Personal Loan
Then you must read this guide.
Because we will be talking about Personal Loans.
We will debunk your myths about personal loans and will unfold the real picture about personal loan.
Yes, everything you ever wanted to know about personal loans is covered under one roof.
Chapter 1: What Is Personal Loan?
Personal Loan is unsecured loan advanced on the basis of your credit history and ability to re-pay the same from your personal income. It is also called as consumer loan. It is a multi-purpose loan which you can borrow to meet your immediate needs.
Do you wish to renovate your house? Or fix a car or need some funds for a holiday or your wedding? Then Personal Loan would be a reliable instrument to source some funds.
As personal is an unsecured loan, interest rate on personal loan is generally higher than home loan or car loan. Hence, you need to know your finances well in advance before you opt for one.
Chapter 2: When Can I Opt For Personal Loan?
Being a multi-purpose loan, there is no fixed time to apply for Personal Loan. Rather you can choose personal loan for almost every requirement.
Some of the reasons for applying for Personal loan are:
- Holiday/ Vacation financing
- To Finance Festive Celebrations or Needs
- Finance Weddings
- Build/ Renovate house
- Medical Emergency
- Refinancing The Home Loan
- To Fix A Car
- Financing Education
- Business Expansion
- Debt Consolidation and so on
Hence, personal loans are most preferred options for financing your immediate needs. Loan approval is quick and easy. Additionally, documentation required are minimum.
Chapter 3: Benefits Of Personal Loan
No security or collateral is required
Being an unsecured loan, there is no collateral of any asset required. It is offered on the basis of your credit history and repayment capacity.
Less documentation
Many abhor applying for personal loans due to lengthy documentation process. But personal loans are approved with minimum documentation.
Quick loan disbursement
These days it takes few hours for loan disbursement. If banks feels that you have the capacity to re-pay the loan within the stipulated time and need loan for genuine reason then getting a personal loan disbursement is easy.
Fixed rate of interest over the tenure
Rate of interest on personal loan is fixed at the start of the tenure and remains constant throughout. So, it becomes easy for loan applicants to plan for their future EMIs well in advance.
Flexible loan tenure of around 1-5 years
Personal loans offer loan tenure ranging from between 1 year to 5 years. So you have flexibility to choose your tenure as per your re-payment plan. Best is to opt for a lower tenure loan and save on the interest outlays.