Leading a peaceful and comfortable lifestyle is a massive struggle for the salaried with increasing costs. Managing aspirations without exhausting your savings becomes an extensive challenge. The instant personal loan provided by Fintech comes to the rescue under these circumstances as they assist in bridging the fund shortage requirements over the short term. Being efficient, quick, and collateral-free, personal loans have a massive hit as this instrument assists in the quick resolution of immediate financial shortages.
A personal loan is considered the best way to avail instant funds to cover your expenditures like medical exigencies, weddings, expensive gifts, trips etc. Online lenders provide you with a loan procedure with minimal documentation. When determining your personal loan eligibility, you must factor in your credit score, income, and repayment history. Also, to decide on the best lender for a personal loan, ensure to consider the lender’s offered interest rate. Suppose a lender, i.e., Axis bank offers you the lowest Axis bank personal loan interest rate than the other lenders at better terms and conditions owing to your long-term association with the bank, then opting for this lender is a good decision to make. Also, as you hold a long-term association with the Axis bank knowing your Axis personal loan status would be easier for you.
Millennials are looking for a personal loan to fund their requirements. During the past years, the number of personal loan applicants has enhanced considerably. As an outcome, digital lenders have made personal loans considerably more accessible for borrowers. They are security-free choices, which makes getting funds easier.
Are you one of those wondering why so many individuals select to avail of personal loans through the online route? Here’s a list of crucial reasons why personal loan is becoming immensely popular in India. Have a look –
Hassle-free loan procedure –
Previously availing of a personal loan was a difficult and hectic task. You had to undergo a long and tedious procedure to get the loan application approval. Lenders and banks were even slow to offer loans. After various visits and long waiting hours, you would receive the loan disbursal.
The introduction of technology now has made the process of availing loans through the online route simpler. By using advanced technology, online lenders such as LoanTap, MoneyTap, NAVI etc. have created a platform from which you can avail loan on the same day of submitting the application. After you submit the necessary documents, you can finish the loan application in just 5 minutes. Once your personal loan is approved, the amount will be credited instantly to your savings account. The entire loan process is done through the online route. As an outcome, there is zero need to visit the lender or bank.
Flexible repayment tenure –
A personal loan provides you with an adequate amount to meet your financial requirements. By approaching digital lenders, you can get loan proceeds ranging anywhere between Rs 50,000 and Rs 10 lakh Loan at flexible repayment tenures. Basically, the loan repayment tenure for the instant personal loan ranges anywhere from six months and sixty months. You can select a flexible loan tenure that best matches your requirements.
A personal loan can be paid back comfortably with a repayment tenure longer than six months without any extra charges. Additionally, you can also get quick personal loans at lower EMI and flexible terms and conditions. The longer your repayment tenure, the higher the interest amount or vice versa. Moreover, availing of the personal loan and making the EMI payments on schedule will ameliorate your score. Longer repayment tenure results in reduced EMI; however, it demands a higher interest component. So, ensure to pick the repayment option after careful analysis, according to your preference.
Personal loans usually are unsecured loans. So, you do not require pledging any security or collateral to get this loan approved. You no longer require going through tedious paperwork for the loan as the processing of the loan needs just basic documentation.
Check out different documents required to apply for a personal loan from any digital lender in India –
∙ PAN card
∙ Voter ID, Aadhaar card, driving license as proof of identity
∙ Bank statements for the past 6 months
∙ Salary slips for the last 3 months.
Affordable rate of interest
One of the crucial reasons why individuals prefer personal loans over other kinds of credit is their affordable rate of interest. As an outcome, they do not feel burdened by the higher rate of interest. Presently, non-banking financial companies or digital lenders provide a lower rate of interest, starting from around 18 per cent p.a.
For working professionals, it is considered the best financial route to avail of this option when they witness any financial exigency.
Zero limitation on usage
You can use the funds for different reasons. Unlike vehicle loans or home loans, personal loans do not put a limitation on your usage. You can fill up the personal loan application online for any expenditures like home renovation, higher studies, vacation, purchasing of costly gifts etc.
Also, NBFCs or banks will not investigate where you spent the funds and for what purpose you use them There are zero restrictions on the end usage, and transactions of the loan proceed. However, you must always ensure that the purpose of availing funds through a personal loan must be legitimate. You must not use the funds for any speculative purpose, as this is not allowed.
Why opt for a personal loan from digital lenders?
Many lenders assure to offer personal loans with a lot of benefits. However, there is zero assurance that you will receive the best deal and rate of interest. Many digital lenders, as they are new in this field, try to grab your attention by providing you with attractive interest rates. Note that before you zero on any digital lender, you must thoroughly read their terms and conditions and accordingly decide which lender is best for you.
The best thing about opting for digital lenders is that they make personal loans accessible to you through apps. So, you can place an application for a personal loan from the comfort of your home.