What Can I Use A Personal Loan For? (With Examples)

There are many reasons why you might use a personal loan for. Maybe you need to consolidate debt, make home improvements, or enjoy a well-deserved vacation.

Whatever the reason, it’s essential to know what your options are.

It is easy to apply for a fast disbursement loan. But first, let us break down some of the most common uses for personal loans, with plenty of examples.

Find out if your situation requires the use of a personal loan. Keep reading below!


1) Consolidating Debt

One of the most popular reasons to take out a personal loan is to consolidate debt.

If you have multiple credit cards with high interest rates, keeping up with the payments can be difficult. A personal loan can help you by amassing your debt into one monthly payment with lower installments and longer tenure. 

Yes, consolidating your debt means a lower interest rate!

Thus, you can get out of debt more quickly.


  • You have $15,000 in credit card debt at an interest rate of 25% p.a. from multiple open facilities. Each month of not repaying your balance in full adds makes your debt snowball. However, paying the minimum balance doesn’t make a dent in what you owe.

A personal loan is helpful because you have lower monthly installments that are easy to afford. These installments will help you clear this debt in a couple of years.


2) Medical Costs

Medical emergencies cannot wait, and it would be terrible if you don’t have your emergency fund ready.

You may need a loan for medical costs not covered by insurance. For example, you may have a high deductible plan that doesn’t cover much until you’ve met your deductible. In this case, a personal loan can help you pay for medical care.


  • You have a $5,000 deductible and had to go to the hospital for an emergency appendectomy. You can pay for the surgery and avoid going into debt by taking out a personal loan.
  • You had to go to physical therapy for your back pain, but your insurance only covers $2,000 of the costs. A personal loan can help you pay for the remaining costs of physical therapy.


3) Home Improvements

Renovation loans from banks in Singapore only cover expenses up to $30,000, whereas a personal loan may get you up to six times your monthly salary.

However, some banks in Singapore do offer personal loans up to ten times your monthly income.

Besides, renovation loans go directly into your contractor’s account and don’t cover certain expenses (e.g., furniture, decorations, etc.)

That’s where personal loans save the day.

You can use a personal loan for home improvements, whether you’re doing a major renovation or just some minor changes.


  • You want to renovate your kitchen, but the end price is more than $30,000. A personal loan can help you pay for what the renovation loan doesn’t cover.
  • You want to buy new furniture for your home, but you don’t have the cash to pay for it all at once. A personal loan can help you finance the purchase of new furniture.

Looking for a fast approval personal loan? Click here to apply.


4) Emergency Cost

Emergencies disrupt your life negatively; your apartment can get infested with termites, or your car can break down. Happy “emergencies” happen too: for example, you and your partner may become pregnant.


  • You need to pay for a plane ticket home, but you don’t have the necessary funds. A personal loan can help you finance the purchase of your plane.
  • Your car has broken down unexpectedly. In this case, a personal loan can help you cover the repair cost.

For such unexpected costs, Horison Credit will be able to help you with our affordable loans.


5) Funeral

Having a loved one die is always a harrowing experience, but it can be even more difficult if you’re struggling to pay for the funeral. If you don’t have the cash on hand to pay for a funeral, a personal loan can help you cover the costs.


  • Your loved one wanted a specific ceremony, but the cost of the ceremony is more than you can afford. A personal loan will cover the ceremony.
  • You want to have a headstone made, but you don’t have the cash to pay for it. A personal loan can help you finance your purchase.


6) Moving Home

Moving can be stressful, especially if you’re trying to pay for it yourself. People move for all sorts of reasons, such as job changes, family reasons, or just wanting a change of scenery.

Moving is expensive, though.

You need to pay for moving trucks, packing and storage units.


  • If you’re renting a new apartment, you must disburse the down payment.
  • If your new home lacks specific amenities, you have to remodel it. For instance, you may include wheelchair access in your new home or a baby room.


7) Holiday

While most of our holiday plans were paused due to COVID 19, we are finally allowed to travel in 2022! A personal loan isn’t just for terrible circumstances. You can also use it for fun things, like going on vacation.


  • You want to go on a cruise, but you don’t want to use your savings.
  • You want to go on a trip to Europe to celebrate your tenth wedding anniversary.


8) Wedding

A wedding is a happy – but highly costly event. You have to cover the costs of your venue, outfits, catering, and more.


  • You want to have a destination wedding. Take a personal loan to finance your plane ticket and other travel-related expenses.
  • You want a specific type of wedding gown that’s more expensive than you can afford. Don’t let money ruin your day; consider a personal loan to purchase your dream wedding dress.


9) Home Loan Down Payment

Your home loan doesn’t cover the cost of your entire property; just:

  • 90%: HDB loans
  • 75%: Bank loans

As a result, you need 10-25% of your home’s value for the cash advance. For a $400,000 BTO flat, that’s $40,000 to $100,000.

Luckily, personal loans in Singapore are capped at $250,000 or six times your monthly income (if you borrow from a licensed moneylender).


  • You’ve decided to take a bank loan and pay the cash advance using your CPF account. However, you need an additional 5% in cash – and that’s where a personal loan comes in.


Getting A Personal Loan Customised Just For You

There are various reasons why you may need a personal loan, and choosing the right financial institution is key.

Horison Credit is your best choice because we’ve been in Singapore for more than ten years. Our experience allows us to craft personalised and detailed loan plans that are suitable for you.

Where can you find us?

We are located conveniently near Chinatown MRT and offer low interest rates personal loans with no hidden fees or charges.

You can apply for a personal loan online in minutes and receive the cash you need quickly.



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