personal loan popularity in India

15 Reasons Why Personal Loans Are Becoming So Popular in India

July 13, 2022 • 3978 views

Over the years, the popularity of Personal Loan has significantly increased. Several beneficial reasons for a Personal Loan have helped to gain popularity amongst individuals. Moreover, a Personal Loan is one of the best options to meet any financial emergencies. In this blog, you will understand some common reasons for a Personal Loan becoming so popular and also learn about the step-by-step online loan application process. Read on!

What is a Personal Loan?

A Personal Loan falls under the umbrella of unsecured loans that come with no restrictions on end use. You can opt for a Personal Loan to pay emergency medical bills or even utilise it for debt consolidation.

To repay these loans, you have to pay EMIs for a tenure of up to 60 months. However, depending on real-time events and the borrower’s payment diligence, this tenure is chosen so they do not feel a financial burden and end up defaulting on their credit repayment.

Top 15 Benefits of A Personal Loan

Here are the most talked-about advantages of a Personal Loan:

1. Convenience

You can submit an online Personal Loan application to several financial institutions. Additionally, the majority of loan apps and websites show you the maximum loan amount you qualify for depending on your monthly income when you apply for a loan online.

Furthermore, you have the option of uploading your documents online. Thus, the entire process has been digitised with minimal need for human interaction. 

2. Hassle-free Application, Approval and Disbursal

In the past, Personal Loans were too slow to get approved by lenders. One had to submit a lot of paperwork and wait for days, and even then, there was no guarantee that the loan application would be accepted and disbursed on time. However, since the advent of online lenders like Poonawalla Fincorp, applying for a Personal Loan and receiving takes place in a matter of a few hours or less.

3. Debt Consolidation

Due to the wide availability of many loan tools, many people are in debt. A Personal Loan in India can help you consolidate all your debts and improve your credit history. Additionally, the interest rate for Personal Loans is lower than that of many other loans. You can, therefore, replace all your high-interest loans using this financial solution.

4. No Restrictions on usage

The ability to use Personal Loans to fund any purpose is its key benefit. This is not the case with home loans and vehicle loans, which can only be utilised for a certain purpose. So, unlike a home loan, which can only be used to buy properties, and a car loan, which can only be used to purchase a car, a Personal Loan can be used to meet any financial need.

You can use a Personal Loan to pay for vacation expenses, house renovations, new furniture and appliances, wedding expenses, unexpected medical bills, education, buying a used car, etc.

5. Collateral-free

Personal Loans are readily available without any collateral, which is one of the main reasons more individuals choose them. Since Personal Loans are unsecured loans, you do not need to provide any security, collateral, or guarantors to get approval for a loan.

This is not the case with secured loans taken out for big purchases. Your capacity to repay the loan within the allotted time is the only criterion taken into account when approving a Personal Loan.

6. Flexible Tenure

The typical loan repayment period for instant loans is 12 to 60 months. You may choose the tenure that best suits your needs. However, you should be aware that the interest rates for Personal Loans with longer terms are significantly higher than those for loans with shorter terms.

Also Read: Difference Between Secured And Unsecured Personal Loan

7. Easy to meet Eligibility

Personal Loan eligibility requirements are simple and straightforward. You must satisfy the following requirements to be qualified for a Personal Loan from Poonawalla Fincorp:

  • The borrower should be at least 22 years old at the time of loan application and a maximum of 57 years old at the time of loan maturity.
  • The borrower must have Indian citizenship.
  • The borrower must have a full-time job at a public/private limited company or an LLP.
  • The borrower must have job experience of at least 1 year with at least 1 month of stable employment at the current job.
  • The borrower must have a monthly income of at least Rs. 30,000.

8. Minimal Documentation

You don't need to provide too many documents when applying for a Personal Loan. For Personal Loans, banks, financial institutions, and other lenders don't demand as much documentation as they do for home loans.

