When is it a good idea to take out a Personal Loan?

In a perfect world, you'd never need to apply for a loan. But, as we know, life's not perfect and there will come a time when you could use the extra financial support. Perhaps your car needs major repairs, or you've decided to start a business and you need capital. These are good reasons to consider taking out a Personal Loan. A Personal Loan can help you address whatever challenge you’re facing, or help you attain a goal that you may have set, like finishing your studies. Keep reading to find out when exactly a Personal Loan is a good idea.

1. Emergencies

Sometimes, things don't go according to plan and we find ourselves in unforeseen circumstances. These might take the form of an illness, a damaged roof, an irreparable car, or even retrenchment. In times like these, a Personal Loan can provide temporary financial relief.

2. Self-improvement

Are you looking to further your studies? Perhaps you don't have the necessary funds. A Personal Loan can help you fund your studies, either to improve your career prospects or as a personal development project. Using a Personal Loan to pay for your studies is a good way to invest in yourself.

3. Start a side hustle

You could call starting your own business a form of self-improvement, particularly if it's something you've always wanted to do, but lacked the courage to get started. A Personal Loan is a good way to get your business off the ground by providing the initial capital.

4. You have a good credit score

It's easier to have your loan application for a Personal Loan approved if you have a good credit score. If your credit score is in good shape, then you should go ahead and apply for a Personal Loan. If your credit score is not exactly where it should be, you may want to take a step back and focus your energy on improving your credit score.

Take the leap!

Whether it's finally fixing that leaky roof or starting your own business, you deserve a helping hand to get things done. Starting with a Personal Loan may seem intimidating, but it's actually a good first step.

Latest on African Bank Stories

Elizabeth invites us into her home to share how she used her winnings wisely.
Zoleka reflects how her winnings helped her fund for her education and buy books for her kids.