A personal loan is one of the best financial instruments that can be used to fulfil your emergency needs. Credit cards and bank loans are the most frequent types of loans, but with a personal loan, you get the flexibility to use it for multiple purposes like education, medical expenses, home renovation, or paying off your previous debts. However, the best part about a personal loan is the easy procedure minimum documentation, quick verification, and instant approval. You can easily apply for a personal loan via personal loan apps.
Availing a loan might help you address your urgent financial needs while simultaneously building your credit history for future borrowing chances. With the availability of so many instant cash loan apps, you can choose the one that offers the best blend of low-interest rates, good customer support, minimal charges, and fast processing.
Before you apply for a personal loan have a look at the benefits of a personal loan and the situations in which you can use them.
Benefits of Personal Loan
A personal loan is a savior for many people during emergencies. A personal loan helps you tackle your financial difficulties like a pro and takes off the burden from your shoulders. Here is a list of benefits that comes with a personal loan.
As personal loans are unsecured loans there is no need for collateral to obtain this loan. A personal loan is available to you based on your creditworthiness and payback capabilities. As there is no collateral required for a personal loan the interest rate of this loan can be a bit higher than secured loans.
Personal loans do not specify any end use. You can avail a personal loan to fulfil any of your personal needs. Be it home renovation, medical expenses, vacation, education, or making big purchases. When you apply for a personal loan on the personal loan app you do not need to indicate the purpose of your loan to the lender. You can use your personal loan amount to address any of your financial needs.
Minimal Documentation and eligibility Requirements
A personal loan requires less documentation as compared to other types of loans. Along with that, the eligibility criteria for a personal loan are also minimum. The lender generally considers your age, credit score, income, residential status, and occupation for seeing if you are eligible for the loan or not. These eligibility criteria are the same for almost all lenders. However, you can check the eligibility requirements and list of necessary documents on the instant cash loan apps of your lender.
Flexible Repayment Period
A personal loan allows you to make partial payments of your loan amount. During your loan process, you will be asked for a flexible repayment period between 6 months to 24 months. With the repayment flexibility, you do not have to worry about repaying the loan amount right away. You can pay back your loan in manageable instalments with low EMIs.
Easy application Process
It is very easy to apply for a personal loan. With the help of personal loan apps, you can now apply for a personal loan in a few clicks. All you must do is fill out the application form, upload the necessary documents and send your application for approval. The approval process only takes up to a few minutes. Once approved the loan amount will be transferred to your bank account.
No hidden cost
Personal loans have no hidden charges or fees post application. The lender is obliged to state all the costs as well as the interest rates to the borrower. You can expect total transparency throughout the loan process.
Situations Where You Can Use a Personal Loan
Emergencies or unexpected financial difficulties can occur at any time without warning. These expenses sometimes are so huge that they might throw you off your budget and drain all your savings. In such a situation personal loan can come to your aid. Here is a list of a few emergencies in which you can take the help of personal loans
Medical expenses can take a toll on your pocket especially if you do not have medical insurance to cover your bills. In such cases, availing a personal loan can offer you the necessary funds for getting the best treatment without stressing about the money.
Moving from your hometown to a new location for a better career opportunity is quite normal these days. However, setting up a new place can be expensive, especially buying home appliances and building that comfort of home. Thus, in such a scenario you can apply for a personal loan and suffice all your urgent needs.
Indians are known for hosting big fat weddings. Bringing your dream wedding to life can come at a huge cost. With a personal loan, you do not have to limit yourself to fulfil your desire of a fairytale wedding. A personal loan is a multipurpose loan so you can use it for covering any cost of your wedding. Though a personal loan will not cover your entire wedding cost, it can cover some of your wedding expenses.
For Education Purpose
Education is not cheap these days. You must keep aside a sizeable amount of funds for securing your child’s future. A reputable college for degrees like MBBS, MBA and B-Tech charges lakhs of rupees as fees, not only that but there are also some additional expenses like living and food expenses. You can apply for a personal loan to pay off tuition fees and other expenses associated with your child’s education.
Consolidation of Debts
If you have any high-interest debts like credit card payments, high-cost business loans, home loans or any other kind of loan, you can pay them at once by taking a personal loan.
Apart from these, you can also use your loan for home renovation, making a big purchase, financing small businesses or for an unplanned vacation.
So, there you have it; a list of benefits and situations when a personal loan might come in handy. Personal loan apps have simplified people’s lives by giving them fast funding to meet their emergency requirements. No matter what your reason is, you can opt for a personal loan using instant cash loan apps. Before you leave, here is some advice for you. We recommend that you thoroughly check the eligibility criteria, terms and conditions, and list of necessary documents before applying for a loan.