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5 Good Reasons to Get a Personal Loan

Leading banks in India offer unsecured personal loans instantly. This means you are not required to put your assets on hold as collateral. Borrowers also do not have to fill a lengthy application form, visit the bank in person or wait for days before getting it approved. Today, a personal loan is a simple solution for many customers.

The best ones come with:

  • Low personal loan interest rates
  • Easy eligibility and documentation
  • Transparent rates and charges
  • 100% Digital, paperless online process
  • Flexible tenure up to 60 months

So, if your financial situation justifies a loan, consider taking it. There are many good reasons without any risks or trade-offs. Here’s whyit could be the best choice in certain situations.

1.     Unplanned Expenses

These are usually the emergencies that crop up. For example, an immediate home repair or a big medical expense. A loan here is a great idea if the bills are beyond what you can afford. All you have to do is apply for an instant personal loan to get started. The fund is usually disbursed within a minimum timeline. You can easily cater to your financial needs without having to break your savings, mutual funds or FD.

2.     Debt Consolidation

Personal loans rate of interest tends to be lower than that of a credit card. This makes it an ideal option to clear existing debts. Combine all the outstanding amounts into a single monthly or quarterly payment.

This makes it easy to:

  • Manage and track the debts
  • Make steady payments regularly

without getting financially distressed. You can also ensure a good credit score once the existing loans are cleared on time. Now use a personal loan EMI calculator to know how much you have to pay monthly to close the loan.

3.     Credit Building Opportunities

Consider taking out a personal loan to build your credit profile.It will help:

  • Getting favourable terms for future loans
  • Reducing the chances of declined loan application

A personal loan will have a positive impact on your payment history if you can manage clean records. Try to pay back the amount consistently over a long period. This will have a good effect on your credit history since it shows you were responsible over time. Adding a personal loan to your mix of mortgages and credit cards can improve scores.

4.     Large Expenses

It could be anything from a wedding, education or structural changes at home. Borrowing for these purposes makes sense if you do not have sufficient savings. Otherwise too, a low personal loan interest rate makes it easy to cater to these needs without dipping into a savings account or emergency fund. You can pick a long tenure to lower the EMI burden.

5.     Business Requirements

Immediate needs like buying major equipment or shifting base could be expensive. Cover it with a personal loan without hassle. Use the personal loan calculator so that you have a clear idea of the regular payment amount and avoid penalties on missing out.

Consider your financial situation before taking a loan. It will help you manage it easily and reduce the risks of being a defaulter.