Five unexpected uses for personal loans

Personal loans are mostly used to finance major purchases and consolidate debt, but they’re a lot more versatile than they’re given credit for.

Here are five other ways to use a personal loan.

1. Start a side hustle

   A side hustle can help to supplement your income, but you may require financial assistance to cover the initial costs.

   A personal loan could provide the cash injection you need to get your small business up and running.

2. Pay medical expenses

   Unpaid medical bills can be overwhelming, especially when you’re unwell. However, a personal loan can help.

   As well as paying your hospital and medical bills, a personal loan could act as a financial buffer throughout your recovery.

3. Green home upgrades

   For many Kiwis, climate change is top of mind, and although there are many ways to go green in the home, some of these expenses can be costly.

   A personal loan can fund environmentally-friendly home upgrades while also adding value to your property.

4. Secure a classic car

   Most motor loans come with age restrictions, which can prevent you from purchasing a classic car, or a motorcycle or boat.

   Personal loans offer greater flexibility and can help you seal the deal on your dream vehicle.

5. Skip the extra costs

   Saving for a house is no easy feat, and depending on your lender, you may need to take out lenders mortgage insurance (LMI) if you do not have enough saved for your deposit.

   By using a personal loan as part of your deposit, you could avoid this extra expense and reduce the amount of interest paid over the loan term.

To find out more about personal loans, contact your local Mike Pero Adviser today.