Everyone needs money to manage their lives better. While regular income is good, at times, there are situations when you need additional funding. That’s where personal loans are usually preferred.
In India, the growth of personal loans increased from Rs. 75,088 crores in FY19 to Rs. 147,236 crores in FY22. This rise signifies that people have realised the importance of quick personal loans and how they can help them fulfil their needs and financial aspirations.
Personal loans can provide excellent opportunities to get out of debt, meet urgent expenses, and boost one’s credit score.
You can take a personal loan to meet your financial needs, from paying off your credit card debts, funding your vacation, paying for a medical emergency to financing your wedding at attractive personal loan rates.
If you take advantage of the various benefits of personal loans, you can enjoy low rates and flexible repayment plans without impacting your future financial stability.
Why a Personal Loan could be your Best Borrowing Option?
Personal loans have various advantages, including their multi-purpose usage, ease of availability, and simple application process. A few other benefits are:
1. Quick Disbursal of Funds
A personal loan can be approved instantly once the applicant applies online. Once approved, applications are approved immediately.
Securing quick personal loans from financial institutions like Fullerton India is straightforward and fast. It requires an online application, along with minimal documentation, allowing funds up to Rs. 25 lakhs.
2. No Collateral is Required
One does not need to provide any collateral or security, such as property, gold or shares for personal loans In case of personal loans, lenders approve unsecured loans based on their creditworthiness.
3. Builds Credit Score
Personal loans help build your credit score, allowing you to qualify for future credit opportunities and potentially lowering your interest rates.
If you pay the EMIs on time and in full, your credit score will reflect this, indicating you are a responsible borrower. This will boost your credit score and raise your chances of receiving loans in the future.
You can utilize the personal loan EMI calculator – a free-to-use tool available on websites of leading financial institutions – to predict your monthly costs and ensure you pay the EMIs.
4. Competitive Interest Rates
One of the essential prerequisites a borrower looks for is a lender’s willingness to offer low-interest rates.
As a result, when filling out an online loan application, a borrower can select, evaluate, and decide which option best meets their needs.
The personal loan rates offered by leading financial institutions are competitive, ranging from 11.99% to 36% per annum to manage your payments comfortably.
5. No Restriction on End use
With a personal loan, you have no restrictions on what you can do with the money once you take out the loan. You can spend it on anything you want, including paying off credit card debt, buying a car or house, funding for a child’s education or marriage.
6. Minimum Documents Required
Regarding personal loan documents, most lenders follow a straightforward pattern, attempting to keep it to a minimum. This makes it easier for you to acquire the loan, as you are only required to show minimal proof of identity, address, and income in most circumstances.
This expedites the processing of application, resulting in faster loan disbursement.
7. Easy Repayment options
Personal loan repayment is simple since borrowers can select a payback term that best meets their requirements. This also helps them repay their loan easily without burdening their finances.
Usually, the repayment term is flexible, ranging from 12-60 months, allowing you to manage your repayment schedule easily.
Who can Get a Personal Loan for Their Needs?
To get a personal loan, you must meet the lender’s criteria; however, the requirements will vary with lenders.
- A personal loan can be availed of by an Indian citizen who is self-employed or salaried
- A borrower must have a minimum age of 21 and a maximum age of 60 years to qualify for a personal loan
- A person with a monthly salary of Rs. 25,000 in Delhi and Mumbai and Rs. 20,000 elsewhere
- The loan applicant’s credit score must be a minimum of 750.
A personal loan is one of the most popular financial products available today.
Now that you know about some of the advantages of personal loans, here are a few tips to help you choose the best loan available. First, check that the amount available is within your repayment capacity.
Make sure to read all of the terms & conditions before taking out a loan. Your lender needs to provide all the information before signing the contract.
Finally, compare interest rates from reputable lenders and select the best alternative.