Licensed financial lenders like banks and Non-Banking Financial Companies(NBFCs) have been providing many financial and monetary services and solutions to banking customers worldwide. And lending loans is one of their primary services.
A loan is typically classified as secured and unsecured. Loans like personal loans are unsecured, whereas loans like gold loans, car loans, home loans are secured. And the category that distinguishes both is the collateral requirement. No collateral is required in Unsecured loans like personal loans and is preferred for the same reason. Availing of a loan is easy. In fact, availing of any loan is easy if you meet all their requirements, and a personal loan is no different.
Generally, a personal loan process doesn't take much time if you meet all their eligibility criteria to the mark, but If you have more than that, then it is even better as the bank or the NBFC will know that the borrower is good enough to pay for the loan and can pay off the loan amount on time with interest. It is all about the borrower’s ability to take care of their bank account in a suitable manner. An authorized lender can’t stop in any way from not signing off on a personal loan if the applicant is well suited and eligible for the loan. The most problematic aspect of a personal loan is the income. If you have a high salary level and meet all their requirements to avail a personal loan, then the processing is speedy and straightforward but if you don’t have their wanted salary, then taking out a personal loan becomes difficult, and even then if somehow, the lender grants you the loan amount, making sure that every monthly installment is made on time is a necessity to maintain a good credit score so as to pave the way for your future loan possibilities. It doesn’t matter if the loan is of a high amount or low amount, either way, payment failures will make you lose other benefits. Therefore making timely payments is a prerequisite.
Advantages of a Personal Loan
As mentioned earlier, a personal loan requires no collateral. The primary reason for banks and financial institutes requisition of collateral is that if the borrower doesn’t pay the owed loan amount and interests on time, they have the right to auction your asset(collateral), but as a personal loan doesn’t involve collateral, there is no auctioning of your asset. Another classification in loans is based on their purpose. For instance, a car loan is specifically for car-related purchases and expenses, a home loan for a house purchase and needs a house as collateral, but a personal loan can be used for any reason. Availing for construction, renovation, business expansion, hospital bills, furnishing, remodeling, machinery purchases are the most common reasons for a customer’s need for a personal loan. A borrower can even avail of a loan to consolidate their other loans. Debt consolidation is the definition of combining and conquering loans. And a personal loan is the best loan to consolidate debts. The loan amount sanctioned is high, the interest rates are low, and the tenure is flexible. Also, by consolidating debts, a borrower doesn’t have to remember multiple payments or have many principal amounts to pay off. A consolidated personal loan will be the only one that requires Equated Monthly Instalments(EMIs) each month. By searching for a Personal Loan EMI Calculator on google, one can know all about the interest rates and loan details of a personal loan.
Conclusion
All around the world, numerous banks and NBFCs provide loans effectively, and Axis bank is one of the renowned ones with astounding features with millions of customers. <a Axis Bank Personal Loan interest rate begins from 10.49% per annum with a maximum tenure of 5 years. The personal loan features in Axis Bank are extremely advantageous that one shouldn’t miss.
Also read this: Repayment Facilities in Personal Loan