​​Is applying for a personal loan a good option? Find out now!

A personal loan is an excellent financial instrument to meet your different needs. From consolidating your debts to going on a vacation or funding the extra bit for your child’s higher education – a personal loan, as the name suggests, can be used for any personal purpose. A hassle-free application procedure, flexibility, and simplicity – these are the major benefits of this loan you must know of as you hit on the personal loan apply online button. 

Besides funding your personal goal-oriented needs, the loan’s instant nature makes it the best choice for meeting your emergency needs. May it be an unplanned medical expense or a big-ticket purchase to fund your child’s marriage, a personal loan can come in handy to fund these needs also. Here are reasons why applying for a personal loan is a good option. 

  • Fast approval

By fast, it means within 24 hours in the case of pre-approved personal loans and within two to seven days in the case of regular personal loans. However, note that an important factor considered for the approval of a personal loan is your credit score. A credit score of 750 and above is considered good by the lenders. Having a strong credit score also makes you eligible to avail lower personal loan interest rates

  • Zero need for security or collateral

A personal loan is unsecured in nature, meaning you do not have to provide any security or collateral to avail the loan. Owing to this reason, it is simpler to get a personal loan than other alternative loan options like a loan against security, a gold loan, or a loan against property. However, you must remember that unsecured loans are riskier for lenders as they have no security to rely on in case you default on the repayment. To meet their higher credit risk, lenders generally charge a higher personal loan interest rate than the secured loan options. 

  • Versatility

May it be a vacation abroad, purchasing a new phone, or home renovations, a personal loan is useful as funds availed through it have no restriction on usage. Thus, this loan can be used for multiple purposes and is not restricted as in the case of car loans or home loans. This flexibility in using the loan proceeds for any purpose is one of the important reasons that make this loan popular today. 

  • Helps build a credit score

In case you have no or low credit score, timely repayment of personal loan Equated Monthly Instalment (EMI) in full can help you build your score. However, to make sure that your personal loan EMI is manageable for you to meet regularly, you must ensure to use the personal loan EMI calculator. Using the personal loan EMI calculator allows you to decide on the EMI as per your repayment capacity. 

  • Minimal documentation and simple to avail

One of the major benefits of a personal loan is that the need for documentation is minimal. Lenders require you to just provide your identity proof, address proof, salary slip for the last three months, and bank statement for the past three months showing your income details. If you are applying online, ensure to keep a scanned copy of all these documents handy for a hassle-free application process. 

Additionally, before you hit on the personal loan apply button on the lender’s site, ensure to review all your added details. Correct and accurate details make the processing of your personal loan faster.