With instant approvals and speedy disbursals, a Personal Loan works like a line of credit available on demand. And with attractive interest rates on offer, many people are turning to them to meet expenses related to medical emergencies, weddings, and more.
No matter how prudent you are with your finances, life can throw up a situation when you need funds urgently – Perhaps you have to meet the medical expenses for a loved one, or renovate your home.
Uncertainty is a part of life. And while it may be impossible to plan for all unexpected expenses, you will see that a Personal Loan can be a more than handy tool in meeting these expenses.
A Personal Loan works like a line of credit available on demand, a kind of financing that requires no collateral or guarantor. If the lender finds you worthy of credit, a Personal Loan can be approved in a matter of minutes.
A practical financial solution
Some banks and non-banking financial companies, such as Bajaj Finserv, offer Personal Loans of up to Rs.25 lakh with disbursal in as little as 72 hours. This means that a Personal Loan can be of assistance in any of the following circumstances:
• Manage unexpected health expenses:If a close family member needs urgent medical attention, a Personal Loan can be useful in covering costs that your insurance may not. Simply apply for a Personal Loan and breathe easy.
• Plan your dream wedding: Are you planning a wedding for a loved one? There is always something more that you can do to make it an even more memorable event. Consider a Personal Loan to make the ceremony, the wedding of your dreams.
• Take a much-needed vacation: Life’sresponsibilitiesmaymake it difficult to save money for the things you really want to do – like travel the world or pursue a hobby. Why put your wishes on hold? Opt for a Personal Loan and take that holiday you’ve been wanting to for so long.
• Renovate your home: Do you want to convert your storage room into a study? Or maybe you want to update the furniture in your living room. Manage your home renovation expenses with a Personal Loan and repay the expenses in convenient EMIs.
The Personal Loan application process
Getting your Personal Loan application approved is not difficult. But you should do some basic preparations before applying for one.
And that’s not all. There are other factors at play when it comes to your Personal Loan application.
Eligibility:Check if you are eligible for the loan that interests you.You can easily use an online loan eligibility calculator to check this. Simply fill in your name, your financial information and your place of residence to find out the loan amount you are eligible for. You may also use these calculators to check what kind of monthly instalments you can expect to pay.
CIBIL score: It is also important that you get your CIBIL score in order. For instance,a CIBIL score of atleast 750 is necessary for a smooth approval of your loan application.This is out of a maximum score of 900. A good CIBIL score is anindicator of how worthy you are of getting credit.Rate of interest: Lendersmay put out attractive advertisements to lure you into choosing their product. But it makes sense to compare the various features of different loan products before you select the one you like.Have a repayment plan in place: This is the thumb rule for getting any line of credit. Before taking a Personal Loan, see that your cash flow is enough. This will help you make the scheduled repayments each month. Include the Personal Loanrepayment schedule in your monthly budget. And then make sure that you do not skip a single repayment. Missing or delaying the repayment of your Personal Loan will bring down your credit score.It may also jeopardise your chances of getting credit in future.
Once you follow the above given tips, getting a Personal Loan would be very easy. Here’s how you can apply for a Personal Loan .
A Personal Loan can be one of the most useful financial tools when it comes to meeting your goals. But it is also important to do your research before you select the one that suits you best. Traditional banks may be the first names that you think of when it comes to lending, but choosing an NBFC may help you get a better interest rate or a more convenient tenure.