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13 Benefits That You Should Know About Personal Loan

posted on 2020-06-17 10:01:37 by Admin

13 Benefits That You Should Know About Personal Loan

In the market, there are various financial products available to meet the liquidity needs in emergency situations. Personal loans are best to fulfill the short and long term needs. So, before applying for the loan, let's check out its important features and benefits.

What is a personal loan?

A personal loan can be defined as the money taken in the advance from the bank by a person/borrower to support their personal expenses like education, wedding, investment, vacation, etc.

The borrower has no restriction to use the money, he/she can use it anyway they want. A person gets an ample amount of loans to fulfil his/her personal /domestic requirements. A personal loan is offered by all the banks, we guide you to grab the best possible deal in your favour.

13 Personal Loan Benefits

For you, we have compiled the top benefits of the personal loan.

#1. Low Risk Factor

It is easy to apply for personal loan and repay, you can choose the best plans according to your personal requirements across the top banks and NBFCs.

#2. Easy Repayment

It can be repaid easily in a hassle-free manner in adaptable regularly scheduled repayments. The monthly instalments are made according to the repayment time frame, depending on the loan amount.

Check: 5 Ways to Plan Personal Loan EMI Repayment

#3. Minimal Eligibility Criteria

It can be availed by all the service personnel of the private as well as the government sector and all the government pensioners.

For service personnel, to apply for the loan, the  minimum continuous service must be 6 months to 1 year.

#4. Credit Score

It's advisable that you have a Credit score 750 or above, which makes it easier for you to avail the loan. This score tells the creditworthiness of the borrower/ loan taking individual, it tells you whether you are eligible to take the loan or not, this score is given by the agency like CIBIL, which is authorized by the government, these are computerized platforms to calculate the credit rating of the borrower. In case of low credit Score, you can always increase it tomore than 750.

#5. Easy Management of EMI

You can calculate the EMI amount on our online EMI calculator. The payment is made every month according to your own credit application with LoanAdda you can apply for a personal loan & enjoy multiple benefits. Such as online application help, Instant Personal Loan approval, multiple personal loans offers etc and much more.

#6. Easy Conventions

Before providing the loan, the bank takes the assurance from the organization where the individual is based. Maximum amount given as the personal loan varies from bank to bank like in PUNJAB NATIONAL BANK(PNB) the loan amount provided is roughly 20-30 times of the individual's monthly salary, some other banks provide it up to 60%.

#7. Fast and Easy Service

Personal Loan service which gets approved very quickly. The disbursal of the amount takes less than 24 hour.

#8. Less Paperwork

Adapting with the digital notion, we have made it easy for you, we provide you easy personal loan service with minimal paperwork. Only essential documents required for instant personal financing, because these documents will be required for the recovery of the loan in case the borrower defaults on repayment.

Check: List of Personal Loan Documents

#9. No Collateral

You don't have to put up security either unlike a mortgage or home equity loans, This is particularly appealing to buyers who have nothing of significant worth to use as security.

#10. Versatile Loan

Unlike other loans, a personal loan has no bondages on the utilization of the money, the borrower can use it in any way according to his/her requirements. Now, you know that you can use it in any way you want, that doesn't mean that you should, just prioritize stuff and investsmartly.

#11. Low Interest Rate and Easy Debt Amalgamation

The interest rate on personal financing is quite decent as compared to other loans. The personal loan interest rate ranges from 8 to 36 percent.

One of the most well-known employments of individual advances is to pay off higher-interest credit card debt. You can also lower the interest rate on the installments by paying 2-3 installments at one go beforehand.

You get enough time to pay the loan amount at your ease in flexible installment pattern, which is made according to reimbursement period

#12. Quick Loan Approval

Loan approval is quick, it gets approved within 24 hrs, and then you are good to go, invest it in any way you want.

#13. Multiple Loan Providers

A variety of lenders offer personal loan, besides the traditional banks and the credit unions (created and operated by members ant the profit is shared with the owners ), you can avail the loan the personal loan at online banks

How to avail and enjoy your personal financing?

Get your financing done with the minimal effort

First and the foremost thing to do is to figure out if you really need the loan.

  • Think if it is necessary - Give a deep thought, be sure that you take the loan only if you know that you will pay the loan installments on time so that you don’t get stuck in the continuous cycle of repayments.
  • Check if there is any existing Due - Check if there is an existing loan or any other due that you are currently paying because this will calculate the loan amount that you will be able to take You can use the online calculator.
  • Your Monthly Income - Income plays a very big role when it comes to getting your personal financing done Your income decides the loan amount you can take and the amount of the emis that you will have to pay.
  • Check the Interest Rate - Check the interest rate offered by the bank and calculate the EMI’s that you will have to pay in the flexible monthly installments You can use the online EMI calculator for the same.
  • Application Form - All the customers can take the application form from the bank or you can directly go to the branch and get the formalities done.
  • Documents - Before applying check that you have all the necessary documents required and your passport-sized photographs (at least two) so that it becomes easy for you to get done with the process as soon as possible

Note: If you are applying for the loan online, make sure that you have a scanned copy of all your documents as well as your signatures so that you canavail the service smoothly.

Now that you have all the documents, collect them and attach it with the application form, and head to the bank to start the process

NOTE: Bank takes some process charges, so always keep some cash or a cheque handy, so that there is no hassle.

  • Bank Verification- Now the bank will verify the documents, give you the loan sanctioned and will approve the based on your eligibility, now this will be followed by the signing of the agreement and the loan amount will then be disbursed within 24 hours.
  • Almost Done - And then the loan amount will be credited to your account.

NOTE: The time taken to disburse and credit the loan amount to your account varies from bank to bank So stay informed well in advance

This is all that you need to know. You are all set, Now you can get started without any worries.

To apply for personal loans, home loans, business loans, credit cards, visit Loanadda.com. Best assistance and guidance is just one call away.