The financing landscape has changed drastically in the past few years. Today, you have a host of options to meet your financial obligations. These options are available across unsecured and secured funding arrangements. Nevertheless, your choice of the loan and lender depends on the purpose you are seeking the finance for. However, if there is one loan option that can fit all your requirements, then it has to be personal loans. You can avail an instant personal loan just by downloading the best loan app.
While ease of access is one factor that makes personal loan a preferred choice, there are several other facets to consider. A personal loan is an unsecured loan, which means you can avail this loan without submitting any collateral. In addition to that, online loans seek minimal eligibility and simplified paperwork. It also offers you the freedom of unrestricted end use. This means you can use the loan amount as you wish!
Read on to know more about the factors that makes a personal loan the best choice.
Is personal loan the best choice for financing?
Collateral-free financing
A personal loan is an unsecured loan. That means it has the option of zero collateral. This makes these loans accessible to those who do not possess any valuables to pledge. This also simplifies the paperwork needed for applying the loan and makes the loan approval process much faster.
Loan amount of high value
These advances also come with high-value financing, which is suitable for meeting a range of big-ticket expenses. When you apply for a quick loan through the best loan app, you can easily secure financing of up to Rs.1.5 Lakh to. For higher value loans, you can approach your bank or other non-banking financial institute. However, do note that the maximum loan amount that you can avail depends on your loan eligibility.
Easy online availability
With online loans, availing a personal loan has become easier than ever.You can also download the best loan appand apply for the loan in a few taps.The online platforms offer great user-interface and robotic customer support. Since, the entire process is digitalized these loans can be processed much quickly.
Flexible tenure for repayment
An online loan also comes with tenure flexibility. This allows you to choose a suitable term for repayment of the loan. Depending on your repayment affordability, you can choose tenureranging from 12 months to 60 months. When selecting the tenure, use a personal loan EMI calculator. This is a free financial tool that can help you choose the best loan tenure.
Quick approval and disbursal
If you have fulfilled all eligibility requirements cited by the lender, your loan application is likely to receive instant approval. The best loan apps offer approvals within a few minutes of submission. Post approval, the loan amount is disbursed to your bank account within the next 24 to 48 hours. This makes the loan suitable for emergency financing.
Simple eligibility requirements
Since personal loans are unsecured loans, lenders need you to meet a few eligibility criteria. Thankfully, with most lenders these eligibility criteria are very simple to meet. These criteria usually relate to their age, income, current debts, and your credit score.
Minimum documentation
When applying for a personal loan, you need to submit a few documents as requested by the lender. Most of the times, lenders will ask you to submit your identity proof, address proof and income proof. If you apply for an online loan, then you can submit all these documents online. There is no need to physically submit multiple copies of print outs.
Unrestricted end use
One of the best features about a personal loan is the unrestricted end-use. This means you can use the loan amount for all or any purposes. You do not need to give the lender a breakdown of your budget nor proof of your expenses. You can use this loan amount for any purpose you deem fit.
Repayment in easy EMIs
With online loans, repayment is made easy with a fixed EMI scheduled on a fixed date. The interest rates on personal loan EMIs is much more affordable than credit card EMIs. The online loan EMI calculator allows you to calculate the exact EMI payable before applying for the loan. Choosing an EMI that fits into your budget makes repayment a smooth journey.
Affordable rates of interest and charges
At last, online loans are highly affordable. You can avail them at attractive rates of interest by applying through the best loan apps. You can further negotiate this interest rate if you have a great borrowing profile. There are several tips that can help you get a personal loan at the lowest interest rate. Other fees and charges levied on these advances are set at nominal rates as well.
Conclusion
With these many benefits, a personal loan is sure the best choice when it comes to instant financing. An online loan also opens up the opportunity to improve your credit score. However, you must conduct a thorough research to choose the best lending partner. Also, make sure you meet all the eligibility requirements laid down by your lender before applying for the loan.