The post pandemic effect had major consequences on the livelihood of people across the globe, especially in terms of finances. This big wave of financial crisis disrupted life in different ways for most people, some lost their jobs or experienced pay cuts. In such times, it is natural to dip into your savings or investments to fill in the financial gap, but that may not always be feasible. This is where a personal loan can be of help. Being an unsecured type of loan a personal loan is the ideal choice for loans without security. Let’s have a look at other reasons how an instant loan may be a useful solution to manage your finances.
- Personal loans do not require Collateral as Security
Unlike a secured loan where you have to pledge your asset like gold or property with the lender as security. An unsecured loan does not require you to pledge any of your valuable assets as collateral. Hence, you can save the hassle of paperwork for the loan, as well as the time taken to approve your loan application. Make sure you have a good credit score as the lender will consider other factors like your credit score to determine your creditworthiness for a loan. Having a good credit score will help speed up your loan process so you can get low rates on your loan.
- Seamless Online Application
With advancements in technology, it is now possible to get a personal loan without the need for any physical paperwork submissions. As everything is done online, you can simply scan the documents and submit it along with the online application form. Nowadays there are lenders that allow loan applications with just an aadhar card. You can get a aadhar card loan easily through the company’s loan app or online website. Numerous banks and lending institutions have their own loan apps where you can manage your finances and track the status of your loan through your smartphone online.
- Quick Disbursal of Loan without Hassles
To get your loan approved you first have to make sure you fulfill the eligibility criteria and have a good CIBIL Score. After submitting your instant personal loan application your documents undergo a verification process where the lender runs a check on your credit history, income, employment, etc. Once the lender is satisfied with your repayment capacity, your loan gets approved and the loan amount gets disbursed on the same day. The quick application and verification process makes it an ideal choice when you need money for financial or medical emergencies.
- No Restrictions on the Usage of Loan Amount
A personal loan is different from the other loans that are used for specific purposes like a car loan or a home loan. When you take a loan you are not required to provide a reason to acquire the loan. The loan funds can be used for all kinds of financial requirements. The lenders generally don’t have any restrictions on the end usage of the loan money, unless and until you are using it for legal purchases or activities. You have the complete freedom of using the funds for your trip abroad, wedding expenses, buying business machinery or even expensive furniture for your home.
- Flexible Repayment Tenure on Loan
You can choose to use the most appropriate repayment plan on your loan on the basis of your current and foreseeable financial status to enhance your savings. If you’re expecting your financial situation to get better in the near future, due to a promotion or a yearly bonus, for example, you can opt for the step-up loan repayment option. The EMI (Equally Monthly Installments) scheme starts off at a low rate of interest that gradually increases over time. Bajaj Finserv, for instance, offers repayment tenures of 12 to 60 months, along with interesting features like the Flexi Hybrid loan facility that can help you reduce your EMIs by 45%*. In a flexi hy loan you can pay just the interest amount as EMIs for the initial period of the loan. Interest is levied only on the loan amount you are actively utilising and not on the total loan amount. Also, you get the flexibility to withdraw funds from your total sanction whenever you require the money and make part payment towards the loan as per your convenience.
Before you apply for an instant personal loan ensure that you do your research and compare all the offers from different lenders and choose the best as per your requirements. With all the perks of a personal loan you can make use of the loan for your financial needs with ease. So, if you find yourself in need of quick financing, a personal loan could well be the ideal choice for you.