Personal loans are a form of quick loan which can be used for any purpose such as paying for weddings, holidays or starting a business. Here are some benefits of applying for a personal loan: 

Rapid disbursal / Quick disbursal of funds

A lot of online vendors disburse loans within 24 hours of receiving a request. This rapid disbursal is ideal if you have an urgent need for funds, or if you’re facing an emergency. 

Must Read: What Are Short Term Personal Loans?

No collateral required 

Since personal loans are mostly unsecured, you do not need to pledge any of your assets. This helps in making personal loans accessible to everyone. 

Fewer documents needed / Hassle-free Documentation 

Applying for a personal loan online is a wholly paperless process – all documentation happens online. Here are the documents you may need, depending upon the financial institution you are applying from: 

• Loan application: To provide details on the loan, such as the amount required and the purpose of the loan, amongst others.  
• Identity proof: Any proof of identity that has been provided to you by the government.
• Proof of address: This might overlap with identity proof, and it includes proof of home or the lease agreement. 
• Employment proof: If you’re employed, lenders need this to verify your payback abilities.
• Income tax returns. 

Using a personal loan calculator may be of assistance. It helps you estimate the sum of money you will need to pay in each EMI installation, which will no doubt help in planning your finances better.