get a personal loan

Why Should You Prefer an Online Personal Loan over a Traditional Loan

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Loans have been helping people overcome financial difficulties for ages. Today, there are several lenders in the country, offering a variety of loans to customers as per their needs. Still, personal loans have one of the best loan options most borrowers opt.

With the strides that the Fintech industry has taken digitally, online loans have taken over traditional loans. Now you can get an insta personal loan in the blink of an eye from top lenders in the country.

Just make a few clicks on your smartphone or personal computer and apply for an online personal loan with the lender of your choice.

When wondering about the interest rate on a personal loan, it may start at as low as 11.99% per annum with the best lenders in the country.

Read on to know why you should prefer an insta personal loan over traditional loans.

  • The loan disbursal time for a traditional loan may be anywhere between seven to 14 days. In the case of an emergency, you may not have so much time. An online personal loan is quickly and conveniently disbursed. You can get an online personal loan within 24 hours of loan approval in some cases.
  • Online personal loans have a paperless process. The digital loan approval procedure does not require the borrower to visit the lender’s branch physically to get the loan approved. 

Must Read: Know Your rights as a personal loan borrower

Should You Get a Personal Loan or Gold Loan?

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Personal loans are collateral-free loans, while gold loans place gold as collateral and determine the loan amount based on the gold’s value. 

Whether you get a personal loan or gold loan depends on your financial assets since not everyone has gold to spare. When making this decision, there are some key differences you need to be aware of. 

Difference Between Personal Loan or Gold Loan

  • Unsecured vs Secured Loan

Gold loans require gold pledged as collateral (secured), while a personal loan requires no collateral (unsecured). 

  • Interest Rate

Gold loan interest rates can go up to 24% p.a. Meanwhile, personal loan rates are usually competitive, starting at 11.99%. You can determine your rate using a personal loan interest rate calculator.

  • Loan Amount 

Your lender determines the gold loan amount based on the gold’s value, sanctioning a loan of up to 90% of the gold’s value. Personal loans usually have an upper limit of about Rs. 25 lakhs.

  • Repayment

Gold loan tenures are usually between 3 months to 3 years. You can take personal loans for up to 5 years.

  • Documents Required

Gold loans also require proof of ownership of the pledged assets. Less documentation is required for personal loans. 

  • Processing Speed

Gold loans may take a few days for disbursement. In contrast, personal loans can be approved instantly, with disbursal within 30 minutes if you meet the eligibility criteria.

Understanding these differences ensures you make the right decisions for your finances. With Fullerton India, you get personal loans approved instantly at competitive interest rates and flexible repayment tenures!

Must Read: How Does a Personal Loan Help Settle Previous Debt?

Why Is A Flexible Loan Preferable Over Regular Loan?

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With the rising prices, everything has become super expensive. Many people opt for a personal loan to cover all their finances. All the financial institutions offer flexible personal loans, which offer the freedom to draw down and repay the loan amount per your needs and convenience. You can apply for personal loan here: https://www.smfgindiacredit.com/personal-loan.aspx

What are the Benefits of Flexible Loan?

  1. Versatile: A regular personal loan offers a fixed interest rate and tenure under which the borrower has to repay the amount. A flexible loan, however, offers you the versatility of repaying the loan amount as per your requirements. This system is very convenient when the borrowers do not have a fixed monthly income.
  2. Interest: The regular personal loan offers interest and the loan amount, which the borrower has to repay to the lender in pockets of small EMIs every month. In a flexible loan, the borrower can use the sanctioned amount as per their requirements and the interest is paid only on the amount used.
  3. Credit score: In a regular personal loan, if you miss out on any EMI, the credit score is directly impacted. With the flexible personal loan, individuals get enough time to repay the loan amount. Thus, the credit score is not adversely impacted.
  4. Personal loan documents: The documents required for a regular personal loan are much harsh and strict compared to the flexible personal loan. 

Conclusion

The above reasons are clear indications of why if you get a personal loan, the flexible loan offers various benefits and is more beneficial for the borrowers.

Must Read: What Is The Best Option- Credit Card, Overdraft, Personal Loan?