Top 5 Benefits of Personal Loans
Versatile, easy to avail, hassle-free application process - there are numerous advantages of personal loans. A personal loan is a great way to finance your emergency requirements. Be it an unplanned medical condition or a big-ticket purchase, a personal loan can finance all these requirements.
Top Advantages of Personal Loans
Let’s take a look at some of the top benefits of personal loans -
1. Quick Approval
By quick, we mean within 24 hours in most cases!
- As compared to 3-4 weeks for home loan processing, a personal loan takes much less time. As a result, they are the best bet for meeting your urgent cash or payment needs.
- If your credit history is strong (CIBIL score of more than 750+) then lenders will not have a problem approving your personal loan application.
2. No Need for a Collateral
Personal loans are unsecured which means that you don’t have to provide collateral to avail them. This is why it is easier to avail personal loans as compared to other loans such as home loans, auto loans, etc.
- However, as a customer you must note that unsecured loans are riskier for lenders, therefore the interest rates are generally on the higher side to mitigate the risk and are usually 1.33% and above per month.
Be it for an iPhone purchase, a Swiss holiday or for home refurbishing, a personal loan will be helpful without being limited by the use case. Additionally, a single loan can be used for multiple purposes and is not limited such as home loans or auto loans.
- This flexibility is one of the reasons why personal loans are so popular today.
4. Builds Credit Score
If you have a low credit score or are new to credit, a great way to build your score is by availing affordable personal loans and repaying them on time. As you pay your EMIs on time along with the pre-decided interest rate, your credit score will increase.
However, it is important to avail a loan amount that is within your repayment ability. If not, missing EMI payments can be detrimental to your credit score.
5. Minimal Documentation and Easy to Avail
One of the biggest advantages of online personal loans is that the documentation requirements are minimal. Loan providers such as Money View require just three documents which can all be submitted online.
Not only this, but the application process is also quite simple keeping in mind customers’ convenience. These loans can be availed online within minutes and the amount disbursed can range from Rs. 5,000 to Rs. 5,00,000 with repayment tenures of upto 60 months.
Is There a Tax Benefit on Personal Loan?
Unlike home loans, there is no tax benefit on personal loans generally. However, in certain cases, exceptions may be made such as if the loan is being used for home renovation, purchase of assets such as gold or when used for business expansion.
However, each of these use cases are subject to different terms and conditions and may not be applicable for everyone.
Things to Keep in Mind When Going for a Personal Loan
Now that you know some of the benefits of personal loans, here are a few things that will help you choose the best possible loan -
- Ensure that the amount being availed is within your repayment ability
- Clarify all the terms and conditions prior to availing the loan
- Compare interest rates from reliable fintech companies or bank websites and choose the option that is most suitable for you
Personal loans are one of the most sought after loans today. We’ve mentioned just five of the numerous advantages of personal loans but there are plenty more contributing to their popularity. This is especially true for personal loans from lenders such as Money View. Not only are the interest rates affordable, the documentation requirements are minimal, and you can avail loans of upto Rs. 5 lakhs. All you need to do is visit the Money View website or download the app and apply today.