BENEFITS OF A PERSONAL LOAN: - A personal loan is the go-to financing option for people who are facing a financial crisis or emergency or are going for big-ticket purchases. Some of the benefits of a personal loan are as under: -
- FINANCING UPTO Rs. 25 Lakh- The personal loans which the Non-Banking Financing Companies offer can provide financing up to Rs. 25 lakh. The amount of money can be utilized for a wide range of purposes, from renovating a property to getting higher education or covering medical expenses.
- SHORT TERM REPAYMENT TENURES- One of the benefits of a personal loan is the flexible repayment tenure. It ranges up to 60 months. You can choose the tenure of repayment according to your needs.
- RAPID DISBURSAL- After the successful verification of the documents, the loan amount will be disbursed in your bank account.
- NO COLLATERAL REQUIRED- As a personal loan is an unsecured loan, you don't need to deposit any security or collateral. You do not have to mortgage an asset to avail of the loan.
- ATTRACTIVE INTEREST RATES- The interest rates in a personal loan are affordable and reasonable. The interest rates provided with a personal loan are really low and thus, the value of the monthly installment will be low too. It will be beneficial for the borrower to opt for a personal loan. Some of the banks provide a really easy procedure to apply and at reasonable interest rates. Indian Overseas Bank Personal Loan provides an easy and simple procedure for the convenience of the customer.
THINGS YOU NEED TO TAKE CARE OF WHILE AVAILING A PERSONAL LOAN: - You need to fulfill the personal loan eligibility if you are planning to avail a personal loan. If you want to apply for a personal loan, then here are some of the important things that you need to take care of: -
- Check your credit score: - The credit score or the CIBIL score of a person determines the creditworthiness of the person. It means that the credit score tells the lender how the borrower has managed all the credits and the debts in the past. An ideal credit score that a borrower should have is around 750. If you have a lower credit score, your loan application may not be approved by the bank or the lender.
- Compare lenders to get the best offer: - You need to do research on all the important factors before applying for a loan, and even a little research will provide you great help. As a newcomer or a borrower, you need to research and compare different loans that are offered by different banks. By following this step, you will be able to check the various features and benefits provided by different banks and at last, can choose the one which is the most suitable for you.
- Check your eligibility- After checking all the important aspects of the loan and choosing the bank in which you want to apply for a loan, the next step is to check the eligibility. If you are able to fulfill the criteria of eligibility, then only you can apply for a loan in that bank. The eligibility criteria differ from bank to bank and from lender to lender. It is provided online on the website of banks.
- Look for seasonal offers- You can try to look for the offers. Various banks and money lenders provide different offers to attract customers and inform the customers about the same via SMS or calls or emails. You can check that as it will be beneficial for you.
- Qualify based on your relevant qualifications: - If you work for a reputable public or private sector organization or earn a significant income, you are a reliable candidate in the eyes of the creditor. As an outcome, you may utilize your professional credentials to your advantage in negotiating a reduced interest rate. If the reputation of your firm is good, or the company is important, then it can really help you to avail a personal loan. You can also get a lower interest rate. This is because of the reason that the lender will be assured that you have the financial ability to make the monthly EMIs.
CONCLUSION: -
If you want to apply for a personal loan, you need to make sure that you are eligible for that loan. You need to check the eligibility criteria and the other vital aspects. Try to compare at least five different banks and then opt for the one which you find is the most suitable.
Also read this: Various Benefits Of The Personal Loan