A personal loan is an unsecured loan that is given to a consumer to meet their various personal needs such as home renovation, marriage, home appliances, buying a vehicle, etc. It is offered exclusively after verifying the paying capacity as per the income source and their credit history. A nominal processing fee will be charged and the amount will be credited to the account of the individual as per their paying capacity. In fact the loan repayment is done through fixed installments which also include interest and for a fixed time period. The icing on the cake is that personal loans are a smart option these days as there is no need to go through a lot of formalities and tedious paperwork. Most of the financial institutions and banks today offer personal loans and the rate of interest is also quite reasonable.
Discover the Various Benefits
• Easily Available – Getting a personal loan is not a challenging affair anymore. It is offered by almost all financial institutions and banks at a reasonable rate of interest. It is convenient and easy to avail as compared to other loans
• No middleman or agent involved- There will be no need to take the help of any agent or middleman for availing a personal loan. This will avoid unnecessary expenditure and delay. One can directly approach the financial institution or bank for this purpose
• Unsecured Loan- This is actually an unsecured loan. No collateral security is required to avail the loan here. In fact, all that is needed is the ability to withdraw funds.
• Less processing time- Since it is accessible without any guarantee or security, the processing time required for availing it is naturally less as compared to other loans
• Loan for all purposes- In this form of loan it is not mandatory for a person to specify for what purpose he will use the money.
• Minimal Paperwork- No asset verification or other types of certificates and proofs will be required for availing the loan, which involves substantial paperwork as one’s property is not mortgaged
• Offers and schemes- Various financial institutions and banks keep announcing offers and special schemes on personal loans especially for professionals like architects, doctors, chartered accountants and so on.
• Amount and Tenure- These loans are generally provided from Rs 15000 to Rs 20 Lakhs varying from one bank to another. Repayment can be done through EMI
The bottom line is that it is always better to opt for a personal loan rather than borrowing money from a credit card as the rate of interest is comparatively lower. So take full advantage of it.