Personal loans can be an excellent solution to navigate through a financial crunch. You can easily apply for a personal loan and handle expenses, be it:
● Medical bills
● Wedding expenses
● Travel costs
● Debt consolidation
Moreover, personal loans are collateral-free and come with a simple application process. As such, it eliminates the need to put your assets at risk while ensuring you get quick access to funds. Read on to learn about the benefits of personal loans that make it an easy and convenient choice.
Advantages of Getting a Personal Loan
Here are some top benefits of a personal loan that make it an easy and affordable option:
Quick Amount Sanction
Obtaining a personal loan is a smart option if you need quick funds. This is because many lenders offer personal loans in just a few hours, sometimes in minutes.
However, this opportunity depends on the approval process, which varies across lenders. To ensure you can get the quickest access to funds, apply for a personal loan with the right lender. This indeed has lenient criteria and a quick turnaround time.
Attractive Interest Rates
Many lenders offer personal loans at attractive interest rates, allowing you to lower your borrowing costs. Moreover, you can negotiate and enjoy a low interest rate if you are a creditworthy borrower. This means you can get the required funds without straining your budget to handle repayment.
High Loan Amount
Today, financial institutions offer personal loan funding of up to ₹50 Lakhs. This high-value limit makes personal loans a viable option for a wide variety of expenses. However, remember that the amount offered depends on your application and is at the sole discretion of the lender.
Flexibility on End-Use
If you are looking for loans with versatile usage, personal loans are indeed the best option. You can apply for a personal loan for any requirement, as the funding comes with no restriction on the end use.
This means that you can utilise this loan amount as per your requirement. You can use the loan amount to consolidate your high-interest debt, make a down payment for your home, pay for a wedding, etc.
No Collateral Needed
When getting a personal loan, you do not need to provide collateral since it is unsecured. This means that you can get access to a high amount without risking your asset. To get a personal loan, all you need to do is meet the eligibility criteria and submit the basic documents required.
This feature only adds to the accessibility of the loan, making it an easy option to avail. However, keep in mind that some lenders will have strict requirements, and it may not always be an easy experience. This is why you must compare various options to find the best one.
Easy Eligibility Criteria
One significant feature that makes personal loans easy to get is the eligibility criteria. While lenders have their eligibility requirements, some standard criteria make the loan a lot more accessible.
Here is a glimpse into the standard eligibility criteria you need to meet to apply for a personal loan:
● You should be an Indian citizen
● You should have a CIBIL score of 685 or above
● You should be between 21 and 65 years
● You should have a stable income source as a salaried or self-employed individual
Minimal Requirements of Documents
Another advantage of getting a personal loan is the minimal paperwork. One reason why the documents required for a personal loan are few is that you need not submit any collateral. As such, you need not submit the documents for your asset.
While the requirements vary across lenders, the majority of them want you to submit just the basic documents to prove your identity and income source.
Given below are some common documents required for a personal loan:
● Passport-size photographs
● Identity Proof
● Resident Proof
● Salary slips for the last 3 months
● Bank statements for the last 3 months
Easy Repayment Options
Personal loans have flexible repayment options, making them easier to manage. You can choose a loan repayment tenure that ends in a few months or lasts for a few years. This gives you the flexibility to choose a period that results in convenient and manageable repayment instalments. In short, you can repay the loan easily without risking your financial future.
Simple Application Process
With advancements in the industry, most lenders allow you to apply for a personal loan online. Many lenders offer an end-to-end digital process, enabling you to apply from anywhere and at any time.
Moreover, the steps are easy and simple, and something you can complete in just a few clicks. Although the steps to apply for a personal loan may change based on the lender you choose, you can start your application through the lender’s website.
Fill out the application form with the required details. They assess your eligibility and ask you to submit the required documents. Upon approval and agreement, the amount will be disbursed to your account.
As you can see, personal loans are a versatile option to finance your expenses. But before you apply for a personal loan, be sure to research and compare the available options. Lenders offer different loan terms depending on your application and eligibility.
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