Personal loan and its different advantages

A personal loan is an unsecured loan that is offered to a consumer to meet their various personal needs, such as renovating a house, marriage, appliances, buying a vehicle, among others. This is offered after verifying the ability to pay, especially the source of income and also according to your credit history. A nominal processing fee will be charged and the sum based on a person’s ability to pay will be credited to their account. In fact, the loan payment is made through fixed installments that also include interest and for fixed terms. The icing on the cake is that these days personal loans are a smart option, as they do not require going through a lot of formalities and tedious paperwork. Most financial institutions and banks now offer personal loans and the interest rate is also quite reasonable.

Discover the different benefits

• Easily Available: Obtaining a personal loan is no longer a challenging matter. Almost all financial institutions and banks offer it at a reasonable interest rate. Compared to other loans, it is convenient and easy to obtain.

• No intermediary or agent involved – to make use of a personal loan one will not require the help of an agent or intermediary. This will avoid unnecessary expenses and delays. A person can go directly to the financial institution or the bank for the purpose.

• Unsecured loan: in fact, this is an unsecured loan. Here no collateral is needed to make use of the loan. In fact, all that is needed is the ability to pay it back.

• Less processing time: Because it is accessible without any collateral or security, the processing time required to obtain it is naturally less compared to other loans.

• Loans for all purposes: in this form of loan it is not mandatory for a person to specify the reason for which they will use the money.

• Minimal paperwork – Obtaining a loan will not require any asset verification or other forms of certificates and evidence that include a lot of paperwork, as no property is mortgaged.

• Offers and schemes: different financial institutions and banks continue to advertise special offers and schemes for personal loans, especially for professionals such as architects, doctors, public accountants and the like.

• Amount and tenure: These loans are generally granted and range from Rs 15000 to Rs 20 lakhs which differ from bank to bank. Refund can be made via EMI

The bottom line is that instead of borrowing money from a credit card, it is always better to choose a personal loan, as the interest rate is comparatively lower. So get your biggest benefits.

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