Things to Keep in Mind before Considering a Personal Loan Financing

The pandemic made everyone realise that life is short and fleeting, and we should go after our dreams. Therefore, it is necessary to plan your finances for such a crisis situation.

You might need additional funds to fulfil your dreams, and hence personal finance loans might just be the solution for you.

Reasons to Consider Financing via Personal Loans

  1. No collateral

Providing collateral for a loan always causes a hindrance for a person and eventually leads to an inability to meet their dreams. However, a personal loan is unsecured and gives users the ability to obtain a loan without ANY collateral.

  1. Flexible and easily accessible

Providing collateral-free personal loans with easy EMI payment options make such loans accessible to all sections of society, thereby ensuring everyone can achieve their innate potential. The loan application is processed within 3 minutes and with an instant loan disbursal up to the limits of Rs. 50,000 to Rs. 20 lakhs. These are loans for a period ranging from 1 to 5 years, which are apt to meet your short-term need for funds. These loans also come with a prepayment option and a top-up on the existing loan to ensure you never run out of funds in dire circumstances.

  1. Restructuring existing debt

Small loans can be a great way to restructure all the existing debt. It is convenient to pay off current debt via a personal loan rather than financing all your outstanding debts with other lending instruments (like a credit card).

  1. Unplanned/medical emergency savings

Funding your expenditure with your current savings? Instead, it is advisable to avail of a personal loan to ensure that those saved-up funds come in handy during a rainy day or in case of a medical emergency.

  1. Personal Loan Interest rate

Personal loans offer competitive rates. The current return on investment as of August 8, 2021: 10.75% onwards (fixedinterest rate).

  1. Tax benefit

There is no Income tax payable on receipt of loan funds if it is taken from banks and recognized non-banking financial companies as supposed to loans from unrecognized sources and relatives, which may be subject to tax liabilities. Interest payment subject to certain conditions is deductible from the income of the current year.

The Application Process For a Personal Loan Online

Get an instant personal loan online by following three easy steps:

  • Step 1: Provide your basic details (viz. name, PAN, and Aadhar).
  • Step 2: Ascertain if you are eligible to get a personal loan and determine your EMI based on your loan specifics using the personal loan EMI calculator online.
  • Step 3: Furnish the necessary documents such as your income and employment details and residential proof.

Recommendation

A personal loan can be used for anything; there are no restrictions on the use of the loan, and this flexibility provides numerous tax benefits as well. Considering the dynamic nature of these loans, you can surely achieve what you have set your eyes on with the backing of such personal loans.


Natraj

Natraj Studied bachelor's degree in finance and business from Telangana University, Nizamabad. A Writer based In India, He has a degree in Charted Accounts and has very knowledgeable in credit repair and Banking Sectors. So, I decided to start a blog and share my knowledge to the visitors.

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