The famous saying that life is unpredictable is not an exaggeration. Sometimes life throws curveballs at you when you least expect them. While it is good to plan for such contingencies, it may not always be possible. You can often have other pressing needs, too, and your financial conditions may not permit you to cover unplanned expenses. Moreover, incidental expenses do not just crop up in an emergency. Sometimes, you may want to buy a commodity or travel the world at short notice but can lack the funds. All of these eventualities and more can be covered with a personal loan.
A personal loan is an excellent form of credit that can help you cater to various financial needs. Let’s find out more about personal loans and the advantages of online loans that you can enjoy when you opt for one.
What is a personal loan?
A personal loan is an unsecured loan where you can borrow funds to cover your various needs. A personal loan is not linked to a specific type of expense. A home loan is used to purchase a home, a car loan for a car, and an education loan for education expenses; a personal loan is used for your personal needs. These can range from travel, buying an electronic gadget, covering your small business expenses, renovating your home, or debt consolidation. You can choose where and how you get to spend your money, and the lender has no say in the matter. Moreover, personal loans are unsecured loans so you can apply for them without collateral.
What are some advantages of online loans like personal loans?
1.They are quick and seamless:
Getting a personal loan helps you save crucial time and effort. You can apply online for a personal loan from the comfort of your home and have the funds in your bank account within a few hours to a few days. Personal loans are instant loans in today’s time and age. You have to fill up the loan application and submit your Know Your Customer (KYC) information like identity proofs, address proofs, and other similar documents. The lender verifies these and checks your credit history and score. If the loan provider approves your application, the money is deposited into your bank account. The entire process is quick and seamless. This means there is no need to go back and forth multiple times. Lenders offer quick services that let you focus on your life and avail of the funds with ease. The hassles of waiting in queues or running after people for money are eliminated. In fact, your physical presence is not required at all. This is particularly helpful when you are in a financial emergency and need immediate funds.
2. They do not require collateral:
Collateral refers to a financial asset that you offer as security to a lender when applying for a loan. This security assures the lender. In the event of non-repayment of the loan, the lender can sell off the collateral to retrieve funds. Collateral is used in several types of loans to cover the risk involved. However, one of the more brilliant advantages of online loans like personal loans is that they require no collateral.
You can apply online for a personal loan without collateral and still get a relatively high amount up to Rs. 30 lakh. Personal loans are designed to be accessible for most people. This is why they remove the hassles of collaterals. It can be hard to offer a financial asset as security to the lender. This is particularly true for younger people. When you are young, you may lack enough assets. However, this does not have to come in the way of your financial needs. A personal loan helps you tackle financial needs with a high loan amount and low collateral.
3.They can be used for several purposes:
A personal loan offers amounts of up to Rs. 30 lakh so that they can be suitable for several financial requirements. For instance, you can use them to buy the latest phone and use them to renovate your home. Since they offer instant funds, you can also use them for medical emergencies. Personal loans cover diverse needs thanks to their flexible and user-friendly features. Moreover, when you apply for a personal loan, the lender does not ask you about the purpose of your requirement. So, you can also split the money into multiple needs. For instance, a part of it can be used to buy a new bike, and the remaining portion can cover your next vacation. The choice lies in your hands entirely with no interference by the loan provider.
4. They can be easily availed:
Personal loans require minimal documentation. They are approved based on your credit score and credit history alone. If you have a good credit score, you can get a high loan amount without any difficulties. Compared to business loans that check your business’s profit and loss statements, balance sheets, future prospects, or a home loan that may look at the property site and other vital properties details, getting a personal loan is much more simplified. As a result, you can apply online for a personal loan and have the loan approved without fearing rejection.
5. They offer competitive interest rates and long settlement tenures:
Personal loans can offer attractive interest rates depending on your credit history and loan amount. You have nothing to worry about if you have a steady income, good financial standing, and a high credit score. You can get a low-interest rate, making it simple to accommodate the loan in your budget. Moreover, personal loans like the one from Poonawalla Fincorp have no prepayment or foreclosure charges. So the associated costs of the loan are further reduced. Poonawalla Fincorp also offers low-interest rates starting from as low as 9.99%. The settlement tenures are flexible and can range up to 60 months, giving you ample time to repay your debt. All in all, this can be an effective financing method in emergencies and at other times to fulfil your dreams without bearing the brunt of high debt.
To sum it up
Given the several advantages of online loans like personal loans, it is only fitting to say that a personal loan is one of the best options in the market for instant funds. You can use a personal loan anytime you want, no matter the need. With online loans, it is also easier to compare different loan offers and go for the one that presents the most value to you. Additionally, you can use an EMI calculator, another online advantage that lets you make smart loan decisions. All of this can be done from the comfort of your home or office.
Poonawalla Fincorp offers excellent personal loan with competitive interest rates and extended repayment terms. You can apply for a personal loan with Poonawalla Fincorp if you require immediate funds for any financial need.
How magical was the day when you discovered your career path? After a lot of research, putting in so much hard work, late nights, your heart and soul, you have become what you are today.