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 650) 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.

3. Versatility

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. Digital lending apps such as Moneyview 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. 10 Lakhs with repayment tenures of upto 60 months.