A Personal Loan is immensely popular as it requires little in terms of supporting documents. To apply for a Personal Loan, you only need to provide the basic documentation of your address, identity, and income.

9. Attractive Interest Rates

One of the very first things that borrowers look at when applying for a Personal Loan is the interest rate. Currently, both banks and non-banking financial institutions provide a Personal Loan with attractive interest rates.

It starts at 9.9% p.a., making it one of the most attractive in the lending sector. Apply at Poonawalla Fincorp to obtain an attractive Personal Loan interest rate in India.

10. Can be Availed Online

Non-Banking Financial Companies (NBFCs) like Poonawalla Fincorp provide an online Personal Loan at an attractive interest rate through a swift loan processing system that ensures quick approval and disbursals.

11. Supports Higher Education

Higher education paves the way to a successful career. Indians are well aware of this fact, and thus, they intend to take a Personal Loan to bridge the gap between tuition fees and savings. Therefore, irrespective of the institution you choose, if you are short of funds, you can avail of a Personal Loan to continue your studies.

12. Can be Used for Home Renovation

Home renovations can be expensive due to the rise in inflation. Depending on the specific segment, whether you are looking forward to upgrading the bathroom fixtures, extending your bedroom space or trying to remodel the kitchen, the costs can vary drastically. This is when you can rely on a Personal Loan to enhance your environment without risking financial stability.

13. Meets Emergency Medical Expenses

Medications and surgeries are unexpected costs that can occur anytime. As unfortunate events can usher in anyone’s life, a Personal Loan offers help tackle such situations with instant disbursals. During times of medical crisis, you can rely upon a reputed lender for an effective Personal Loan scheme. Also, ensure that an optimal tenure option is chosen to make the EMIs more manageable.

14. Supports Wedding Costs

It is not something unknown that Indian weddings frequently turn out to be extravagant and thus involve many expenses. To make this once-in-a-lifetime event truly special you can avail an affordable Personal Loan to meet all the essentials. This may include the venue booking price, purchasing new jewellery, catering costs, clothing, etc.

15. Pays for Vacation Expenditures

Many people no longer consider travelling to their dream destinations as a luxury. Quite justifiably, it is a deserved break from the mundane routine that one often seeks. Therefore, if you are falling a bit short of budget and want to upgrade a travel package, consider opting for a Personal Loan with attractive offers.

Also Read: The Ultimate Guide to Comparing Personal Loan Interest Rates

How to Apply for a Personal Loan Online?

Applying for a Personal Loan with Poonawalla Fincorp is very easy. You need to follow these three steps only:

  • Step 1: Click on the ‘Personal Loan’ tab.
  • Step 2: Fill out the loan application form.
  • Step 3: Attach the necessary documents.

After successful verification, the lender sends the money to your bank account.

To Conclude

There are plenty of reasons for a Personal Loan becoming so popular. The primary reason behind its popularity is that there are no end restrictions on the money you borrow. Also, with the increasing affordability and easy accessibility, more people now rely on Personal Loan deals instead of borrowing money from known ones. If you are searching for great loan offers with minimal documentation needs, get in touch with Poonawalla Fincorp.

Frequently Asked Questions

  • Is a Personal Loan a good option for consolidating existing debts?

Multiple debts lead to several EMIs, and often, some of them may involve floating interest rates. Therefore, managing the repayments can become troublesome. For this reason, you can rely on an affordable Personal Loan to square off the payments and assess a fixed monthly obligation, which seems more practical.

  • What are the primary purposes of a Personal Loan?

A Personal Loan does not come with a specific target audience. It can be used to meet emergencies, debt consolidation, and even a vast range of personal needs.

  • Is taking a Personal Loan good in India?

Yes, taking a Personal Loan good in India can be a deciding factor in India especially if you are getting an interest rate at a competitive rate. However, you should carefully pick the tenure option to avoid unnecessary interest burden in the long run.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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