June 13, 2024
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Highly Rated Advantages of Personal Loan that You Must Know

For situations that call for emergency cash, a Personal Loan can make a superhero entry and save the day. Personal Loans are one of the most accessible solutions for availing cash in a short time and for any purpose. These loans are unsecured; hence, applicants don’t need to provide an asset as collateral to the bank or NBFC.

Lenders require customers to hold a high credit score which vouches for their credibility. Usually, banks and NBFCs sanction Personal Loan online to those who carry a credit score of 750 or above. Not only salaried, but self-employed individuals can also opt for Personal Loans to address their cash flow constraints.

Advantages of Personal Loan

NBFCs also provide pre-approved offers to their existing customers on Personal Loans, home loan, business loans, and a host of other financial products. Pre-approved offers make the process of availing finance easier and also, reduce the time taken for the same.

In addition to the above, customers can also avail other benefits of Personal Loans like:

1. High Financing Option

Banks and NBFCs lend up to Rs. 25 lakh as Personal Loans that can be utilized for multiple purposes.

2. Flexible Tenors

Personal Loan tenors range from 12 to 60 months, thus, providing flexible repayment solution to customers.

3. Instant Approval and Quick Processing

Some lending institutions approve the loan within 5 minutes and process it in 24 hours. Owing to such rapid disbursal, Personal Loans can come to the rescue for all emergency situations.

4. Minimal Documentation

When you apply for Personal Loan, you have to provide only the following documents:

  1. KYC documents – Aadhaar Card, Voter ID card, PAN card, Passport, Driving License, valid photo ID card from the employer.
  2. Address proof – KYC documents with permanent address, latest electricity/telephone/gas/post-paid mobile/water bill.
  3. Salary slips not more than 2 months old.
  4. Bank account statement not more than 3 months old.
  5. Self-employed individuals have to provide income tax returns and audited turnover of their business for at least 1 year.

Personal Loan Criteria

The Personal Loan eligibility criteria for salaried customers are: age should be between 25 and 58 years and employed with a public or private enterprise. For a self-employed individual, the criteria include age between 22 and 55 years and a business vintage of at least 3 years. With these benefits, those availing a Personal Loan can use it for situations like:

a) Debt Consolidation

For self-employed individuals, paying off debtors in due time is crucial. Not repaying them can hamper the relationship between the business owner and his/her vendors. The latter may reduce the line of credit or even may permanently stop doing business with the company.

Thus, it can bring massive inconvenience to the owner and may also result in his/her bankruptcy. Not only just businesses, but salaried individuals can also face a situation where they have to pay off outstanding debts immediately.

For such situations, availing Personal Loans can be immensely helpful. With a single loan, they will be able to clear off all the existing debts. An EMI calculator can further help them to plan the repayment of the loan.

b) Wedding

Getting your children married in a grand ceremony is every parent’s dream. However, many utilize all of their savings in realizing the dream exhausting all the saved money.

Taking a Personal Loan in such situations can be a beneficial alternative owing to its quick processing time and affordable interest rates. Such funds can make way for a Big Fat Indian Wedding without the need of draining your hard-earned money saved for the future.

c) Medical Emergency

Unforeseen circumstances like a medical emergency can arise without any prior intimation. Such a situation requiring surgery can call for immediate funds and that too, a substantial one.

Thanks to a Personal Loan EMI calculator, individuals can evaluate their loan repayment instantly. Thus, they don’t have to use all their savings or look for cash from friends or family. Owing to the above features and advantages, a Personal Loan is one of the go-to solutions for Indians to avail instant financing.

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