As unsecured financing options that do no lay any risk on one’s assets, personal loans have evolved to be one of the most preferred financing avenues for many across income groups. These advances are easy to avail and come with simple terms, many of which can prove favourable for the borrower in the long run. The only catch to availing a personal loan is that you must be financially sound to make timely repayments of the advance and carry minimal risk associated with past repayment habits.
Furthering the cause of beneficial borrowing, lenders provide these advances at attractive rates, making the advance affordable too. In the present economic scenario, where income has been restricted and financing unbalanced, personal advances have saved people from falling into financial miseries. With repayments made easy, it is convenient to manage a personal advance today more than ever. When availing the advance, it can help to know the associated features, benefits and application procedure related to the loan.
Top Features of Personal Loans
Financing of high quantum
Reputed lenders provide high-quantum personal advances of up to Rs.25 Lakh to eligible candidates. All you need to do is meet the specified eligibility requirements of the lender. Such financing quantum helps meet big-ticket funding needs without much worry. For instance, higher education of your child or wedding arrangements can be a costly affair in today’s time, which a personal loan provides for suitably.
Flexible and long tenures
Repayment of personal advances is possible over a long tenure, extending up to 5 years. Applicants also have the flexibility to choose the loan tenure flexibly as per their suitability. When selecting a repayment tenure, it is wise to use an EMI calculator that helps find the best loan affordability based on the term selected.
Repayment in easy EMIs
Further, you can choose to pay your EMIs in up to 60 months, breaking down the loan liability in smaller values for easy and affordable repayment. When checking EMI affordability, make sure to consider the loan amount and tenure’s impact on your total interest payable as well to optimise EMI selection. Remember, repaying at higher EMIs can sometimes be beneficial than choosing lower EMIs, which in turn extend the tenure, and thus the interest payable, costing you dearly.
As unsecured advances, personal loans do not require borrowers to provide any asset as collateral to the lender. All you need to do is meet all the eligibility and documentation requirements laid down by your selected lending institution.
Competitive rates of interest
Financial institutions also extend personal loans at competitive rates of interest, largely to counter offers from other lenders and to improve borrower affordability. When availing a personal loan, make sure to compare offers from lending institutions to find the lowest rate levy.
Simple eligibility and documentation
The ease of loan availability has also been made possible with simplified personal loan eligibility requirements. The necessary criteria often relate to one’s age, income, credit score, and residential status. To prove such eligibility, one needs to provide the necessary personal loan documents as well when applying.
Must Read: Planning to Take a Loan Against Property? Consider These Features
Benefits of Personal Loans to Look Out For
Improved accessibility with easy online application
Unlike earlier, a personal loan borrowing aspirant can apply for a personal loan sitting at the comfort of their homes without needing to step out. Such digital facilities have ensured better accessibility of these advances to people across the country, breaching the boundaries of time and location.
Financing without restrictions to end-use
As a personal financing option, these advances come with zero restrictions to end-use as well. It means that the borrower can utilise the loan as per his/her liking or requirement. Be it personal or professional spending needs, these personal advances are available for all purposes.
Fast processing with swift paperwork
Documentation for personal loan has been reduced to minimal. It thus ensures swift paperwork, resulting in minimal steps involved and fast processing of the advance. As a result, the loans are approved quickly, usually within a few minutes.
Suitable for emergency funding needs
The fast approval and disbursal of personal loans also make them suitable for financing emergency needs for spending. Medical emergency is one such instance requiring financing at short notice that a personal advance is suitable to meet. Further, when travelling overseas, and in need of a personal advance during financial fix. One can apply with their existing lender for quick approval and disbursal. Similarly, emergency business financing is another aspect requiring quick funding suitably fulfilled with these advances.
Today, lenders also allow easy management of a personal loan through online customer portal login. These portals support a range of services, right from tracking your EMI due dates. And checking loan outstanding, to making repayments, and more. As they come with 24×7 service online, a borrower can access such a lender portal at any time and from anywhere.