While most of you try to save adequate funds to meet your crucial financial goals, there may be times you are short of funds when it comes to achieving those goals. Here is where personal loan can rescue you. You can use a personal loan to meet your various financial crunches for events like ward’s higher education, wedding, travel and tourism plans, home renovation, etc. Its unique features include quick processing within 2-7 days or within hours in the case of instant personal loan, minimal documentation, and no security requirements etc.
Checkout some of the crucial factors indicating why personal loan has gained popularity for meeting your monetary mismatches:
- Easy access
Applying for a personal loan is easier these days. Number of lenders today provide personal loans if you are an existing customer at attractive rates along with discounts on processing fee and other perks. Personal loan online platforms and many banks provide pre-approved personal loans based upon your credit repayment behavior and credit score. Thus, when compared to secured loan options like loan against property or loan against security, personal loan is far easier to obtain if you meet the personal loan eligibility criteria set by the lender.
- Quick processing
Owing to its unsecured nature, personal loan is disbursed within 2-7 days of application submission. Also, few lenders offer instant personal loans also known as preapproved loan, which is available on the same day of loan application.
- Zero security required
Personal loan is an unsecured credit option, which means you are not required to provide any security for the borrowed proceeds. However, owing to its unsecured nature, lenders give higher emphasis to your credit score, past repayment capacity, income etc., to judge your eligibility.
- Minimal documentation
As personal loan is an unsecured credit option, it needs minimal document submission. Lenders do not need to conduct any asset verification, which is necessary in the case of secured options. You just need to submit your address proof, identity proof, and income proof to get the loan.
- No end use restriction
Absence of end usage restriction of proceeds is one of the biggest benefits of personal loan. Unlike home loans or car loans, which are designed to meet specific purposes, personal loans can be used for any personal or business needs.
- Flexible repayments
Loan tenure for personal loan ranges anywhere from 1 to 5 years with few lenders willing to offer a higher tenure of up to 7 years. Availability of flexible tenure helps you decide your personal loan EMI as per your repayment capacity and fund inflows. To determine an optimum EMI, you can use the personal loan EMI calculator, which accurately calculates your EMI based upon your input.
Conclusion
With personal loan, you can easily meet your fund mismatches and give wings to your financial goals to achieve them within time. However, before you hit on the personal loan apply button, ensure to determine your EMI, and select an optimum repayment tenure as per your repayment capacity. Avoid availing higher loan amounts than required, as personal loan interest rate is higher than secured loan options. Doing so will result in higher interest cost outgo. Lastly, ensure to compare amongst lenders by visiting online financial markets to avail the best personal loan interest rate based on your credit score, past repayment history and other parameters.
