Anyone can have a financial need or a problem at any time. For instance, today is the 50th birthday of your mother. You want to surprise her on her birthday by taking the whole family on a trip abroad. You’ve been delaying a home repair for months, yet it demands immediate attention. Or it could be a family member who needs surgery right away because of an illness or accident. We need a large amount of money for these financial problems. It might be difficult for you to quickly arrange such a sizable sum.
One option is to apply for a personal loan. Based on your eligibility, it allows you to borrow a favorable amount right away. In a matter of minutes, you can make an application for a personal loan through the internet or mobile banking. The bank will take a fair amount of time to process your loan application. If the bank agrees to pay you the loan amount, they will send it directly to your bank account. This means you have enough money to take care of your bills or financial emergencies right away.
With real-life cases, this blog will show you the benefits of getting a personal loan. This will help you comprehend the true worth of a personal loan as a financial choice.
Benefits of a Personal Loan:
- Collateral free Loan
A personal loan doesn’t require collateral. This means you don’t have to put up any collateral to get the loan. Personal loans make a viable financial option for many different types of borrowers.
- Usage flexibility
You can use a personal loan for a variety of purposes. There are many ways you can use the loan amount to meet your financial needs. You can pay for your mom’s birthday trip, fix up your house, or do both with the loan amount.
- Significant Loan amounts
Fill out an application for a personal loan if you need to borrow a lot of money. Loan amounts start at a different amount for each bank. The loan amount ranges from ₹50,000 to 30 to 40 lakhs.
In addition, a bank will give you a reasonable loan amount based on your eligibility. A person’s income, debt-to-income ratio, credit score, and length of tenure all play a role in their eligibility.
- Competitive interest rates
There are good interest rates on personal loans that you can get. Any bank or other financial company can have a different rate. It’s best to apply for a personal loan at a bank that has low interest rates. This will make a change in your loan payments.
To set a fair interest rate, banks take into account your job, income, debt-to-income ratio, credit score, and loan tenure. A strong financial history can help you get a favorable interest rate on the loan. It also helps get offers for credit cards and personal loans that have already been approved.
- Feasible repayment tenure
Personal loans from most banks are good for one to five years. It could be 7 years with some banks. The personal loan’s tenure is your choice. So, make a choice with care.
Understanding the true value of Personal Loan:
The following examples show how useful a personal loan can be:
- Medical emergency
Let’s say your brother is in a terrible car crash. People help him get to the hospital right away. During the checkup, the doctor suggests brain surgery as a way to make sure the patient lives. It takes a few lakhs to have surgery. Having to arrange the amount within a few hours puts you in a difficult situation.
Making an application for a personal loan could be helpful in this case. For a loan from the hospital, you can use online or mobile banking to apply. The bank will promptly handle your loan request. As soon as the bank agrees to the loan, they will send the loan amount to your bank account. The on-time funding makes the planned surgery possible. This might keep him alive.
- Major life event
Consider that your daughter is all set to get married. You would want to create your daughter’s ideal wedding as a parent. To make this happen, you will need a lot of money. Personal loans with low interest rates might help your kid reach her goal. Depending on your eligibility, you may be able to borrow a large sum of money at a reasonable interest rate. Use right away!
- Debt consolidation
You have several credit card and loan payments that are due right now. The amount of interest you owe is going up every month. By opting for debt restructuring, you can find a way to escape this interest trap.
Personal loans have been helpful for consolidating debt. As previously mentioned, you can secure the loan at a fair interest rate for the duration of your choice. This lets you pay back the loan without feeling stressed.
Wrapping it up
A personal loan is an easy way to get money. It helps you handle emergencies and financial needs. Its uses are limited and don’t require collateral. In a few clicks, you can make an application for a personal loan online. Your loan application will be processed by the bank as soon as possible. The loan amount will be sent to your bank account right away if you are approved.
