A coin has two sides. One is heads and the other is tails. Just like a coin, everything that you own, anything that you have, or situations that you face in life every single thing has two different aspects or perspectives. This means that the way you look at a particular thing is one side of what it is and it can have the other side too. Similarly, when you act upon something the outcome can be either positive or it can be negative. One can consider the example of Yin and Yang and how two opposite factors or perspectives fit in and complements each other. This balanced is maintained for and by the universe.
When you move towards getting a loan due to your dire need of funds, you may tend to overlook some points which you are supposed to go through very cautiously. Whether it is the benefits or drawbacks of getting a personal loan, both must be acknowledged with equal sincerity. A personal loan is a collateral-free loan provided by the banks and non-banking financial companies for supporting individuals financially and meeting their personal requirements.
Some good and bad things that an individual must know are:
1. A personal loan is available for you with minimal documentation. Disentangled application and approval process helps in providing the funds to individuals and entities as soon as possible.
2. A personal loan can be used for literally anything. The banks and non-banking financial companies grant this loan for personal needs of an individual with no questions asked.
3. Personal loans are collateral-free loans so; no security has to be pledged to get the loan.
4. Personal loans help individuals with the number of funds they need to satisfy their requirements.
5. A personal loan has a flexible term i.e. the tenure can be selected y the individual or entity based on their repayment capacity.
6. As the personal loans are unsecured the interest rate charged may be slightly high. In the case of a person with a credit score lower than the required limit if the bank then the personal loan interest rate can be even higher.
7. Some hidden charges such as the processing fee, documentation/verification fees, late payment fee, and foreclosure fee are a part of the cost of a personal loan that may get slipped upon.
8. The eligibility crisis for a personal loan is very rigid. The banks and non-banking financial companies are very firm about the criteria.
These points must be a part of the decision you make. As said earlier, both sides of the coin have to be looked at. The benefits of the personal loans come along with certain flaws that the borrower will have to accept.
HDFC personal loan policy can now be availed of online and at an interest rate of 10.75% per annum. Financial decisions must be taken when all facts have been gathered and it should not be an impulse move. Your decision for selecting a personal loan as a source of quick financing has to be based on a rationale.
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