Loans and money lending have been a part of the banking system for well over 4000 years at this point. Over the years, it has offered significant opportunities to those in need by providing them with instant cash availability. While the history of lending is not quite as positive, the potential for it has witnessed increased growth in recent years, where easy credit availability has made it possible to secure your health, buy a house, buy things to better your quality of life and many others.
This has been made possible in part due to personal loans. While even the term loan tends to scare away many individuals, borrowing using a low interest personal loan online within your means can open up a world of opportunities otherwise unavailable due to lack of finances. This article will explore all you need to know about personal loans, including how the Aug’24 budget has impacted personal loan interest rate in India.
What is a personal loan?
A personal loan is a sum of money borrowed by an individual from a lender in exchange for the promise of repayment of the principal amount in addition to interest in the form of monthly payments, or EMI. EMI, or equated monthly instalments, is the sum of money a borrower needs to repay the lender each month to clear away the loan at the predetermined date.
A personal loan is typically unsecured, meaning the borrower does not have to set up any collateral, such as putting their house or vehicle as a mortgage, but the return interest rates are higher than secured loans. A personal loan India can be availed based on the monthly income, debt-to-income ratio, specific lender’s rules, etc. This, along with being able to freely use a personal loan for any reason, makes it a valuable asset.
How has the August 24 budget affected personal loan interest rates?
The August 2024 budget has not significantly impacted personal loan interest rates as the RBI has kept the repo rate steady at 6.5% to deal with high inflation. With Indian banks charging interest rates ranging from 9.3% to 24%, according to Forbes, individuals seeking low interest personal loan online can easily do so. This is because, currently, although the rate has not increased, there is no guarantee that it won’t in the near future.
Where can a personal loan be used?
A personal loan can be availed from a bank or a registered NBFC and used for several different purposes ranging from loan consolidation to using it for weddings, education, vacations, buying or renovating a home, etc. Due to its wide range of uses, personal loans are prevalent worldwide, meeting unmatched demands in recent years and having easy credit availability. From being able to buy your dream home to getting a preferred gadget, it is beneficial to get a personal loan as long as it is within one’s means and they are borrowing responsibly.
How do you get instant personal loan disbursal?
If you are looking for an instant personal loan disbursal for your specific needs, you can easily download the Stashfin app from the Google Play Store or Apple App Store and follow the given instructions for quick loans.
- Sign up using your mobile number.
- Add your personal details to check your credit limit- you can get a loan from ₹1,000 to ₹5,00,000.
- Complete the KYC for the next steps.
- You can choose the loan amount you desire and choose a repayment period ranging from 3 to 36 months.
- Fill out the required information and submit the relevant documents to request a loan.
Stashfin makes it hassle-free, with loan availability within minutes from anywhere at any time, but you will only need to pay interest on the amount you have borrowed. It is, however, essential to remember that the EMI instant loan depends on the interest rate and repayment period. While longer repayment durations keep the EMI low, they can result in higher interest paid over the course of the loan repayment, which needs to be kept in mind.
Conclusion
In 2024, loans have become necessary for a vast majority of Indians to fulfil their dreams. This is why it is beneficial to note that the RBI has not increased the repo rate from 6.5%, thus not affecting the loan interest rate. With low-interest personal loan online, it is possible to fulfil your desires without having to worry about finances. So take charge of your finances and achieve your dreams today with a loan from Stashfin.