Why people think Personal Loan is a good idea?

Every time you think you are in a urgent need of loan, and find no around to lend you that sum, the first thing that comes to your mind is Personal Loans. There are many uses of Personal Loans for which you can refer uses of Personal Loans.

The most basic idea behind having a Personal loan is that it is approved in no more time, since it is an unsecured form of loan. It does not require any verification or authentication in form of mortgage papers or any other collateral. Obviously, the interest rates associated are more than normal collateral mortgage loan, and it is given for smaller amounts up to 5-8 lakhs at once.

 

The second factor is that Personal loans have lesser interest rates than credit cards loan and repayments, hence for paying your credit card bills, you can get an instant approved Personal loan or else you end up paying higher interest rates than the bills. Due to such a high competition between the loan providers, customers get the benefit of some special deals such as some part of interest is cash backed, fixed interest rates for the whole tenure and others.

The short term funding can be fulfilled by this and you get lot of flexibility in terms of how you want to spend this loan like holidays planning, medical treatments, home renovation or any unexpected emergency and other needs. As long as you are sure about repaying its EMI’s, there is as such no problem associated with taking a Personal Loan.  

5 Uses of Personal Loans

The most easily available loan now days are the Personal Loans. Almost every bank funds extensively for these loans since the loan amount is not so much high and generally vary between 1 to 15 lakhs, and interest rates are higher between 14 to 18%. 

The tenure for which Personal Loan is provided is also short, a maximum of 3-4 years and hence this is the product that is rendered a speedy express approval like in 4-5 days, it is approved. It is said as the unsecured collateral type of loan, since no guarantor is required for taking Personal Loans. 

The several uses of Personal Loans are:

1.  Debt Clear: Most of the people take Personal Loans to instantly pay off any debts instantly. Due to other expenses, sometimes your temporarily debts you are not able to pay off so it is better to take a Personal Loan, and clear your other dues, such as credit card bills. Credit cards have higher interest rates than Personal Loan.
2.  For Education purposes:Sometimes, if you are pursuing a private course, you are not eligible for an Education loan due to many constraints of percentages, college fees and others. So, in such cases, Personal Loans are a rescue for buying costly study material. 
3. Medical Expenses: Treat your loved ones without thinking of expenses. Personal Loan are instantly approved for emergency medical treatments like surgery etc.
4. Purchasing old vehicles: Car Loans or vehicle loans are not financed for buying an old vehicle, so you can have a Personal Loan for this.
5. Holiday Planning: You work hard enough but not get so much to save and plan a holiday trip. So, take a Personal Loan and go for a holiday with your family and enjoy for some time.

Personal Loans are not early planned loans, and can be needed instantly, and therefore provided in express time limits. There are various public and private personal loan providers for this scheme.