Personal loans are unsecured loans that can be used in case of an unforeseen situation of financial crunch. Whether you have to pay off for any medical emergency or you need funds for home renovation, personal loans are your friends in need in such circumstances. Additionally, you are not required to pledge any collateral or security in order to avail a personal loan. Hence, they can be easily availed without any hassle.
Here are some key advantages of personal loan:
1. No collateral required: The first and foremost advantage of a personal loan is that you are not required to pledge any collateral or security before applying for such loans. Therefore, it can be easily availed.
2. Instant disbursal: If you have an excellent credit score and you meet the eligibility criteria of your lender, you can get a personal loan in just 72 hours. There are a few
3. Free to use the fund for any purpose: The biggest advantage of a personal loan is that unlike a home loan it can be used for any purpose. Paying for medical expenses, renovation of the house,
4. Easy documentation: Processing time and paperwork required for a personal loan are much lower as compared to other loans. If you are pre-approved for a personal loan, there are chances that you may not even need to submit any documents.
5. Flexibility to choose tenure: You have the flexibility to choose a tenure which suits you best. The tenure of a personal loan can go up to 7 years. Longer tenure means lower EMIs and vice-versa. You can use the online Personal Loan EMI calculator to decide the tenure and EMIs you want.
Personal Loan Tips:
Before applying for a personal loan, keep in mind the below-mentioned tips.
- Do your research: Before taking a loan, do some thorough research of all the options available to you. Comparing different lenders will give you a chance a good chance of finding a lender who may offer you a lower rate on the personal loan with better terms.
- Compare interest rates: Since personal loans are available without securing any collateral, the rate of interest on personal loans is relatively high. Hence, before you take a personal loan, check with several lenders to see what interest rates are being offered.
- Ask For: While you are finalizing a lender to take a loan, make sure you ask them about loan pre-payment.
ofa loan will help you save tremendously on the high-interest rate which you’d otherwise have to pay.
- Don’t Apply For Multiple Loans: Applying to several lenders for a loan in a short span of time can hurt your credit score. If you do so, lenders will get the impression that you are desperate for funds and will not be equipped to repay your loan. So, your loan might get rejected.
- Double Check Your Credit Report: Before you apply for a personal loan, make sure you have thoroughly checked the contents of your credit report. The slightest error in your credit report can affect your score negatively, which can further lead to the rejection of credit requests in the future.
How to apply for a personal loan?
The advent of online technology has made it easier and simpler to apply for a personal loan. There are several leading
Step 1: Visit your bank or aggregator’s website to check and compare loan offers.
Step 2: Apply for a personal loan on the website. Fill in your personal details along with loan requirement details.
Step 3: Post this, a personal loan representative will contact you to verify your details. He/ she will explain you the entire loan process, offers and documents required.
Step 4: If you are eligible, he/ she will fix an appointment with the bank for document pick-up. A representative from the bank will contact you and will initiate a verification process.
Step 5: After verification of documents, the sanctioned amount will be credited to your bank account.
Conclusion: Hence, the above-mentioned tips and benefits of a personal loan will surely help you to make an informed decision.