A personal loan is a type of product that helps you borrow a lump sum amount without having to submit any assets to the bank/NBFC. This is a collateral-free loan. As you know, secured loans’ non-payment leads to collateral cease. But such a thing doesn’t happen when taking a personal loan. The personal loan interest rate might be slightly higher than that of a secured loan, but the loan limits are flexible enough to meet your financial obligations. Continue reading this article further to know more about the benefits of personal loans.
A Personal Loan Comes Decked with Benefits
Well, the following list of benefits makes a personal loan an ideal solution for all your financial problems –
Get a Loan Instantly
The loan will be in your account within minutes or seconds. Usually, the ones who are pre-approved for a personal loan get this benefit. He or She is the one who gets a pre-approved loan offer from the bank due to his/her good repayment history. When you’re eligible for the same, you’ll get a notification on your registered mobile number or email address.
Flexible Repayment Periods
Personal loans come with tenure options ranging from 12 to 60 months. It means you can repay the borrowed loan amount plus interest in equated monthly installments over 12 to 60 months. The longer your tenure, the less will be your EMI amount.
Affordable Rate of Interest for Easy Payout of the Lump sum Amount
If you’ve done your research and have compared lenders on loan, interest, eligibility and tenure, you can find a suitable personal loan. You may find some lenders charging more on personal loans. But some can provide you the lump sum amount at an affordable rate ranging from 10.50-19.00% per annum.
What’s More on the Repayment Front
A personal loan doesn’t have any limitations on the mode of repayment. You can repay your loan via ECS, NACH, UPI, etc. But ensure the EMI doesn’t bounce. Because in that case, you need to pay a penalty. This is not a late payment penalty, it is the charge for payment bounce.
You’ll be notified about the same via SMS or email. So, ensure the provided data is up to date in the lender’s system. Otherwise, you can’t get the important information on your loan.
Use the Tools for a Smooth Repayment Experience
Before applying for a personal loan, do check the online tools available to calculate eligibility, EMI and more. Let’s see how it works?
Sunita is finding it difficult to ensure her child’s education owing to her constrained budget. Her friend suggested she take a personal loan for the same. Sunita is new to this term and doesn’t know much about it. So, she went online and searched for the same. There is a wide range of personal loan lenders online. She began evaluating personal loan offers based on the insights provided by the Personal Loan EMI Calculator.
Lender 1 offers her INR 5 Lakh at an interest rate of 14.00% per annum for 60 months. On the other hand, Lender 2 is offering her INR 6 Lakh at an interest rate of 16.00% per annum with a tenure option of 36 months. Below are the EMIs of both lenders as per the calculator
Lender 1 – EMI – INR 11,634 and interest – INR 1,98,048
Lender 2 – EMI – INR 21,094 and interest – INR 1,59,392
As you can see from the above example, Lender 1 offers a good deal to Sunita compared to Lender 2. And if she doesn’t use the personal loan EMI calculator tool, she would have never known this and ended up paying a high EMI amount.
So, apply for a personal loan smartly using all these tools to meet your financial needs.
