Due to changing lifestyles of the people and rising inflation, extra money is always required apart from salary. You need funds to buy a medical emergency / new gadget / machine / child’s education / wedding or expensive gifts for your close ones / higher education and renovate your home. But it is not necessary that we have money whenever we need it. Personal loan is the best option for such situations, by which you can fulfil all your needs.
Why Personal Loan?
Personal loans are unsecured loans. Because to take them, you do not have to keep anything as a guarantee in lieu of the loan. This means that compared to other loans, there is no risk in it because nothing has to be kept as a guarantee.
Guarantees are usually required in other loans and there is risk. If you are unable to repay or are unable to repay the amount, then the lender has the right to forfeit what you had guaranteed as a guarantee. But there is no such risk in personal loans. Not only this, lenders are more vulnerable than customers.
Apart from this personal loan, there are many options available to meet your needs, including loans from family members or friends, credit card loans, loan / mortgage loan against property, equity loans and your savings which are mutual funds, fixed deposits. , Insurance or things kept in the form of gold. However, personal loans differ from these for several reasons.
Features of personal loan
Most of the top banks offer personal loans. Taking this loan is quite easy and its interest rate is also economical. Many banks are providing completely online personal loans, from which you get the loan amount in a few minutes or hours. Its process is completely online, including the part of the document. You can avail this loan easily and without any hassle.
No security or guarantee needed
In case of personal loans, there is no need to keep any security or guarantee against the loan. This is beneficial for those who cannot guarantee in lieu of loan. Even if people have a guarantee, but it is still risky. So ordinary people can also take it because there is no risk involved.
Can be taken for different purposes
Personal loan is multi purpose loan. It can be taken for different purposes and you do not have to tell about it. It can be taken for any personal work like business refinancing, higher education of the child, family leave, buying gadgets and medical emergency. There is no limit to using it. You can use it wherever you want and in whatever way you want.
The requirement of documents in personal loans is very limited. As stated above, nothing should be guaranteed in this loan. So there is no need for documents related to the property and their verification. Consequently, processing of personal loans does not take much time.
Large loan amount
When you take a personal loan, you can also take a large loan amount. Usually, you can take a loan of 50 thousand to 10 lakh rupees through a DSA (direct selling agent) like us. It is fantastic that you will get this amount as a loan and no guarantee will have to be given.
Affordable interest rate
Personal loan interest rates are quite economical. Many of us think that its interest rates are much higher than other loans. But personal loan is the only loan which is very flexible to use and no guarantee is required for this. All these factors increase the risk for the bank. So there has been some increase in the interest charged to reduce the risk, which is enough.
How to choose the right personal loan?
After comparison, choosing the right lender for personal loan is most important. It is important to understand how it works like interest rates of different banks, any type of loan given – secured / unsecured, fixed and variable, line of credit. You can compare products based on ratings by looking at the bank’s application checklist.