What are common reasons for personal loans?

Personal Finance · 20 Dec 2019

Many people take out personal loans so they can get to the position they want to be in quicker.

Many people take out personal loans so they can get to the position they want to be in quicker.

There are many reasons to take out a personal loan, both practical and aspirational. So long as you budget carefully for your repayments, you may find that a loan helps give your life the push it needs.

If you're wondering what the most common reasons for applying for a personal loan are, here are just some of the ways Harmoney helps people achieve their financial goals.

Business loans

Starting your own business is a great way to set yourself up for life. When you're your own boss, you make the decisions and you make the money. Unlike in salaried positions where your earning potential is capped, running your own business gives you the opportunity to earn big.

The downside to this is that a business can cost a lot to get started. Whether you're looking to fit out a cafe, buy the tools for a trade or pay for a professional website, business expenses quickly rack up.

A business loan helps you to get started sooner, which means you can start making money for yourself more quickly. A business loan from Harmoney is actually an unsecured personal loan that’s taken out in your name to use for business expenses, rather than a loan taken out in the name of your business.

Car finance

Having your own form of transport is a necessity for many Australians. Whether it's to drive your family around, get to job interviews or carry out your day-to-day work tasks, cars, SUVs and utes are a major part of the Aussie economy.

Being without a set of wheels can be a major headache. How do you get your child to their doctor's appointment? How can you get to a new job to pay your bills? Or how can you meet your clients onsite.

Car loans give you the money you need to get a new vehicle now, which you can repay over months and years rather than all in one go.

Wedding loans

According to the government's MoneySmart website, the average wedding in Australia costs more than $36,000 – with some bridal magazines giving a number well above that.

Many of us only get married once, so we want to make it a day to remember. Unfortunately, the cost of the venue, the alcohol and the clothing/accessories alone can cost tens of thousands. And that's before you consider entertainment, photography, flowers, transport and hair/makeup.

Even if you manage to make a few concessions, it can still be an expensive venture. But rather than give up on the wedding of your dreams, applying for a wedding loan can give you the extra bit of help you need to make your special day that little bit more special.

Home improvements and renovations

Home decor and functions often have a limited lifespan and there comes a time when you need to make changes.

But again, this doesn't come cheaply. While there are small changes that won't break the bank, like a new fence or a fresh coat of paint for the walls, if you want to make a major upgrade you'll have to dig deep.

According to tradie site hipages, kitchen renovation costs start at $22,000 and a basic bathroom renovation costs $5,000 to $15,000. If you want something a bit fancier, the price goes up dramatically.

Saving up that sort of money can take a while. A home improvement loan is one way to get the cash you need more quickly, allowing you to spruce up your house and build the home of your dreams sooner.

Debt consolidation loans

Not all loans are made to fulfill dreams or buy physical items. Sometimes, they're taken to save money and correct previous mistakes.

Finances can be tricky to understand, and it's easy to apply for a credit card when you probably shouldn't. If you have multiple debts – whether from loans or credit cards – this is usually much more expensive than having a single loan.

That's where a debt consolidation loan can help. It combines all your debts into one loan, so you'll only have one monthly repayment to remember. You're likely to have a better interest rate too, saving you money in the long run.

Applying for a loan that helps you

If a personal loan could help you – whether that's to start a business or fund your ideal wedding – Harmoney can help make that happen. Apply to our marketplace and you could be one step closer to making your dreams a reality.

Read about what other Harmoney borrowers have used their personal loans for:

Finding some financial relief

Making up for lost time

A Day to Remember

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