A personal loan can help you if you have an urgent cash crunch; sometimes it helps you in a medical emergency, funding a vacation or quick cash for marriage or something else like this. A personal loan can be helpful in such case.
The good thing about a personal loan is, one can spend the money the way they want. Suppose if you are buying a new home then you need to apply for home loan and that landed money will be used in paying your money for the house you bought. But this is not in this case of a personal loan. But the question is why you should go for a personal loan? Here in this article, we will discuss some good reason to go for a personal loan.
Why should you go for Personal Loan?
No questions asked about the end use of the money
Bank will merely offer the cash to the borrower, and it’s up to the borrower where he should use or how he should spend that money. Sometimes in a medical emergency or critical financial condition, this personal loan is timely help for the needed one.
No Need for collateral or guarantors
Your credit score can help you to get the personal loan from a bank. Bank will check your income & expenditure pattern and based on your spending or saving behavior; a personal loan can be offered or approved. It can be accepted quickly; you have a good credit score. It proves the bank how responsible borrower you are.
Another good thing about the personal loan is that bank requires no collateral, security or even guarantors to approve you for your loan application. So it will ultimately save a lot of hassles for the borrowers.
Most of the bank can offer personal loan for one year to 60 months tenure. You can select your loan EMI tenure yourself at the time of applying for personal loan. However you can change it after getting approved too, but you need to check this thing with your bank. Their repayment schedule and such criteria may vary from bank to bank.
You should confirm your EMI, Loan tenure and loan interest on your loan with your lender. Because it varies from bank to bank and you can compare it by having those data from multiple banks.
For personal loans, you don't need any collateral, security or even guarantor. All you need is your income proof, proof of identity and evidence resident will suffice in most of the cases. Unlike a collateral loan, Home loan or any other type of loans, a personal loan requires very less documentation.
We have discussed everything you need to know about personal loans including advantages, but there is some drawback of personal loans too. Such as,
• High-interest rates
• Not available to everyone
• No part prepayments
Here in this article, we have discussed why you should go for personal loan and some drawback of personal loan. Have you ever applied for a personal loan? Was it easy to get approval? Share your comments below.
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