The finance sector in India has evolved so much better, nowadays a person doesn’t have to sacrifice their life savings to manage unbearable financial crisis! In the earlier time, conventional loan option might help a person manage the financial urgency but an economic burden when they started repaying the loan amount. Thankfully, there are many public and private banks and other Non-Bank Financing companies (NBFC) that offer personal loans that takes very little time to process and disburse the loan amount. Such loan products cut down the processing time by choosing eligibility norms which are easy to prove!
It is fair to say personal loans are meant for the emergency fund management! And following pointers will aptly justify why finance pundits praise the benefits of a personal loan, especially at the time of need for funds.
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Free from collateral security!
As per the general stereotype for the concept of loans goes, we believe one has to give something referred as collateral security, to loan the lender as a guarantee to borrow funds. The collateral security might be necessary for other types of loans, but not for personal loans. Most loan lending institutions sanction a personal loan after evaluating an individual’s financial ability to repay the total loan amount within the tenure period. So as long you fit in the eligibility criteria set by the loan lender, you are good to apply for a personal loan.
It is sad to see some people wouldn’t even consider opting for a loan option as following a tiresome paperwork regime at the time of financial emergency don’t make sense! In such a context, personal loans are ideal since you don’t have to submit any collateral security; the number of documents you have to submit is reduced. Most of the documents asked by the loan lender are to serve the purpose of defending your monthly income status and ability to repay the loan, that’s it! Some loan lenders also offer you online medium to apply for a personal loan for which you have to upload the required documentation to the online application form.
Instant processing time!
It all works in sync! When no collateral security is needed and paperwork is minimum; the processing time on personal loans would eventually be quicker. This is the main reason why finance experts recommend the personal loan as the ideal fund tool to get quick financial aid! Once you submit the required documents to the loan lenders, it takes 2-3 days to process your loan application and 6-7days to disburse the loan amount in your bank account.
It values your credit history!
If you have a good credit score to your title, you can score brownie points even at the desperate time of being in a financial crisis. It is pretty eminent that loan lending institutions can give the benefit of reduced rate of interest that result in more manageable EMIs. The interest rates on personal loans are pretty high and having such benefit at your disposal can be a good thing. Plus, if the need for the funds is greater than the loan amount allowed as per your financial profile, then you can negotiate with the loan lender to stretch the limit on the loan amount. Hence it is always wise to keep your CIBIL score maintained and increased.