There are times when people require instant funds without any hassle. It can be due to any medical emergency, purchasing any essential electronic appliance or renovating your abode.
In the current era, one of the top reasons people go for personal loan is a medical emergency. As the cost of medical facilities is increasing with time, even those who are equipped with health insurance face a tough time paying the bills. However, there are certain other requirements to avail a loan.
What is a personal loan ?
As the name implies, it is a type of loan that, in simple terms, is used for an individual’s personal purposes. It is granted to a borrower for a variety of personal needs which might include covering unexpected expenses, financing home renovation or purchasing any expensive electronics.
Further, this type of loan cannot be compared to a house or car loan. This is because these are secured loans that require collateral, whereas this type of loan is unsecured and offered based on the borrower’s creditworthiness and ability to repay.
It is pertinent to mention here that these loans come with a fixed rate of interest, a set tenure and fixed monthly payments. The amount an individual can borrow here depends on their creditworthiness and the lender’s policies.
Top 5 reasons to get personal loan?
Minimal and Hassle-free documentation
One of the most significant loan benefits here is minimal documentation. If you apply online, the documentation is entirely digital and paperless. So, it’s just about downloading the right application on your smartphone.
An Instant Personal Loan nowadays offers a flexible repayment schedule. It starts from 12 months and can go up to many years. Therefore, one can gain access to this type of loan easily without worrying about repayment.
(Tip: Choose a tenure that lets you optimize your monthly outgo as per your needs.)
No collateral required
As mentioned above, these are unsecured loans, so the borrower need not provide any collateral as security. This element makes them accessible to everyone who has a regular income source.
Easy online process
The days when a loan meant a short trip to the financial institution. Nowadays, it is just about an application on your internet-enabled smartphone that makes everything much easier with just a few taps.
The Best Personal Loan in India is usually disbursed within 24-72 hours. Therefore, they are one of the best financial products for meeting urgent cash requirements. However, keep in mind that first, you should meet the eligibility criteria and have a good credit score to get access to the loan quickly.
As per several stats, the requirement for an instant personal loan has witnessed a recent surge in our country. This is because people require instant funds without any hassle to fulfil their requirements. So now you are aware of the most common type of loan to consider if you find yourself in a situation where you need additional finances to accomplish a short- or long-term personal goal.