expenses immediately.

When it comes to applying a personal loan, we recommend you to start comparing with different banks to make sure that you’re getting the best personal loan for your budget and situation. Using a Personal Loan Comparison Wizard is the fastest way to get the answer for yourself by a few clicks, and making the decision easily.

2. Renovation/Home Improvement Costs

Many of us dream of adding new features and taking steps to create our dream home. Applying for a renovation loan may not be possible for everyone as these often come as part of a package with a home loan.

The ideal solution would be to save up enough funds to cover your renovation costs. If you are planning on making small changes and using the DIY method this should be fine but for larger renovation costs, you may want to consider taking a Personal Loan. Generally, financing through a personal loan will have lower costs compared with a home loan.

3. Debt Consolidation

One of the most common reasons for taking a personal loan is to consolidate existing loans/debts into one single loan. Debts such as credit cards, personal loans and overdraft on your bank account can all add up in paying a variety of interests but you also have to spend time budgeting your money in order to pay them back on time. By consolidating these debts into one personal loan, it will help you to save interest and better plan on paying back with a grand total loan amount. Think twice and always be a smart consumer to get the best interest rate available to your higher loan amount.

4. Wedding

Planning your perfect wedding is often a very stressful task especially when it comes to the financial side. Is taking out a personal loan to cover the cost of your wedding a wise decision? Under some circumstances, a personal loan can speed it up especially when you have a date in mind for your wedding. On top of that, if your wedding returns (received gifts +  cash value) can cover the cost, why put on hold for too long?

If you have yet to ask the BIG question, have a look at our article (How Much Money Is Needed For A Marriage Proposal) for fun ways to propose and the costs involved.

5. Education

If you are thinking of going back to university to pursue your studies, it’s always a good decision for your career growth in the future. However, if you’re short of savings, you might put this on hold or gave up in the process as you were unable to get a student loan.

A personal loan will be the practical solution to cover your tuition fees and extra expenses during your study. So instead of putting it on hold for too long, why not pursue it as a part time study as long as you have a full time job so that you can meet the monthly repayments requirement.


Personal loans are often easy and fast to apply for and having a lump sum of cash can help you out in many ways as well as achieving your goals. By reducing costs of your lifestyle and sticking to a repayment plan, you will be able to pay back your personal loan while completing a big task that you’ve always wanted to accomplish.


Remember to use our Personal Loan Comparison Wizard to select the best personal loan to suit your needs.

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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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