6 Reasons why Personal Loan is Dominating Other Loans
Personal loans can be used for large investments, debt consolidation, emergency expenses, and other financial emergencies. Over the years, the Indian economy has grown enormously, and it has dramatically influenced the personal finance sectors. The essential element of digitization in the context of instant personal loans is convenience and speed. As compared to other loans, personal loans have become one of the necessary financial tools.
Now, you don’t have to visit your lender to apply for a personal loan. You can opt for an online process for the application from the comfort of your home. Taking a personal loan in India is the most reliable means for finding a satisfactory resolution for all your financial shortfalls.
So, let us look at the top 6 reasons why a personal loan is dominating other loans –
1. Fast Approval and Loan Disbursement
When a person is applying for a personal loan, it means that he/she wants the fund quickly and cannot wait for long. So, the lenders understand this and offer a quick application process. The super-fast processing of the personal loan also leads to swift disbursal of the money. You can get approval in a couple of minutes, and the money gets transferred to your account within a day. In case of emergency, the borrower can easily rely on an instant personal loan to get money quickly. If you have maintained an excellent credit score in the range of 700-750+, then you can even get a lower personal loan interest rates.
2. Clear off Dues
Debt consolidation is a significant reason for taking out a personal loan over any other loan. If you are carrying multiple loans or outstanding credit cards with different interest rates and balances due, that will eventually become financial trouble. So, a personal loan can assist you in such scenarios. When you apply for a personal loan and use it for consolidating your debt, you’re merging all of those outstanding dues into one monthly payment. Combining all the debt makes it simpler to work out a timeframe to repay your balances without getting confused. One of the best benefits of using a personal loan to pay off your credit card dues is the lower interest rates. With lower rates, you can decrease the amount of interest you pay, and the amount of time it takes to clear off dues.
3. No Tedious Paperwork and Easy-To-Meet Eligibility Criteria
Availing a personal loan required no tedious paperwork. There isn’t any need to worry about the documentation, as it’s minimal. You only need to submit some necessary documents related to personal and income profiles such as KYC documents, address proof, age proof, and salary slips. And the eligibility criteria are not very strict. Any individual aged between 21 years to 60 years can easily avail of a personal loan. But, you must maintain a good credit score to avail of exclusive benefits.
4. Flexible Repayment Tenure
The flexibility in repayment and smaller monthly installments makes personal loans a massive success in India. It allows the borrower to spread the loan cost over a convenient tenure. The loan tenure ranges from 1-year to 5-years, and the borrower can choose the tenure at their convenience. Thus, it reduces the borrower’s financial stress, and he/she can quickly repay the loan with flexible monthly EMIs. As a result, borrowers enjoy a hassle-free experience without making any changes in their monthly budget.
5. Higher Loan Amount
The most fantastic thing about availing a personal loan is you don’t need to worry about meeting your financial requirements. Lenders let you apply for as high as Rs.25 lakh to fund your expenses without having to opt for any other financial alternatives.
6. Cover Multiple Expenses
There is no restriction on using the loan amount for various purposes. You can use it for multiple reasons as per your convenience without any hassle. Most borrowers use the loan amount to cover wedding expenses, business expansion, home renovation, international trips, children’s higher education, medical emergencies, and debt consolidation. Using a personal loan as per one’s wishes has made it extremely popular than other loans.
A personal loan can be utilized to cover multiple expenses without having to use a collateral. There are various reasons to avail a personal loan – even beyond the reasons listed above. Just remember that no matter the situation, it must be paid back eventually.
So, when you avail of a personal loan to clear off credit card dues or cover your wedding expenditures, you borrow money that must be repaid, with interest. With numerous lenders in the market, you can get a personal loan at a competitive interest rate. Instant approvals, convenient repayment options, and competitive interest rates have made personal loan a viable option. It is a smart way to consolidate debt and make large purchases, but make sure to utilize this financial resource responsibly.