Personal loans are a good way to monetize your financial needs. A personal loan is a form of an unsecured loan which can be availed without worrying about the collateral. Many people often choose a personal loan over the other loan options, as funds from a personal loan can be used according to the convenience of the applicant. The lender does not monitor the usage of personal loan funds, which thus makes it easier for the applicant to allocate the money according to his fiscal needs.
Different lenders offer different interest rates, which is why you will come across some lenders who might charge you a high rate of interest and vice versa. Thus, it is important to check personal loan interest rates before applying.
When you apply fora personal loan, there are various factors that you can benefit from. These benefits thus making the personal loan a much preferable option as compared to other loans.
Benefits of personal loans:
When it comes to applying for a personal loan, you have two options – you can either apply for the loan online or visit the financial institution to complete the loan process. Applying for a personal loan online is a convenient option. When you apply for a loan online, you can save time as well as the loan process will be much faster. It takes a maximum of 72hrs for a personal loan application to get approved. The process online can also help you check on the different schemes offered by the lender and compare it to other financial institutions. You can also read the reviews and decide whether the lender meets your personal loan requirements.
Personal loan EMI calculator:
The interest that you pay on your personal loan depends upon two factors: the loan amount that you borrow and the tenor that you are borrowing it for. At times, you might not know the exact interest amount that you are required to pay for your personal loan. During such scenarios, a personal loan EMI calculator can help you. To calculate the amount that you are required to pay as an interest, you can use a personal loan EMI calculator. While using the EMI calculator, it is important that you calculate the EMI on the lender’s website that you are opting for.
You can take debt consolidation in order to refinance all your loans. In debt consolidation, you can avail a personal loan to repay your debts and despite paying several EMIs, you only must pay one single EMI for all your loans. As personal loan lenders don’t monitor how the funds are used, it is easy to use personal loan funds to consolidate all your debts. By availing a debt consolidation, you can reduce your financial stress.
In a flex loan, the applicant is free to carry out transactions from his personal loan account. To avail the facility of the flex loan, you need to tie-up your current account to the personal loan account. The amount of installment will be deducted from your current account every month. But, if any additional amount is deposited in the current account, then this amount will benefit you in reducing the principal amount, as the lender won’t charge you extra charges on the carried transaction.
Availing a personal loan can not only help you monetize your various financial needs but in addition, you can also benefit with the above features.
Loans have gradually become an important aspect of our lives. A few decades ago, an individual who would want to borrow a personal loan would have to go through a complicated procedure to avail it. However, with a host of financial companies which came into existence about a decade ago, the concept of borrowing a personal loan has been revolutionized. The financial institutions have explored the possibilities and have come up with much more flexible loans to help cater to the needs of people.
What are Personal Loans?
Personal loans are an unsecured form of loans which involve quick sanctioning and easy pay-out. However, the most intriguing part about a personal loan is that collateral is not required. Personal loans often include borrowing of an amount to fulfill the needs pertaining to medical, education, gadgets, travel, vehicles, etc. However, you are free to utilize a personal loan the way you want.
What must you consider while borrowing a personal loan?
When talking about a personal loan, it is essential that you take three factors into consideration – personal loan amount, tenor and the rate of interest. These three aspects go hand in hand. The amount that you borrow, the tenor that you choose and the rate of interest that you are provided with determines the EMI that you will pay.
A personal loan is a great way to overcome shortcomings. It is a boon if you are falling short of the required amount to fulfill your need. There are several ways in which you can utilize a personal loan to its fullest. Here are a few requirements in which you can optimally use personal loans:
Financing home renovation: There are many people who want to remodel their home. However, lack of funds is the major obstacle that comes their way. There might be a special occasion were renovating a house is pretty much in culture, under such a scenario you can opt for a personal loan for house renovation. Apart from that even if you wish to add details, put a new roof, or build an extra room; a personal loan will come in handy.
Payment for a wedding ceremony: Almost every individual dreams of a perfect wedding. Especially women, who plan and think about it a lot. Not just the kids but even their parents are keen on the occasion. Most of the parents start saving from the early days. However, such is the cost of marriage in today’s time that savings cannot fulfill the requirements. Thus, borrowing a personal loan does a lot of good under this scenario.
Credit score: A personal loan helps in improving a credit score tremendously. There are various bodies, most prominently, CIBIL which calculates a credit score. A good credit score will help you avail a tremendous amount of benefits whereas a bad credit score can hurt your chances of availing any form of a loan. In a personal loan, when you repay your loan on time, your financial credibility with the lender improves significantly.
Paying debts endured on cards: A personal loan is usually borrowed to pay off debts on credit and debit cards. A personal loan might require you to pay a high rate of interest as the nature of the loan is unsecured. However, it is much less than the one you are being charged on your credit/debit cards. Borrowing of a personal loan to clear debts is a very good idea.
These are a few options regarding how you can make the optimal use of a personal loan. Apart from these options, you can even use it for investment purpose to make a considerable profit.