Why Is A Personal Loan Suitable To Cover Financial Needs?

By Author: Shreya Eppili
Total Articles: 28
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However prepared you are in life for emergencies, there might be times when you find yourself in a tight spot. A financial crisis can occur anytime, leaving you worried and troubled. You may have saved money. However, in certain situations, you might need some extra funds. This is when it could be a good choice to apply for a Personal Loan.
Such a Loan offers an easy way to fund your needs without worrying about your budget. Here are the advantages of Personal Loans.
Overview of a Personal Loan
A Personal Loan is unsecured. Various banks offer it based on criteria like income level, employment history, repayment capacity, profession, and credit history. Personal Loans are also known as Consumer Loans. Such a Loan is a multi-purpose Loan, which you can use to meet your immediate legitimate financial needs.
Like any other Loan, you need to repay it according to the agreed-upon terms with your preferred bank using easy equated monthly statements or EMIs.
Benefits of a Personal Loan
A Personal Loan is often considered the best way to get quick funds to cover your ...
... immediate monetary needs. The various perks of such a Loan include:
Does not need collateral or security
A Personal Loan is an unsecured Loan. Therefore, you do not need to provide any guarantee or security against the sum you wish to borrow. This characteristic is usually considered one of the most significant features of a Personal Loan. Hence, you don’t have to risk losing an asset if you default on repayment of the Loan.
Flexibility of tenure
Another perk of a Personal Loan is selecting the Loan tenure depending on your repayment capacity. Opting for a longer tenure results in a lower EMI, and vice versa.  You could utilise a Personal Loan EMI Calculator to ascertain the Loan duration based on the maximum EMI you can afford to repay each month.
No restrictions on fund usage
When opting for an Auto or Home Loan, you need to use the borrowed funds for a particular purpose. However, when you select a Personal Loan, you could use the funds for any purpose.
Easy application
Today, several banks may let you apply for your Personal Loan online. This online application process makes it easier to get the Loan.
Benefit of fixed interest rates
Typically, most banks in India offer Personal Loans with fixed interest rates. Consequently, the interest stays the same throughout the tenure of your Loan, and you do not have to worry about changing interest due to the fluctuating market conditions.
Advantage of quick disbursal
If you meet your preferred bank's eligibility criteria and have a good credit score, your bank may approve the Personal Loan within two to three days.
Conclusion
Since a Personal Loan offers multiple advantages, applying for it can be an excellent way to raise money for immediate financial needs.