A financial need or emergency can arise at any time. For example: it is your mother’s 50th birthday. You wish to surprise her on the birthday with an international family trip. A home repair requirement you have put off for months requires immediate resolution. Or it could be a loved one who needs to undergo immediate surgery due to an accident or disease. These financial situations need a significant sum of money. You may struggle to arrange such a large sum on an urgent basis.
Applying for a Personal Loan is a viable solution. It allows you to instantly borrow a fair amount based on your eligibility. You can make a Personal Loan application via internet/mobile banking within minutes. The bank will process your Loan application within a reasonable span of time. Once the bank approves your Loan request, they will directly disburse the Loan amount to your Bank Account. This means you have the necessary funds to manage your financial needs or emergencies on time.
This blog will take you through the benefits of a Personal Loan with practical examples. This will help you understand the true value of Personal Loan as a financial option.
Benefits of a Personal Loan:
- Collateral free Loan
A Personal Loan is unsecured. This means no collateral required to get the Loan. This makes Personal Loans a feasible financial facility for various kinds of borrowers.
- Usage flexibility
A Personal Loan is a multi-purpose Loan option. Meaning you can use the Loan amount to meet a wide range of financial needs. So, you can use the Loan amount to finance your mother’s birthday trip, pay for home repair, or both.
- Significant Loan amounts
Go ahead with a Personal Loan application to borrow significant money. The minimum and maximum Loan amounts vary for each bank. The average Loan range is ₹ 50,000 to ₹ 30-40 Lakhs.
Furthermore, a bank provide a fair Loan amount based on your eligibility. The eligibility depends on the income, debt ratio, credit score, and tenure.
- Competitive interest rates
You can avail a Personal Loan at a competitive interest rate. The rate varies by bank and financial institution. Compare all bank offers and apply at a bank with a low-interest Personal Loans offer. This will make a difference to your Loan repayment.
Banks consider your job, income, debt-to-income ratio, credit score, and Loan tenure to set a fair interest rate. A strong financial profile can help you fetch a competitive interest rate for the Loan. It also helps draw pre-approved Credit Card and Personal Loan offers.
- Feasible repayment tenure
Most banks allow you to get a Personal Loan for 1 to 5 years. With some banks, it may be 7 years. You choose the tenure of the Personal Loan. Hence, make a mindful decision.
Understanding the true value of Personal Loan:
The following examples illustrate how helpful is a Personal Loan:
- Medical emergency
Suppose your brother meets with a tragic road accident. Bystanders rush him to the hospital. On the examination, the doctor recommends brain surgery to ensure survival. The surgery costs a few lakhs. You find yourself in a fix as you must arrange the amount in a few hours.
Opting for a Personal Loan application can be helpful here. You can apply for a Loan from the hospital via internet/ mobile banking. The bank will take up the Loan request as a priority. Once the bank approves the Loan, they will immediately disburse the Loan amount to your Bank Account. The on-time financing facilitates scheduled surgery. This could save his life.
- Major life event
Assume your daughter is all set to marry. As a parent, you would want to curate your daughter’s dream wedding. You will need a large sum of money to make this possible. Low interest Personal Loans may help fulfil your daughter’s dream. You can borrow a lump sum amount at a competitive interest rate based on your eligibility. Apply right away!
- Debt consolidation
You have multiple ongoing Credit Card and Loan payments. Your total interest liability is increasing each month. You can find your way out of this interest trap by opting for debt consolidation.
Personal Loans have proven to be helpful for debt consolidation. As mentioned, you can get the Loan at a competitive interest rate for your choice tenure. This allows you to repay the Loan without feeling burdened.
Wrapping it up
Personal Loan is a simple financing option. It helps manage financial requirements and emergencies. It is collateral-free and multi-purpose. You can make an online Personal Loan application in a few clicks. The bank will process your Loan application at the earliest. On approval, the bank will deposit the Loan amount to your Bank Account in no time.
