Personal loans have become quite popular in the segment of household financing typically for their ease of availability. These advances come with zero restrictions to end-use which make them suitable for funding all types of expenses, be it personal or professional. Availing the advance is further simplified with its easy availability online. When borrowing, you must know how much to avail and cross-check it with your financial standing, which should easily accommodate the total repayment liability over the tenure and EMIs from the monthly income.
Several financial institutions today provide these advances, which leaves a borrower with ample options for lender selection. It thus becomes all the more crucial to know available best features in the market that come with these loans. Below are listed some of them to help with an easy financing decision.
High-value Funding up to Rs.25 Lakh
Reputed lending institutions provide financing of up to Rs.25 Lakh as personal loans to eligible candidates. Such a high-value financing makes it easy for borrowers to meet their big-ticket expenditures with ease. From paying for children’s higher education to meeting wedding expenses, medical emergencies, and travelling overseas, these advances are available for all purposes.
Their restriction-free usage allows them to be utilised for professional expenses of high quantum as well, such as expansion of business, new asset purchase, working cappital addition, and the likes.
One of the best features of personal advances is that they are collateral-free financing options. Availing them, a borrower thus does not need to risk any personal asset for the purpose of raising funding. All one needs to do is meet a handful of eligibility requirements and submit the required documents. As a high creditworthiness is a necessity for availing a personal advance, check whether your credit score stands above 700 or not before applying. If not, take necessary measures for its improvement at least 6 months before borrowing.
Tenure Flexibility of up to 5 Years
Once you have availed the advance, you can make repayment of the total loan liability over a long tenure of 5 years. You thus get pay in easy EMIs distributed over up to 60 months, which makes loan repayment quire affordable too. Make sure to check your EMI affordability with the help of a personal loan EMI calculator before applying.
Attractive Rates of Interest
Another high point to look forward to when seeking these advances is the interest rate. Even though the unsecured nature of these loans make them a tad costlier than secured advances, you can always secure a low personal loan rate of interest with a few things in mind. For instance, make sure to compare lending institutions and apply with all eligibility and income documents to secure the best rates.
These loans come with pre-approved financing options as well with select lenders. These are special offers for existing customers, which make loan availability, including processing, approval, and disbursal, fast. A borrower can thus save valuable time and easily fulfil emergency funding needs when applying with a pre-approved offer in place.
When repaying a personal loan, a borrower can choose to prepay the advance before the tenure’s end through a lump sum payment. This can help save significantly on the repayment liability through interest deduction for the discounted tenure as per the lump sum payment made.
Even though these aspects make a personal loan a must-have financing option, it is ideal to borrow the advance only when needed. Also, check if you meet all eligibility requirements from your lender or not before borrowing so that the loan approval comes by easily with minimum time involved.