Personal loans are a reliable source of extra income other than the recurring monthly salaries that employees get every month. Hence, almost everyone has a knack for personal loans. People who claim to hate competitions aren’t humans in the first place. Sure, the entire fuss about whose first and who’s last is a little annoying. Competitions are great when it comes to preparations. To spend days and nights chasing a goal.
Comparison and competitions are what keeps us going. If we never compare ourselves to America, we would never aim to become a developed nation. Hence, comparison is very important when it comes to growth. An individual compares different policies in order to choose one perfect policy for him/her. Finances and banking decisions cannot be made without comparing various features and characteristics.
All of us know that personal loans are the most preferable option over any other option in the unsecured type of loan.
In this blog, we’re going to see 3 competitive edges of personal loans. Shall we?
Lower interest rates
Credit cards begin with a 40% interest rate over the expenses and on the contrary, personal loans begin with a 10 or 15% personal loan interest rate. Even though everyone uses a credit card and it is one of the easiest ways of payment, it has its cons later. The amount spent on credit has to be paid within 30 days of the purchase period. Credit card purchases charge higher interests without consulting the customer first. On the other hand, personal loans don’t charge higher interests. In fact, they don’t even need you to pay those interests within 30 days. The time period can range from 3 months to an entire year.
Not a lot of extra fees
Some banks don’t charge you a late fee when you delay the repayment of your personal loan interest rates. Though, counter to this, credit cards always charge you a late fee or a penalty when you delay paying the interest rates. Personal loan interest rates are fixed and hence there is no additional expense over it, but it is the exact opposite when it comes to credit cards. Credit card has a certain limit, but the limit can be easily extended, and then you would have to face some additional fees.
Personal loans for big expenses
The credit card shouldn’t be used for the bigger expenses and the interest keeps piling up over it. Later, it can be very difficult to pay the interest off as it keeps adding in direct proportion to your expenses. Whereas the amount that comes from a personal loan is big, and it can easily be used to pay for big expenses. You can easily repay off the debts from a personal loan, or buy anything from it and you wouldn’t have to pay interest for the commodity in its individuality. You have to pay the interest only on the loan amount.
These were 3 competitive edges that make personal loans a better catch over other alternatives of unsecured loans. Banks like Bandhan bank personal loan offer both credit cards and loans. Their personal loan eligibility criteria are easy to fulfill as well. Therefore, personal loans are better preferred than credit cards
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