Personal loans are without doubt one of the most popular financial products in the market today. Versatile, easy to avail, and collateral-free, personal loans are loaded with a plethora of benefits and features.
Curious to know more? We have curated the top 10 advantages of personal loans for you. Read on to know more about this.
10 Benefits of Personal Loans
The general guideline is that if you need financial assistance for home construction or renovation, you will generally opt for a home loan and similarly for auto loans to buy a vehicle. But what if there was one loan that could provide the benefits of many? That’s right, personal loans are extremely versatile.
Unlike home loans, auto loans, or education loans, personal loans do not have to be used for a specific purpose. From medical emergencies to home renovations to car purchase to even funding a vacation, personal loans can be used for almost everything.
2. No Collateral
Most types of loans require security or collateral and until the loan has been repaid, the asset in question will belong to the lender. However, Instant personal loans do not require any form of collateral or security making it easier for borrowers to avail them.
3. Rapid Disbursal
Loans generally take a few days to get disbursed to the borrower’s account and this is after running around trying to get the documents in place and getting approval for the loan.
However in cases of emergencies, this is not ideal. Personal loans on the other hand, especially from online loan providers such as Money View can be availed within just 24 hours of loan approval.
4. Competitive Rate of Interest
If there is one factor that applicants look at while availing a loan, it is the rate of interest. Interest rate on a loan determines the EMI amount to be paid every month.
Although personal loans are not secured, the interest rate is quite competitive. However, borrowers must know that the rate
of interest imposed depends on a number of factors such as their credit score, amount borrowed, repayment tenure, etc.
5. Improve Credit Score
Your credit score is perhaps the most decisive factor in determining your loan eligibility. Most lenders ask for credit scores of over 700 (CIBIL or Experian) before providing the loan.
However, maintaining a credit score is not always easy and sometimes mistakes can happen. In such cases availing a personal loan and repaying it on time can help you increase your credit score easily.
6. Flexible Repayment Options
The repayment tenure for any loan determines the EMI amount that the borrower has to pay and can vary between a few months to a few years.
Longer the term, easier is the repayment as the EMI amount will be less but in this case the interest amount paid over time will be higher.
Flexible repayment options allow the borrower to plan and adjust the EMI amount based on his/her finances. Personal loans offer this flexibility making it an ideal option for borrowers.
7. Minimal Documentation
Gone are the days when one had to provide multiple documents just to avail a loan. Today, thanks to online personal loans, applicants will only have to provide their ID proof, address proof, and income proof. The best part? Everything can be submitted online making the entire process hassle-free and quick.
8. Quick Eligibility Check
What if you could check your loan eligibility within just 2 minutes? No more waiting for days to get a response from the lender or submitting multiple documents for the same.
Online personal loans now come with a quick eligibility check that can help you plan out your finances better too.
9. Help with Debt Consolidation
Are you struggling with tracking and maintaining multiple debts? Missing even a single EMI payment can have a significant effect on your credit score.
These problems can be eliminated by consolidating all of your debts and paying them off with a personal loan. Not only does it make the repayment process easier, you will also have monetary help to pay off the entire debt in one go.
10. Safe and Secure
Applying for loans by traveling to the loan provider, carrying physical copies of documents is a process that is prone to risks. Thankfully, borrowers no longer have to worry about this.
State-of-the-art technology and encryption ensures that the entire process from application to disbursement is safe and secure.
Imagine availing a loan that is versatile, affordable, and helps to increase your credit score. These are just a few of the advantages that personal loans offer. Borrowers can enjoy the benefits of a flexible repayment tenure, minimal documentation, and a hassle-free personal loan application process making personal loans one of the most availed financial products in the market today.
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The best part is that all of the above benefits can be found in Money View instant personal loans. These loans are not only easy to avail but are disbursed within just 24 hours of application approval. Visit the Money View website or download the app today.