Curious about what you can use your personal loan for?

Personal loans – also known as unsecured loans – are a popular form of credit that allows eligible people to receive a lump sum of money upfront, and subsequently, pay back an agreed fixed amount each month.

Unlike secured loans, the nature of unsecured personal loans means that the credit you borrow is not tied to any major assets, such as a house or a car, and therefore these assets are not liable to be repossessed in the event of failure to meet repayments. This also makes personal loans a viable option for non-homeowners, although they do tend to involve more stringent eligibility requirements.

There is no end the possible uses of personal loans. They can be used to borrow money for almost any purpose – let’s take a quick look at a few familiar scenarios…

Home improvements

Your home is your greatest financial asset, and so it makes perfect sense to add value to it wherever possible. A personal loan can be a great way to fund much-needed home improvements – from installing a new kitchen or conservatory, to converting your loft or replacing windows with double glazing throughout the house.

Debt consolidation

We speak to many people who have applied for credit with various different lenders, which has left them with a complicated repayment schedule and a lot of stress when it comes to staying on top of their outgoings each month.

In this scenario, a personal debt consolidation loan can help to collate a person’s existing debts into a single fixed monthly repayment. Managing one payment each month maybe easier than managing six or seven, each with a different rate of interest to take into consideration.

A new car or motorbike

Along with their home, a vehicle is one of the most important assets that a person can own. This makes buying a new car or motorbike a major investment for anybody, at any age, and an essential purchase for those who are required to commute to work on a daily basis.

Whether it’s a new motorbike for an individual, a reliable used car for a family, or even the repair or restoration of an older vehicle, an unsecured loan could help to get you on the road sooner rather than later.

Wedding day

The happiest day of your life is also one of the most expensive. And just as some wedding days are arranged years in advance, many ceremonies are organised within the space just a few weeks.

If you’re looking for quick access to funding for whatever reason, a personal loan can help to ease the financial burden of your wedding and honeymoon, and take away a lot of the stress involved with the planning and organisation. For most couples, it’s a worthwhile investment to mark the start of their journey as man and wife in exactly the way they have always dreamed of.

Dream holiday

For most of the year, we tend to spend our days working, paying bills and saving money towards something we really want – like the holiday of a lifetime. The problem is that putting away enough money in the kitty each month is often easier said than done.

If you feel like the majority of your income always goes towards covering the cost of bills, mortgage, food, petrol and other essentials, a tailored personal loan could help to cover the full cost of a much-needed break as soon as you need it.