personal loan in India

9 Reasons to Choose a Personal Loan in India

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Whenever someone needs funds to cover a big-ticket expense, they look towards a personal loan for financial support. However, have you ever wondered what makes personal loans the favourite funding option among borrowers? Let’s look at a few reasons to choose a personal loan in India.

  • Easy to Apply: Compared to other loan types that require several lender visits, personal loans are easy to apply from the comfort of a laptop or smartphone. Most lenders support 100% online loan applications these days.
  • Reasonable Interest Rates: Lenders determine each applicant’s personal loan interest rates reasonably according to their income, DTI ratio, credit score, and other parameters.
  • Simple Eligibility Criterion: Personal loans have easy eligibility criteria, including the applicant’s age, income, DTI ratio, employment, credit score, and other easy-to-fulfill conditions.
  • Minimal Documentation: NBFCs sanction personal loans at minimal documentation requirements. They require identity, income, and residence proofs to verify the applicant’s credentials and approve loans within minutes.
  • Collateral-Free Loans: Personal loans are unsecured loans that applicants may avail of without any guarantor, security, or collateral.
  • Flexible Repayment: Flexible repayment means applicants may select their loan term from a few months to multiple years with EMIs suitable to their monthly budget.
  • Fast Approval: Online loan procedure, no collateral involved, and paperless documentation are a few reasons why lenders can now approve loans within minutes.
  • Quick Disbursal: Once approved, many lenders disburse the loan amount directly into the applicant’s bank account within 24 hours.

These reasons make personal loan offers the most hunted finance options in India.

Must Read: Know How the personal loan EMI calculator can help you to manage your Big expenses

5 Reasons Why Indian Apply For A Personal Loan

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A personal loan can be a lifesaver when it comes to handling financial challenges of facing an emergency. A personal loan is a popular credit instrument with the people for its easy access, fast approval, and minimal documentation requirement. It requires only a few documents to get the quick approval of the personal loan. If an applicant’s loan application meets the lender’s eligibility criteria, they can get a personal loan in no time without any hassle.

Before you think of getting a personal loan, check for the options of the best personal loan in India and look for a lender that offers the lowest personal loan interest rate. Here are a few reasons Indians take personal loans. Here are the reasons.

5 Reasons Why Indian Apply For A Personal Loan

  • Credit History

Taking a small unsecured loan and timely repayment of this loan maintains your credit history. This also ensures the repayment ability of the loan borrower. This credit history helps to get substantial credit like home loans, business loans, or car loans.

  • Debt consolidations

If a person has numerous debts and cannot manage the debt trap, then personal loans are a great way to deal with any such unsolicited situations.

  • Medical Expenses

Sometimes, a medical emergency creates a scenario that forces people to avail a personal loan. In the absence of medical insurance, one might need to pay a hefty amount as a medical expense. In such a scenario, personal loans help the person to cope with the expenses.

  • Business Set up

In India, entrepreneurship is a common play, and to manage such start-ups, people avail of personal loans. 

  • Planning Vacation

Many Indians plan their vacations with a personal loan and manage all their expenses with the loan amount. They prefer to repay the amount in easy installments.

Additional Read: Know how to get a pre-approved Personal Loan in India?

Important Factors to Know Before Taking a Personal Loan Balance Transfer

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What Is a Personal Loan Balance Transfer?

A personal loan balance transfer is the option to transfer their existing personal loan balance from one lender to another. It happens when a different lender offers lower interest rates, better service, top-up loans etc. Though the offer will look lucrative, you must evaluate the offer before taking personal loan balance transfer. So, here are few factors that you need to consider:

Important Factors to Know Before Taking a Personal Loan Balance Transfer

  • Consider The Processing Fees and Surcharges

While transferring from one lender to another, you may be charged a certain processing charge by the old lender to close the previous loan account. You should calculate these additional charges to determine if the transfer is still worth it.

  • Check Terms and Conditions

Read the terms and conditions that the new lender offers you before signing the deal. Ensure that there are no hidden clauses before taking the decision.

  • Evaluate The Revised EMI And Tenure

The people transfer their loan from one lender to another due to lower instalments offered. However, one must learn the tenure they offer as extended tenure will lead to an overall higher payment.

  • Additional Offers

Some lenders offer pre-approved personal loans and additional discounts on financial products when you opt for a balance transfer. Sometimes you end up availing of services that are not required to avail the offer. So, think twice if you require those additional policies even though the offer is attractive. 

While personal loan balance transfer is undoubtedly excellent for reducing your financial burden, it is imperative to think twice and judge if the lucrative offer is beneficial. 

Additional Read: Avail Personal Loan of up to Rs 10 lakh with Easy Tenure with Fullerton India

How a Personal Loan can Be a Lifesaver in a Crisis?

In this fast-paced world, instant loans are the most viable financial instrument. Everyone requires instant cash to finance all their needs and emergencies, and what better option than a personal loan in India. 

A personal loan is an unsecured loan, so we are not required to pledge any asset as security. The loan request is sanctioned based on your past credit score and present income. 

Some of the reasons why a personal loan is a saver in crisis are:

  1. Sanctioned amount: Be it a medical emergency, wedding expenses, vacation or even business requirement, personal loan offers an amount that can fulfil all your needs.
  2. Flexible tenure: Unlike other loans, the repayment tenure for a personal loan is flexible. So, based on your choice, you can repay the total amount in equated monthly instalments.
  3. Flexible interest rate: The interest rate for a personal loan is not fixed; it varies based on your income, age and credit score. You can also negotiate with the lender and get your interest rate reduced.
  4. Easy approval process: Unlike other loans which require a lot of documentation and take weeks for approvals, the processing of a personal loan is quick. With minimum personal loan documents required, you can get hassle-free loan approval and also enjoy quick disbursal.
  5. One loan for all your needs: Personal loan does not have a restriction on the fund’s usage. You can use the loan amount as per your requirement.

Many people shy away from a personal loan. However, it is a much safer option than managing all your expenses through a credit card. You can apply for any reliable lender in the market and enjoy the benefits mentioned above.

Must Read: How Borrowers Can Make Money By Availing A Personal Loan?