Personal loans are unsecured forms of loans that are used to meet immediate financial requirements. It is a multi-purpose loan, can be used for various purposes such as marriage/wedding, renovation of home, etc. There is no restriction for the amount to be borrowed and can be used for any purpose. A personal loan can afford a temporary financial crisis.
If you go for a personal loan these are the benefits you should know before availing it:
BENEFITS OF A PERSONAL LOAN:
Multi-purpose in nature:
It is multi-purpose in nature. A personal loan can be used for anything other than investing the amount in any other illegal activity. Other forms of loan are taken for a specific purpose and can only be used for that purpose only, for example - a home loan. Whereas a personal loan is not like that.
Financing up to 25 lakhs: A personal loan can provide financing up to Rs.25 lakhs. The sanctioned amount can be utilized for any purpose.
Collateral is not required
: A personal loan is an unsecured loan as no collateral is needed. The borrower does not need to pledge any collateral for the personal loan. If the borrower meets the eligibility criteria, the borrower can get a low-interest rate.
Minimum documentation required:
As the world is now digitized, the process of paper works and documentation has been reduced.
Faster processing time for the approval of the loan:
If the borrower’s application has been verified and evaluated for the loan, the loan amount will be sanctioned within one or two days and that depends on the bank/financial organizations. The borrower can get personal loans quickly and easily in the approval of loans. This serves best in times of emergency to meet a sudden financial crisis.
The borrower has the freedom to choose the tenure of the:
This main advantage of personal loans is what attracts people for personal loans as they can choose the tenure depending upon the capability of the individual. repaying the amount.
Pocket-friendly repayment : The borrower can pay off the amount in easy installments or EMIs. To know how much amount the borrower needs to pay per month, it can be calculated by a Personal Loan Calculator.
The above listed are the benefits of the Personal Loan and these attract people to go with personal loans when compared with others.
There are even factors that can affect the interest rate of your loan:
Income Factor : It is the first and foremost thing that decides when the borrower applies for a personal loan. The more income the borrower has, the rate of interest will be lower. That is the income factor and the interest rates are directly proportional.
Company Status : It is the second foremost thing that decides the interest rate, as a personal loan is an unsecured loan, it’s not easy for the lenders to trust the borrower and they look after different parameters to gain trust in the borrower and company status is one among them.
Relationship between the borrower and the bank:
If the borrower has a saving account or salary account at their respective bank is more likely to offer at special rates.
Yes Bank Personal Loan offers customers ranging from amount one lakh to forty lakh at attractive interest rates at different tenures ranging from twelve to sixty months. They offer several features and benefits of personal loans offered by the bank, due to which they continue to be the first choice of customers. Customers can easily apply for a personal loan using the bank’s online service, which is quick, easily understandable, and requires basic documentation.
YES Bank offers a variety of personal loans to make the special occasions a little special extra with extra funding and they are:
Yes Bank's loan for holiday.
Yes Bank's loan for wedding.
Yes Bank's loan for home renovation.
Conclusion : Whatever may be the purpose of the loan, they have several options available in a personal loan. Before applying for a personal loan know the interest rates offered by different banks. There is usually no collateral, it’s a less risky form of financing than other unsecured and secured loans.