Mulling over the idea of taking a personal loan, but don’t know all its benefits? Read on to brush up on important benefits of the product before you apply for the loan:
* It is an instant solution to a financial emergency.
There are very few avenues, short of borrowing from your savings account or liquidating an investment, that offer you a large amount of money in a short time. Finishing your savings and liquidating an investment are not good options when you consider that it takes years of dedicated focus and commitment to build them. Instead, take the easier and more practical way out and apply for a personal loan. The loan is processed quickly, sometimes within 24 hours, and offers you instant access to a large sum of cash that you can use to meet an emergency.
* The paperwork is minimal.
Another advantage of taking the online loan, apart from the speed of processing and approval, is that you don’t have to jump through hoops and provide reams of paperwork to get the loan. If you apply for the loan on an instant loan app, you are required to submit just four or five documents to get the application process started. These include your personal ID proof (Aadhaar card/Voter ID/drivers’ licence), residence proof (utility bill showing your name OR leave and licence agreement showing current address), income proof (last three months’ salary slips), income statement (savings account statement showing salary credit) and a recent photograph or selfie.
* You can apply for it using a loan app – no need to fill out paperwork.
Most lenders in India today, from banks to online loan apps, offer applicants the opportunity to apply for the personal loan online. However, most lenders ask you to appear at the branch office in person to submit documents, pay processing fees, surrender post-dated cheques, sign the application form, and collect the loan cheque. As opposed to this, instant loan apps have a fully digital UI for the entire process, from uploading documents to collecting the disbursed amount in your savings account and repaying the EMIs online. You don’t need to fill out any separate paperwork to process the loan.
* It has a short tenure so you don’t remain in debt for long.
If you are hesitant about taking any loan because you fear being in debt, you should certainly opt for a personal loan for your immediate needs. The personal loan has a relatively short tenure as compared to other loans like home loans, which may extend up to 20 or more years. A personal loan has a maximum tenure of over a year, with the EMIs being repaid every month. You might even take a loan for just 6 months. The loan is repaid from your salary without burdening you, and is fully repaid without becoming a long term liability.
A personal loan offers many advantages as listed in the article – these points make it an attractive and practical solution for your short term financial needs.