Features of a Personal Loan that makes it popular
Posted: Nov 03, 2018
Features of a Personal Loan that makes it popular
Life can throw several surprises in front of you. You will be surprised any moment of time. All your planning s can be shaken all of a sudden, with the life’s dreadful way of tasting us. All of a sudden, there may come a situation, when you may fall into the deep troubles, which can force you towards the call for the instant support. Especially, when the support is required in the form of some financial support, you are left with very few helping hands. In such scenarios, the Personal Loans from any banks or NBFCs may come to the rescue.
The Personal Loans often accompany with several features and salient USPs, which makes it popular among the people in India. Loaded with several unlimited salient features, the Personal Loans are considered as one of the most popular in India. Let’s dive into the features of the Personal Loans, which make it popular among the people in India:
Unsecured in nature
The most popular characteristic of the Personal Loan is it being unsecured in nature. Since the personal loans are unsecured in nature, there is no collateral required, thus making it a very popular in the country. Since, there are no other unsecured loan types, present, which are unsecured in nature, the Personal Loans is a dear to everyone.
It’s the unsecured nature of the personal loans, which make the personal loans very popular and instant. Since, there is no cross-check of the asset or any document to be furnished which establish the liability with the person except with some basic details like income proof, the unsecured nature of the loan, makes it easily available or all, even for those who don’t have any asset, or collateral to put on, to avail instant money to meet their instant money requirement.
Varied options available
Almost all NBFCs and Banks function in this particular loan product. You may find more than 50 destinations or options available for the instant personal loans needs. Perhaps, no NBFCs and banks are there, which don’t function in this particular sector. The options in front of the people for their personal loans needs are enormous and so they may not tend to find it difficult to get a personal loan, meeting their criteria.
The varied options available are the real booster for the people in search of the personal loans and they can negotiate better with the banks and other NBFCs to get a better deal on their loan needs. It’s the varied options and a lot of competitions among them, which offers unlimited benefits to the people, as banks and other financial agencies are trying hard to lure into the customers under their wings.
Flexibility in Use
The other salient feature of the personal loan is the flexibility in use for the Personal Loan amount. In fact, the personal Loans have become famous owing to the fact that with the personal loans, people are completely free on how they spend the loan amount. No one is going to ask you, what’s going to be done with the amount; you are borrowing from the bank.
The Personal Loan amount can be utilized in the way you like. Go out for a vacation, or fulfill your responsibilities, do whatever you want to accomplish with the loan amount. Even, you don’t have to mention the specific purpose of the loan amount, anywhere in the application form, while seeking for the personal loans. Cover your medical bills, spend your money on pet cure, buy expensive gadgets and household items, accomplish your small to big dreams, or meet your urgent financial needs and requirements with the loan amount. The personal loan allows you with the complete freedom on how you want to utilize the loan amount, without any limitations of any sorts.
This is one of the salient features accompanied with the personal loans. The Personal Loans comes with the instant disbursal feature, which allows the personal loans to get sanctioned and credited in your account within a maximum of 24 hours to 48 hours. Even, in some cases, it gets credit within 4 hours. While 4 hours seems longer time duration for you, there are some conditions and some banks, who claim to offer you the Personal Loans within minutes.
Also, in some cases, you are pre-approved for your personal loans and in those particular scenarios, you may see your bank account getting credited with the loan amount, within a matter of 2 minutes. Isn’t that interesting? The Personal Loans are considered as among the quickest disbursal loan types, which comes just after the Credit Card Loans. The instant disbursal feature of the Personal Loans allows the people in meeting the emergency needs of the financial and get out of the financial crisis within a matter of a day.
When it comes to the Personal loans, it is featured with the less documentation. With the less documentation needed, the process, in fact, becomes too speedy for the approval of the Personal Loans. With the mindset to improve the swiftness of the Personal Loans, the paperwork required is kept at minimal. When you talk about the Documents required, the Income proof, the age proof, the identity proof are just some of the documents, which are needed to furnish for the approval of the Personal Loans in India.
The Personal Loan is hassle-free and thus are the most beloved Loan types in the country. The Personal Loans offer customers to get an instant and online solution to their financial needs and people can easily get an online approval for their Personal Loan Application, in no time!
No collateral required
As discussed, the Personal Loans are unsecured in nature and thus they require pledging no collateral at all. With no collateral at all, you have the chance to get the Personal Loans without any worry. Even, if you aren’t able to pay the loan amount, it doesn’t take a lot from you (expect, coming on the defaulter’s list). With no collateral required, there is a huge sigh of relief to the people, don’t have any collateral or asset to put in, and perhaps may require Personal Loans in future. All you need is to furnish the income Details, and address proof and identity proof, and you will be approved for the Personal Loans in no time!
