A personal loan is an unsecured loan offered to a consumer to meet various personal needs such as home renovation, marriage, home appliances, vehicle purchase, and more. This is offered after checking one’s ability to pay, especially the source of income and also according to their credit history. A nominal processing fee will be charged and the amount based on an individual’s ability to pay will be credited to their account. In fact, the payment of the loan is made through fixed installments that also include interest and for fixed periods of time. The icing on the cake is that these days personal loans are a smart option since they do not require you to go through a lot of tedious paperwork and paperwork. Most of the financial institutions and banks offer personal loans nowadays and the interest rate is also quite reasonable.
Discover the different benefits
• Easily Available: Obtaining a personal loan is no longer a challenging matter. It is offered by almost all financial institutions and banks at a reasonable interest rate. Compared to other loans, it is convenient and easy to obtain.
• There are no intermediaries or agents involved, to make use of a personal loan it will not be necessary to take the help of an agent or intermediary. This will avoid unnecessary costs and delays. A person can approach the financial institution or bank for the purpose directly
• Unsecured Loan: This is actually an unsecured loan. Here no collateral is needed to make use of the loan. In fact, all that is needed is the ability to pay the money back.
• Less Processing Time: Since it is accessible without any collateral or security, the processing time required to get this is naturally less compared to other loans.
• Loans for all purposes: in this form of loan it is not mandatory for a person to specify the reason for which the money will be used.
• Minimal Paperwork – To get a loan you will not need any asset verification or other forms of certificates and proofs that include extensive paperwork since none of the properties are mortgaged.
• Offers and schemes: Different financial institutions and banks continue to announce special offers and schemes on personal loans, especially for professionals such as architects, doctors, public accountants and the like.
• Amount and tenure: These loans are generally given and vary from Rs 15000 to Rs 20 lakhs which differ from bank to bank. The return can be made through EMI
The bottom line is that instead of borrowing money with a credit card, it is always better to choose a personal loan as the interest rate is comparatively lower. So take advantage of its maximum benefits.