Loans have become the easiest route to fulfilling people’s dreams. Expenditures like children’s education, home renovation, or a vacation abroad all call for a sizeable investment. Many time only savings are not enough. This is where personal loans come in handy. Personal loans are unsecured loans. Hence, you do not have to pledge anything to take one. In fact, you can get an instant personal loan by submitting only a few documents. What’s more? The loan approval process is smooth and fast compared to other types of loans.
Personal loans do not have very high-interest rates. This makes them affordable and the repayment journey painless. Equated monthly installments (EMIs) are low and the tenor is longer. You can bring down the EMI further by extending the tenor. For example, say, you have taken a loan of Rs.5 lakh at an interest rate of 13% for two years. The EMI for this would stand at Rs.23,771. If you extend the tenor by another year, the EMI would be down to Rs.16,847.
Advantages of Personal Loan
No restriction on spending
The greatest benefit of personal loans is that they can be used for any purpose. Be it a medical emergency or immediate cash requirement, a personal loan is the easiest way to get funds.
Fixed-rate of interest
Unlike home loans, personal loans usually have a fixed rate of interest. You do not have to worry when the market interest rate rises. Your EMI remains the same throughout the tenor.
In some cases, personal loans also have tax benefits. For example, to make the down payment for a house or for construction and renovation of your current home, you can avail tax deduction of up to Rs.2 lakh on the interest paid. This comes under Section 24B of the Income Tax Act for the interesting part. Do remember to provide enough evidence regarding the expenses when you file your claim.
How Can You Avail an Instant Personal Loan?
Personal loans are available with banks and non-banking financial companies (NBFCs). Lenders usually offer this loan only if you meet their eligibility criteria. For example, most lenders offer personal loans to a salaried individual working in private or public companies. Those who are self-employed or run their own business may have to meet further requirements.
Like any other loan, you have to meet the minimum salary requirement. This is usually pre-set by the lender. Also, you should fall under a certain age range to qualify. Use a personal loan eligibility calculator to check your eligibility to avoid any surprises.
Do keep in mind that this kind of loan needs a good credit score. A poor credit history may lead to rejection of your loan application. So, check your credit score beforehand and try to clear existing loans, if any, before seeking a new loan.
How Long Does it Take To Get a Loan?
The approval for a personal loan is faster than other loans. The fewer number of documents contributes to the quick verification process. Normally, personal loans are disbursed within two to five days of document submission. If you are looking for personal loans, apply on the lender’s website to further reduce the time taken.
How Are Some Lenders Able to Offer Loans Quickly?
Nowadays, lenders use different methods and technologies to process loans efficiently. For example, lenders check your credit history online. Thus, it takes less time to shortlist those who fulfill the personal loan eligibility criteria. This online process also helps to process more loans in a single day. NBFCs take even lesser time to process a personal loan application. For instance, NBFCs such as Bajaj Finserv offer instant approval on personal loans. It just takes 24 hours to get the funds in your bank account.
If you are looking for a personal loan with minimum time, consider taking an instant personal loan. NBFCs such as Bajaj Finserv provide pre-approved offers for personal loans and other financial products. This simplifies the loan availing process and saves time. Key in a few basic details and check out your pre-approved offer.