With the Personal Loans, comes the easy repayment option. As the Personal Loans are available for the period of 1 year to 5 years in most of the cases, you are left with lots of choices to make a perfect choice over the repayment terms and conditions.
You can analyze your financial capability and can adjust the desired EMIs. However, you need to decide on the loan tenure for doing this, as it’s the loan tenure along with the Loan amount and rate of interest, which accumulatively decides the Final EMI to be paid each month. However, with such a wide spectrum of loan tenure, you can make a better choice depending on your preference!
Best Interest rates
The rates of interest on Personal Loans are very attractive. However, there have been some eyebrows raised, when it comes to the comparison of the rate of interest of Personal Loans in comparison to several other Loan types. But still, we must remember that, since the Personal Loans are the unsecured loan types, the rates of interest will be towards the higher side when compared to the secured form of loans, like Home Loans.
However, since there are several players in the market in the Personal Loans, you can have a better choice of the Banks and NBFCs, which are offering you personal loans at the better rate of interest. Even, you can ask for the better deal on your Personal Loans and can negotiate with the lenders, understanding that there are many other players, who are ready with several other exciting offers and deals.
Online Personal Loan Calculator
The Personal Loans as offered by several banks and NBFCs come with Online Personal Loan calculator, which is just the proof of our advancing technology. With the online Personal Loan Calculator, the people can better calculate the EMIs, they will have to bear each month and can also calculate the total loan amount to be paid back. With such a tool you can better adjust the factors, like Loan Tenure, the loan amount and can calculate the Total cost of the Personal Loan, you will have to bear!
Tax Benefits and Exemptions
As prevalent in the market, that Personal Loans don’t come with the tax exemption is a complete myth. There are several tax exemptions associated with the Personal Loans. The Personal loans don’t come with the direct tax exemptions and it depends on the way you spend the amount you borrowed to avail the tax benefit.
Take for an example, the section 24B implies that "Income from House Property" where deduction towards interest paid on the borrowed loan amount can be claimed as an exemption from the income, considering a person utilizes the borrowed amount towards covering "home renovation purpose, and considered valid under the construction of the house, acquisition of the property, repair, and renovation of the home" is liable for the tax exemption.
Even, of a person utilizes the loan amount for the business; the person is liable to get an exemption as a result on the reduction of the net taxable profits of the business and thereby reducing the tax liability of the person.
In the third scenario, is a person purchases any asset, like non residential property, jewellery, shares and bonds, the person is liable to get a tax exemption with the condition that the tax exemption will not be offered in the same year of purchase, but will be offered in the year, when the assets will be sold.
Establish your Credit History
If you are completely new to the financial market, and even don’t feature on CIBIL Score report card, you can establish your credit history through the Personal Loans. However, getting a Personal Loans can be a tricky in such scenario, as your CIBIL Score denotes "NA"; however, if you are able to get a Personal Loan for yourself, that’s’ the beginning of your financial journey and you can establish your Credit History with the Personal Loans.
Option to improve your CIBIL Score
Many people are the sufferers of low CIBIL Score. Owing to their bad refinancing capability in the past, the CIBIL Score features a very low score. The banks generally require a normal score of 750 for availing Personal Loans; however, in cases, it has been seen that there are several other NBFCs and other lending institutions which approve Personal Loans at a very low score. This offers you an opportunity to improve your Credit Score. What you need to do to improve your Credit Score? Just one thing; pay your EMIs well on time and doesn’t default on your borrowed amount.
You can easily improve your Credit score with the timely repayment of your EMIs. Make it a habit of paying your EMIs on time, and by the time, you pay your Personal Loan due completely, you will gather very handsome credit score on your name in the CIBIL Report.
The Personal Loans are imbibed with several features, which make the Personal loan as one of the most popular among the people in India. It has been seen that the younger generation is availing this type of loan offerings to accomplish their needs and demands. This loan financing can help you with the instant disbursal loan amount, which you can utilize to cover your emergency needs and to meet your goals.
However, you must remember that you should avail the Personal Loans just to accomplish something meaningless in life. Every loan is accompanied with interest, which you need to pay. You will be incurred EMIs and defaulting it may lead you to the decrease in your Credit core and completely defaulting on the loan may result in your name appearing on defaulter’s list. Utilize the benefits of Personal Loans smartly!