Today, an increasing number of people are availing personal loans for their financial requirements. Whether for individual or business needs, an unsecured personal loan can be utilised to meet different monetary requisites.
Various lenders have also made it easier to access this loan by reducing the approval time, providing more features, and minimizing the documentation procedure.
There are 5 other reasons why you should avail personal loans.
01. You can get these loans within 24 hours
It takes only 24 hours for leading financial organisations to disburse the loan amount. Hence, these are one of the most viable funding solutions at times of medical or other emergencies.
Many prefer swiping their credit cards for immediate cash; however, credit cards come with higher interest rates in case the bill remains unpaid after the due dates. Furthermore, utilising more than 30-50% of your limit will lower the credit score.
So, these unsecured loans are more affordable alternatives to credit cards.
02. You can get up to Rs. 25 Lakh
A personal loan can provide you with funding of up to Rs. 25 Lakh. You can use this amount for a multitude of purposes.
People prefer using unsecured personal loans for the following reasons other than medical emergencies:
- Higher education
An MBA degree from top institutes like IIM and XLRI will obviously come with high tuition fees along with other charges. These high tuition fees are not only exclusive to MBA or engineering fields, but also to other higher education degrees from renowned Indian or foreign institutes.
So, apply for a personal loan and take advantage of its competitive interest rates to fund your higher education.
Those planning to host a grand wedding soon can apply for these unsecured loans to cover all expenditures smoothly. As these come in higher amounts, you can cater to various needs including pre-wedding shoots, booking the venue, shopping (outfits, jewellery, gifts, wedding essentials, etc.), wedding caterer, and more.
- Exotic vacation
If you are planning for a holiday in India or overseas, finance your trip conveniently with personal loans. Again, utilise the amount for booking transportation and accommodations, shopping, food, and other miscellaneous expenses.
- Debt consolidation
At times, you may come under debts that you find hard to pay off. That is when you can avail a personal loan to consolidate all debts and avoid paying the higher interest rates. Personal loans come with attractive interest rates that make your EMIs affordable. If you are pondering on how to calculate personal loan EMI, use a personal loan EMI calculator online to find your EMIs depending on your loan principal, interests, etc.
03. The eligibility criterions are easy to fulfil
The eligibility criteria for a personal loan are simple but different for salaried and self-employed individuals.
- If you are employed, you have to be between 23 and 58 years of age and employed with an MNC or public/private enterprise.
- You have to be between the ages of 22 and 55 years and have a business vintage of at least 3 years if you are self-employed.
04. You have to provide only a few documents
KYC documents, address proof, bank account statements, salary slips (salaried), proof of business (self-employed) are the only documents required for a personal loan. Thus, the personal loan approval process also becomes considerably faster.
Note: Self-employed individuals may have to provide other documents like income tax returns and audited business turnovers.
05. No collateral advances
As already mentioned, personal loans are unsecured. Hence, you don’t have to provide any asset as collateral or a guarantor for availing these loans.
An unsecured personal loan is, thus, a viable solution for financing various reasons. Make the best of it with calculated EMIs and a well-managed personal finance plan.