Hela June 7, 2019

Know How a Personal Loan Can Help You Save MoneyNew Delhi: A personal loan is a multipurpose loan that an individual avails either from a bank or NBFC to meet his personal needs. This collateral- free loan is not dedicated to a specific purpose like a home loan or an education loan and can be used to deal with different situations like a wedding, home renovation, vacation, medical emergency, purchasing a gadget, etc.

What Are the Features of a Personal Loan?

Lately, personal loans have gained a lot of popularity and are a first choice for many when it comes to dealing with any financial crises. The prime features of a personal loan are:

    • Quick approval: Gone are the days when applying for a personal loan was a huge task as it involved visiting the bank and submitting a long list of documents. Due to digitalization, the process of applying and availing a personal loan has gone online. This online process allows almost instant approval and disbursal of a personal loan. Today, a personal loan is disbursed by most banks and financial institutions within 3 to 5 days.

    • Attractive interest rates: A personal loan is offered by many banks at an interest rate starting from 10.99%. The interest rate may vary according to an individual’s profile and is influenced by various factors like a person’s credit score, age, employment, repayment history, etc. It is advisable to look for personal loan offers from various banks and go for the one offering lowest interest rate.

    • High loan amount: Some banks and NBFCs offer a personal loan of amount as high as Rs. 25 lakh. If you meet the eligibility criteria and submit the necessary documents, you get approved for such a huge amount.

    • Minimum documentation: Availing a personal loan online requires minimum documentation, which can be uploaded online from the comfort of your home saving your time and money.

    • Flexible tenure: The tenure for a personal loan varies from 1 to 5 years, which can be decided by you as per your repayment ability and convenience.

How a Personal Loan Can Help You Save Money?

A personal loan not only helps you to deal with unexpected expenses or to fulfill your dreams but it also saves your money in many ways and here is how:

    • Debt Consolidation: A debt consolidation loan is basically a loan that is used to pay off your existing debt. Your existing debts, both loans and credit cards are most likely from different lenders with different repayment monthly dates, loan amounts and interest rates and managing all these debts together can be a big task. The smartest way to deal with such a situation is to take a personal loan with low interest rate and pay off the other debts with high interest. This way, instead of making multiple payments, you will be paying one affordable payment each month.

    • Finance the big expense: If you wish to buy that one expensive thing that you are planning to have since a very long time, a personal loan is the most inexpensive and smartest way to make that purchase. With personal loan, you can finance your purchase more reasonably as compared to a credit card because an interest rate charged on a personal loan is lower as compared to the interest rate on credit card. Also, you can repay the loan with easy EMIs for which the tenure is decided by you.

      Must Read: Personal Loan vs. Credit Card Loan – Which Is A Better Choice

    • Repayment and prepayment: While availing a personal loan, you can choose the desirable tenure as per your current financial situation and can repay the loan without hampering your savings. Also, for all those expecting a promotion or extra source of income in the future, can also apply for a step- up repayment option offered by banks. This way, your EMIs start at a lower amount and then increase with time. Apart from this, you can also foreclose the loan with a nominal foreclosure fee if such an option is available with your lender and can save up on interest money.

How to Get a Personal Loan?

If you wish to avail a personal loan instantly, visit Paisabazaar.com and follow the mentioned steps:

    • Click here.

    • Fill your basic details like desired loan amount, profession, monthly income, current city of residence and mobile number to proceed.

    • Compare personal loan interest rates offered by various banks and NBFCs.

    • Choose the most-suited personal loan and apply for it.

    • You will be contacted shortly and the formalities will start instantly.

Alternatively, you can also avail a personal loan by visiting the lender’s website or app.

The main aim of availing a personal loan is to be debt free without any stress and inconvenience. So, be responsible and do not borrow more than your repayment ability. Avail a personal loan smartly and enjoy the features offered by various banks like high loan amount, flexible tenure, quick disbursal, etc.  (SPONSORED)