As the name suggests personal loans are taken for one’s needs or to fulfill one’s desire. When an individual happens to be quarreling with one’s bread and butter, he or she can seek help from loan lenders and apply for a personal loan.
Personal loans have many uses, some of them can be as mentioned below:
Conducting marriage: Marriage is one of the most important life events of every individual, as glamorous as the outside looks, the effort, the fund which goes into one is enormous. A personal loan helps to fund this.
Educational purpose: Being educated is one of the most important necessities while living in this generation. Literate people are only given job offers.
House expenses: Housing loans help you buy a house, but when it comes to home renovation, repair, buying furniture, etc, a house loan doesn’t help you with that.
Personal loan as a debt consolidator
Personal loans are known for their wide usage. These are mostly unsecured forms of a loan, i.e. one need not give collateral to the giver as a guarantee for the money given. Debts can clutter fast, the less you care about them, the denser it gets. Paying back the repayment of the loan regardless of the loan type, one should maintain a running balance between the repayment. A personal loan can be used as a consolidator for paying the debt, as you can simply take the fund and pay.
Some of the reasons why a personal loan can be used to pay other debt :
Single EMI payment
If multiple EMI payments are not regularly monitored then it can become a hassle. And when it does - it may affect the credit score and the relationship between the loan giver and the borrower. By choosing a personal loan, this problem can be removed as PL has a single EMI payment and thus it comes hassle-free.
Lower interest rate
Among all the loans, a personal loan has a lower rate of interest while comparing with others. If you already have a loan taken, then you might notice that the current rate of interest is higher than the rate of a personal loan. Indian bank personal loan also provides good interest rates.
Fixed payment tenure
As they provide a fixed tenure to pay back the amount. This tenure is usually 6 months -1 year. As people know how many months they have to pay, they can use this opportunity to prepare money for the next month.
Some of the features and benefits of using a personal loan as a loan consolidator can be :
Timely approval
As the process itself is simple, a personal loan can be approved by a company within a few hours.
Quick disbursal of fund
As soon as the company approves the personal loan application, one will receive the funds immediately.
No security/collateral needed
A personal loan is an unsecured loan where you don’t have to submit any kind of property, asset, car, etc to get the requested money. Instead, the company only lends money to those people who have a credit score of 750 or above.
Flexible
A personal loan payment is flexible as you can pay the amount within a period of 1- 5year, according to the ability. The amount of money to be paid per month can also be decided.
Payment facility
The personal loan payment is flexible as you can pay the amount within a period of 1- 5year, according to the ability. One can choose to pre-pay the amount during the loan tenure.
Conclusion: Single EMI payment, Payment facility, Flexible, No security/collateral needed, Fixed payment tenure, Timely approval, Lower interest rate are some of the reasons why people choose the personal loan to pay.
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