What are the Benefits of getting a Personal Loan?

What are the Benefits of getting a Personal Loan?

Personal Loan is the non-secured loan, it means you don’t need to submit any collateral for getting a personal loan. Personal loan interest rates vary depending on the lender you opt for. A Personal loan is a universal loan, you can apply this loan for any purpose. It acts as an only solution for all your financial needs. A Personal loan is provided based on candidate eligibility and ability to pay off the loan that is credit history of the candidate. A number of lenders are ready to provide you a Personal Loan, it depends on your eligibility to choose the right lender at low interest rates for loan.

When compared to other loans personal loans have some benefits, because of that, people prefer to take the personal loan instead of taking other specific loans or going with the credit cards for satisfying their financial needs some of them are:

Flexibility:

A Personal loan is best for covering your financial needs where you can’t make use of credit card. There you don’t have any option other than to use Personal loan cash inflow to carry out the process. Also going with a credit card and not repaying the amount within a specified time will lead to high interest rates. So people generally prefer to go with the personal loan. Instead of a credit card. The Personal loan also given full freedom to the applicant to make use of that amount for any purpose no question will rise from the lender point of view. The personal loan provides you the flexibility to repay the loan amount within 7 years or tenure depends on the lender.  High EMI payment will incur you with low interest rates for loan and vice versa depending on your eligibility to repay the amount.

Low Interest Rates for Loan

For taking any loan, people no one wants to pay the high interest rates on any taken loans. Personal loan provides you that flexibility, instead of going with credit cards and paying the high interest rates in case of failing to give the amount in specified time period. If you have a good credit card and FIOR (Fixed Income to Obligation Ratio) you can easily get the low interest rates for loan. As many lenders offer you with the best possible low interest rates. Candidates with low credit card score will pay around 15% APR on a credit card balances, while candidates with good credit score will pay only 6% APR. For the small amount of loan it will not make a much difference, if you go for high amount then it will provide you a big difference.

Quick disbursal

Personal loan doesn’t have a big procedure to follow for sanctioning of loan. Other loans they have a list of steps that need to be satisfied in order to get the approval for the loan. Also, you need to submit some collateral for applying other loans. In the personal loan, we don’t need any collateral to submit. Also in a very short span of time, you can get the personal loan amount approved. If you’re the existing customers for the lender, where you’re applying for the loan then it will be easier for you to get the loan approval also by online you will get the loan approval.

Upgrade Your Credit

If you have bad credit score, you’re unable to pay the loan taken on credit card on time. Personal loan is the best choice for you to pay your credit card dues so that you can maintain the good credit score. Which will help them to get any loans in the future at low interest rates for loan. It also protect you from ruining your image in the market. Also, before applying for a loan, check your CIBIL score, as the lender first eye is on the candidate credit score whenever an application comes for getting a loan. By paying all the loans on time, you can maintain the good CIBIL score.

Fixed rate of interest

Unlike credit card interest rates, Personal loan interest rates are fixed and you don’t have to keep an eye on the interest rates for your personal loan. The same EMI amount you need to pay for the entire tenure of the loan.

Tax benefit

You can claim the tax benefits for personal if you’re taking the loan for construction of home or purchase of loan for this you need to submit the necessary documents to the lender for getting tax benefits under section 24 B up to Rs. 2 Lakhs.