Irrespective of how efficiently you plan your finances, sometimes, financial needs occur all of a sudden and mostly when you least expect it. In such cases, you either have to resort to borrowing from friends, taking a loan or spending from your credit card. Each option has its advantages and drawback. Borrowing from friends or relatives is uncertain might strain relationships in the future. Hence, opting for a personal loan or borrowing against your credit card are two feasible options. Even from these, personal loans fair better against credit card borrowing by a wide margin. Hence, if you require funds to fulfil a personal expense, consolidate debt, ease liquidity crunch, pay for a medical emergency or any other requirement, a personal loan is your best financial recourse.
Read on to know Personal Loan meaning and Personal Loan definition.
A Personal Loan is an unsecured loan that can help you meet your current financial needs. The loan does not require you to pledge any security or collateral and is available with minimum documentation. The lump sum from the personal loan can be used to fulfil expenses, such as home renovations, marriage expenses, medical emergencies, funeral costs, etc. You can also use a Personal Loan to consolidate different debts or ease a liquidity crunch.
Unlike a credit card, a Personal Loan gives you a lump sum amount to use at once. You pay back the amount plus interest in pre-agreed monthly instalments over the loan tenure. Most people prefer personal loans as an alternative to credit cards because often Personal Loans have lower interest rates than credit cards.
Also, you can use a Personal Loan amount to fulfil nearly any kind of expense that is personal in nature, such as some of your goals, needs, emergencies, etc. Moreover, owing to the ease of online Personal Loans and the increasing competition, availing of a Personal Loan is cheaper and more accessible than ever before. In contrast to credit cards, Personal Loans are available at a fixed rate of interest for any amount you want to borrow. However, credit cards are revolving debts, where you can borrow the balance of the funds after spending per the credit card limit.
Poonawalla Fincorp does not levy any restriction on the usage of funds from the personal loan. You can use the lump sum from your personal loan as you deem fit. Here are six cases where you could use a personal loan from Poonawalla Fincorp:
1. Buy new electronic appliances: Money from personal loan can be used for buying new electronic equipment, such as refrigerator, washing machine, TV, AC, etc. A growing family or growing aspirations demand that appliances in the house are up-to-date and cater to the needs of everyone.
2. Upgrade to the latest smartphone: As consumers become more upwardly mobile, they prefer to have the latest smartphones in their hand. Also, smartphones have become like mini-computers / mini-laptops and a large chunk of office work is done on a good smartphone. Hence, consumers can avail of a personal loan to fulfil this need / desire.
3. Sponsor wedding expenses: In India, weddings are one of the heftiest financial investments. With each year, weddings are getting costlier. You can use a personal loan to finance your or your children’s wedding expenses and ensure the functions are done well.
4. Meet medical emergencies: Medical emergencies like an accident, critical ailment, serious injury, etc., often come unannounced. In such situations, financial support from a personal loan is of utmost benefit. With a personal loan, you can get the best possible treatment without worrying about finances. The lump sum from the loan can be used to pay your treatment expenses.
5. Fulfil higher education expenses: Education, in India or abroad, has become highly expensive. As a parent, you can take a personal loan to cover the higher education costs of your children.
6. Accomplish travel goals: Most often, people wait for sufficient funds to fulfil their dream of travel. However, life is uncertain and too short to be spent waiting for the right time. If travelling is your passion, you can use a personal loan to accomplish the goal.
7. Purchase home appliances: Home appliances like a fridge, air conditioner, washing machine, television, etc., is important but also significantly costly. You might have to save for several months and cut down other necessary expenditures to buy these home appliances. However, if you do not have funds on hand, a personal loan can provide you with much-needed financial support. You can use the funds from the loan to buy household appliances or electronic equipment immediately.
Apart from these reasons, you can use a personal loan to cover funeral costs, moving expenses, pay credit card dues, buy a vehicle or an expensive gadget, etc. There is no restriction on the usage of personal loan money, so you have complete freedom to use the lump sum as you deem fit. You could even use the money for two or more two purposes, as per your financial requirement.
Here are some important things that you need to keep in mind about Personal Loan before applying for it:
Here is the full disclosure of all interest rates and fees related to Poonawalla Fincorp personal loan
Starting at 9.99% per annum. The exact interest rate depends on your loan eligibility, credit score, etc.
Zero pre-payment charges on foreclosing personal loan before the fixed tenure. However, the foreclosure should be from owned funds.
|Loan processing charges||
Between 0% and 2% per profile plus taxes.
|Late payment penalty||
Rs. 500 bouncing charge/bounce plus taxes
2% penalty on the unpaid pending interest amount, if any.
*T&C apply. These numbers are subject to change depending on existing offers
For more details on Interest Rate and charges, please Click Here.
Eligibility criteria for personal loans from Poonawalla Fincorp are
Minimum 22 years at the time of loan application and maximum 58 years at the time of loan maturity.
Minimum work experience of one year with at least two months of stability with the current employer
|Income||Minimum net salary of Rs. 20,000 per month|
Applicant should be full time employed with a company, private or public limited corporation or LLP.
|Citizenship||Available only for Indian citizenship holders|
Here are some of the prime features and advantages of taking a personal loan from Poonawalla Fincorp are:
Here is the list of documents needed to present when availing of a personal loan from Poonawalla Fincorp:
|KYC documents|| PAN card
|Address proof||Electricity bill or rent agreement or Indian passport|
|Income proof||Latest monthly salary slip from the current employer|
|Bank account statement||Original bank statement for the latest three months in PDF format.|
Everything, right from the personal loan application, approval and distribution, at Poonawalla Fincorp are simple, transparent and fast.
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.