Personal loan is a great credit product for individuals seeking a collateral-free loan. Young individuals may not always own properties to mortgage and avail funds. Collateral-free credits such as personal loans become a viable option for them.
The market for personal loan is seeing a positive growth in recent years. Reports show that there has been approximately 27% growth in this type of loan applications. It’s an indication that more lenders are offering attractive deals on personal loans.
What can you achieve with personal loans?
An attractive feature of personal loans is the end-use flexibility of the disbursed amount. Secured credits such as home loans do not come with the flexibility to use the availed sum as per their requirements. A personal loan allows you to use the borrowed sum as per your financial requirements.
The most significant advantage with personal loans is that they do not have any end-use restrictions.
Uses of personal loans –
- To fund medical emergencies
Unfortunate medical conditions that demand expensive treatments can come up anytime. It may become impossible to fund such treatments due to a lack of available funds. A personal loan can fund such expenses.
- Wedding arrangements
Elaborate weddings are characteristic to the Indian demography. Grand arrangements require a lot of funds and numerous expenses. One can easily opt for a personal loan to arrange the necessary funds.
- Home renovation and reconstruction
Home renovations are commonly undertaken projects which too require a substantial amount of immediately available funds. Be it a new coat of paint, or major repair works like flooring, with a personal loan you have the flexibility to renovate your house anyway you like.
- Higher education
Higher education is a guaranteed way to a better future. Parents who desire their children to pursue education at leading institutes can easily benefit from personal loans. Substantial funds available with personal loans from top lenders make these credits a chosen option for students to meet their educational expenses.
Advantages of a personal loan
Unsecured in nature
There is no collateral security necessary for personal loans bajaj finserv specially designed for self-employed or salaried individuals. The lender only checks your capability to repay the debt after considering your income and CIBIL score. A score around or above 750 can suffice to help you through the process. Once the lending institution is assured of your ability to pay back the money, they approve your application.
Flexible tenors
It’s essential that you find the right personal loan tenor that works for you as per your current and future financial requirements. Unsecured credits are short-term advances and come with just as short loan tenors as well. Refer to lenders who are flexible when it comes to choosing your preferred tenor.
Who can be eligible for a personal loan?
Eligibility criteria for personal loan are straight forward –
- Minimum salary requirements.
- Between 23 and 55 years of age.
- Credit score around or above 750.
Personal loans come with no end-use restrictions and can be used to fund any financial exigency. Opt for lenders who offer the most attractive interest rates as well as other beneficial terms to help you repay the loan easily.
Quick disbursal
If a borrower meets all the eligibility criteria and maintains a high credit score, he/she receives an instant approval. Many financial institutions disburse the loan amount within 72 hours of application.
