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What is Personal Loan? Things You Should Know
Financial needs can occur anytime and mostly when you least expect it. Opting for a Personal Loan is a feasible option during emergencies. Whether you require funds to fulfil a personal expense, consolidate debt, host a wedding, pay for a medical emergency, go on a vacation, or any other requirement, a Personal Loan is an ideal financial resource. Read on to learn what is a Personal Loan’s uses, features, and benefits.
A Personal Loan is an unsecured loan that can help you meet numerous financial needs. This is an unsecured loan, meaning it does not require you to pledge any security or collateral and is available with minimum documentation. You can avail of this loan with a flexible repayment tenure and pay through manageable EMIs. The funds from a Personal Loan can be used to fulfil several personal expenses.
Most people prefer Personal Loans as an alternative to credit cards as it is offered at lower interest rates and better repayment terms.
A Personal Loan comes with no end-use restrictions; you can secure this loan for the following purposes:
You can avail of a Personal Loan to buy new home appliances, such as refrigerators, washing machines, TVs, ACs, etc. This helps to upgrade your living standards without straining your budget.
Smartphones have become a part and parcel of our lives, but buying the latest high-tech smartphone is often costly. A Personal Loan makes it easier to get your desired smartphone without worrying about its high costs.
Hosting a grand wedding requires large funds to cover various expenses, which can be easier with a Personal Loan. You can book your dream destination and get the best caterers, photographers, decorators, etc.
Medical emergencies like an accident, critical ailment, or serious injury, often happen unannounced. In such situations, a Personal Loan helps you get the best treatment without any financial stress.
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.
People often 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 you are a travel enthusiast, you can simply apply for a Personal Loan to accomplish your travelling goals.
A Personal Loan can also be utilised to consolidate multiple loans/debts into one and pay it off. This helps in reducing your debt burden at lower interest rates.
Also Read: Why is a Personal Loan One of the Best Short-Term Loans?
Here are some important things that you must keep in mind before applying for a Personal Loan:
Before you apply for a Personal Loan, it is essential to know how much money you need. Evaluate your financial situation and how much you can afford to borrow. Borrow only what is needed; excessive borrowing can increase the EMIs and may cause unnecessary financial burden.
There is a certain limit on the maximum and minimum funding you can avail from a Personal Loan. This limit varies depending on several factors like income level, profession, credit score, etc. It is advisable to always check for the maximum and minimum Personal Loan funding available.
Each lender levies a different interest rate on Personal Loans. The average interest rate for Personal Loans is between 10-30% per annum. Several lending institutions like Poonawalla Fincorp offer Personal Loans at competitive interest rates starting at 9.99%*p.a.
Each lender charges a different processing fee for administration purposes. Comparing the fees across lenders is wise. It is also advisable to apply for a Personal Loan from a lender with the lowest processing fee.
Lending institutions like Poonawalla Fincorp allow you to foreclose or prepay your Personal Loan without any extra charges if paid from your own sources. This helps in reducing the debt burden and interest burden.
When applying for a Personal Loan, choose to borrow from a trustworthy lender. Assess the credibility and reliability of the loan provider before taking a loan. Choosing a credible lender will ensure you are secure against any legal or financial hassles that may arise during the loan term.
Today, Personal Loans are available with just a click and from the ease and comfort of your home. Hence, when assessing a Personal Loan lender, check if they offer a contactless and simple online application, approval, and disbursal loan process.
To avail of a Personal Loan, you need to submit several documents. Seek a lender that asks for a minimal hassle-free documentation process rather than a complicated one.
Assessing the approval time and disbursal of the Personal Loan is critical. Choose a lender with a quick and easy loan approval and disbursement process so you can access the funds as soon as possible.
The loan tenure has a significant impact on your monthly instalments. The longer the loan term, the lower would be the amount of the monthly instalments. Alternatively, the shorter the Personal Loan tenure, the higher will be the monthly instalments. Before applying for a Personal Loan, check the tenure specifications of the Personal Loan, and preferably, choose a loan term that suits your financial situation.
Also Read: Should You Consider a Personal Loan for Business Use?
Some of the prime features and advantages of taking a Personal Loan from Poonawalla Fincorp are:
The following are some tips that can help you get approved for a Personal Loan:
A Personal Loan is a helpful financial tool offering funds for diverse needs, such as hosting a wedding, covering medical expenses, sponsoring higher studies, funding trips, etc. Various lenders like Poonawalla Fincorp offer Personal Loans with favourable terms and conditions. You must review all the terms and policies, such as interest rates, repayment tenure, associated charges, etc., and secure the best loan offer that meets your requirements.
Yes, you can easily get a Personal Loan from Poonawalla Fincorp at competitive interest rates with a flexible repayment tenure and a hassle-free application process.
A Personal Loan can be used for multiple purposes, such as weddings, travelling, higher studies, medical expenses, etc.
Yes, Poonawalla Fincorp offers a Personal Loan with flexible repayment tenure of up to 60 months.
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
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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