Why is it Useful to Apply for a Personal Loan?

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A Personal Loan can help you manage major financial crunches effortlessly. Thus, it is one of the highly availed financial products in India. People avail Personal Loans for all types of funding necessities starting from household to business to medical emergencies.

Moreover, as studies reveal, NBFCs in this country will grow around 25% to 30% in the coming years which will also increase the competition in the lending market. Nevertheless, each of them competes to offer the best features and benefits which are beneficial to borrowers in many ways.
People apply for Personal Loans owing to such exclusive features and benefits. If you’re still doubtful, here are some other reasons to check out.

There’s no restriction on its usage.

One of the advantages of a Personal Loan is that it comes with no restrictions on its usage. Meaning, lenders don’t need customers to provide a reason for disbursing the credit.

Now, some of the purposes of using these loans include:

I. Wedding
A wedding in the family is an event everyone looks forward to and wants to conduct in a grand manner. Hence, availing this unsecured loan can help finance the wedding without any hassle.

II. Debt consolidation
Uncertainty in business brought by market unpredictability can hit any firm, any time. A business can fall short of revenue during these times and face difficulties in re-paying the outstanding bills. So, several small entrepreneurs opt for Debt Consolidation Loans for clearing their debts and maintaining a cordial relationship with suppliers.

III. Higher education
Going for higher education is one of the Personal Loan reasons to avail. Renowned institutes in India and abroad incur higher expenditure on academics including their tuition fees, accommodation and other charges.
Hence, it is more beneficial to go for Personal Loans rather than going for an education loan.

IV. Medical emergencies
One of the primary reasons for good Personal Loan reviews is quick disbursal of the fund. NBFCs can sanction such a loan within 24 hours making it a rapid and ideal financial solution in case of medical emergencies.

No need to go through extensive documentation process.

Non-banking financial companies don’t have an extensive documentation process. Applicants only have to provide the basic papers like KYC documents, proof of business, income statements, bank statements, IT returns, and audited business turnovers.

It’s easy to meet the minimum eligibility criterions.

The Personal Loan eligibility criteria are also minimal which add more to the quick disbursal process. Individuals have to be either salaried or self-employed and age between 22 and 58 years to be eligible for the credit. So, it’s suitable for any individual.

Enjoy convenient repayment periods.

Prominent NBFCs provide repayment periods of Personal Loans ranging from 12 to 60 months. Thus, customers get flexibility and convenience while repaying without making the unsecured loan a financial burden.

Submit an online application with a few clicks.

Those who don’t know how to apply for a Personal Loan can relax because most lending organisations accept online applications. Some even approve the application within a few minutes.

Therefore, Personal Loans are a useful option owing to the reasons mentioned above. Only ensure to approach a trusted lending organisation.

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