Why is it a good idea to opt for a personal loan?
Ups and downs are one of the undeniable realities of life. Anyone can come across a sudden financial needs or emergency no matter how much secured we are. But only a few of us are aware of the right thing to do at such crucial moments. We can find plenty of solutions for a single problem in today’s technologically advanced world. So, let’s know in depth that how can we sail smoothly from any financial crisis?
The first thought that comes into our minds when we think about the financial crisis is the loan. But there are few myths about loans. People usually think that getting the loan is a hectic and time-consuming process. It will require lots of efforts and paperwork. Usually, they are unaware of that, in the present day, many types of loans are available in the market. Some of them can be availed easily such as a personal loan.
What is a personal loan?
The personal loan is a type of cash loan provided by banks to cater any personal need of the borrower. The bank issues this type of loan without taking any collateral security from the borrower in return and can be repaid through flexible instalment options.
Now you should be thinking about what is unique in a personal loan and how is it better than any other loans? Let’s have a quick glance at some salient features of personal loan:
Characteristics of a personal loan:
- A bank grants personal loans within the shortest period of applying. The actual time of processing differs from bank to bank. For example, one can get Indiabullspersonal loan within 4 hours of applying for it. Indiabullsalso provides this loan within 10 seconds if the loan is pre-approved by the bank. The maximum time in which borrower will get cash in their account is 72 hours.
- You can get this loan without mortgaging any of your precious assets to the bank. The borrowers who don’t have anything to offer for collateral security can also apply for the personal loan.
- You can avail this loan with little paperwork, and you only have to submit some relevant documents if you are applying for personal loan.
- It is very useful in case of emergency as you can get instant financial help through the personal loan.
- One can flexibly utilize this cash for any personal yet legal purpose. Be it education, medical treatment, marriage, buying an accessory or any other personal use. The borrower is not entitled to give any explanations in this matter to the lender.
- The personal loan comes with low-interest rates as compared to the interest rates of credit cards. You can easily get attractive interest rates in case of having a good credit score in the bank.
- If you are taking personal loans for a longer duration, then it can also boost your credit score in the bank.
When should you apply for the personal loan?
Now you must be wondering about the right time to opt for this loan. Let’s cast away your confusion by highlighting some perfect occasions when you can go for personal loans:
- You should choose it in case of a medical emergency or financial loss. You can take support from this loan after some accident or any loss due to natural calamity.
- It is useful for higher education. Now you should not hesitate before choosing medical, MBA or any other expensive course. You can even go abroad for education by taking the personal loan.
- You can take it to buy some expensive item such as phone, furniture, T.V. etc.
- It can be helpful in starting your own business. You can easily opt for entrepreneurship without worrying about finances.
- You can take the personal loan for travelling or fulfilling any dream which requires a huge amount.
Things to know before taking a personal loan:
You should be aware of some important things before applying for personal loan. The below-mentioned points must be kept in mind if you want to opt for this loan:
- Charges: The borrower will have to pay the loan processing charges at the time of taking the personal loan. Apart from it, if you fail to submit the instalments on time, then you will have to pay the penalty charges which can differ according to the delay and bank rules.
- Eligibility criteria: Every bank set unique eligibility criteria before providing loan for the proper security and assurance of repayment by the borrower. One must read all that on the bank website before applying for the personal loan. Some common points of eligibility are: you should be an earning individual; you must have an adequate salary if you are employed and some age limit set by various banks.
- Documents: A few documents are essential for acquiring a personal loan. You have to submit all these documents for the successful release of the loan. These are identity proof, address proof, bank statements of the previous 3 months, and latest salary slip if you are availing Indiabulls personal loan. You can browse all these details from the official website of your bank.
- Interest rates: There is a high risk from the bank’s end as they are providing the loan without taking any collateral security from the borrower. So, the interest rates can be high as compared to other loans. But you can talk with the bank and provide security if you have any such asset for lowering the interest rates.
- Terms and conditions: You must read all the terms and conditionsframed by the lender before applying for the loan. You can understand them better by talking to the bank representatives.
It’s time to say goodbye to all your financial problems and embrace your dreams by breaking all the constraints of money. You can also opt for other loans but the personal loan can be best solution to various problems.