Benefits Of Personal Loan

First of all, a personal loan is an unsecured loan which means no collateral is required. According to the RBI, personal loans account for 35% of total bank credit. A personal loan is the amount of money which we borrow from the bank to fulfill some of our needs or some luxuries like buying a car, going on a vacation. All the terms and conditions of the personal loan, every person needs to check. Which always allows the person to do so without paying the penalty amount for the foreclosure of the loan. The first question that arises to our mind before taking a loan is what would be the interest rate, what will be the tenure? So to answer this we can take help of the Personal EMI Loan Calculator.

So let’s talk about the advantages of a personal loan -

Interest Rates : 

As compared to secured loans, personal loans have a higher rate of interest but with collateral attached. And the interest rate is much lower than the interest charged by a private moneylender.

No Restriction : 

So there is no restriction on how the funds are spent. 

Tenure : 

The repayment of the loan can be extended up to 60 months. And you can also choose the tenure, depending on your needs.

No Collateral Required : 

It is one of the greatest advantages that collateral is not required for a personal loan.

Short Procedure : 

The documents required for a successful personal loan are very few. Some bank account statements and KYC details are only required.

Down Payment : 

If you have a big expense coming so you can always take a personal loan to pay the down payment. 

Fullerton India Personal Loan : 

You can apply for Fullerton India Personal Loan online or on their website. And there’s an instant disbursal which means that your loan will be approved in just 10 seconds if you are a premium customer.

Easier to Manage : 

Personal loans are very easy to manage. It helps to consolidate debts in case of multiple credit card accounts. A personal loan with a fixed interest rate and fixed tenure is much easier to manage than different credit card accounts with variable interest rates and tenure.

Medical Emergencies : 

There can be several times when your loved ones could be fighting for their lives but a due shortage of money they are not able to pay for the hospital. In that case, a personal loan can always help you save your family. 

Customized Plans : 

Many banks like Fullerton India Bank have specific personal loans according to your needs like Wedding Loan, Home Renovation Loan, etc. These loans are exclusively designed for the concerned need.

As discussed above, all of these are advantages of a personal loan. But there are also some disadvantages of personal loans. Like a person having a low credit score will have to pay a much higher interest rate. And also personal loans can always increase your debts.

Conclusion -

So, is it a personal loan for you? Yes, a personal loan comes with so many advantages, and obviously, it helps you with funds and fulfills your needs. But always, before accepting any personal loan, always check the interest rates and tenure period with the help of the Personal Loan Calculator to determine whether you can afford the monthly payments that you’ll be supposed to pay to the bank. And always find the best deal which is suitable to your needs and by checking all the options available in the market.