Why you should opt for personal loans?

Life is full of surprises and no matter how much you plan in advance at times there can be financial emergency knocking at your doorstep. These are the most common worries that can put your financial health in a jeopardy situation. If you want to borrow money and don't get a minimum interest rate it can seriously derail finances and put you off-track. If you borrow from traditional lenders it can burn a big hole in your pockets.

To overcome such situation you can opt for a personal loan. It is a short to a medium-term financial tool which can be used to meet your quick financial needs. There can be a lot of reasons where you can utilize personal loans such as home renovation, cover wedding expenses, for higher education, buy machinery or inventory for business purpose, for debt consolidation, etc.

Today, India's leading banks and non-banking finance companies offer personal loans to both salaried and self-employed individuals. With online facilities, you can avail finance at attractive interest rates with minimum documentation and faster processing. If in case, you possess and maintain a good credit score of 750+ you can avail negotiate with the lenders for low-interest rate deal, higher loan limits or waiver on the processing fee, etc.

Here are some features and benefits of availing personal loan:

Attractive Interest Rates

The interest rates on personal loan are offered to customers on the basis of salary, the sum required, tenure and other important credit. The interest rate differs across different lenders. It is based on your employment type such as self-employed or salaried, CIBIL score, existing monthly installments, etc. Your loan tenure will decide the interest rate and the EMI.

Flexible tenure option

Personal loans can be availed for time flexible tenure of around 12 -60 months. However, an individual has to remember personal loans with long duration are offered at higher interest rates and for the shorter duration, it will save money from your wallets.

Instant Loan Disbursal

Gone are the days when people had to run pillar to posts to fill up forms, stand in queues for submission and finally wait to know the loan status. With instant application online you don't have to go through all these hassles. You can avail loan at minimum paperwork and get approved within 2-3 working days. Once, approved the money is credited through your bank account in 24-48 hours. Thus, within a week's time, you get a timely help to fulfill your financial goals.

No Collateral securities

Personal loans are an unsecured form of loans wherein you don’t have to keep an asset such as jewelry, car or property papers as collateral with the lending firm. Unsecured loans are offered based on the credit history of the applicant. If you have not defaulted on payments, have a good income your loan gets sanctioned within a couple of minutes.

Tax Benefits

You can avail tax benefits if you use the personal loan for home refurbishment, renovation or purchasing a property. You can avail the tax deduction up to Rs 1.5 lakh under sector 24B for the interest paid in a given financial year.

An personal loan would be the first financial help for your family in your absence.