Benefits of Personal Loans

You may really like one particular loan. It is giving you, let’s say 90% of your desired amount. The repayment period is good enough too. However, the only downside is that the EMI’s are troublingly huge. It is far better to take loans whose EMIs you will be able to pay.

When taking loans, don’t make knee-jerk reactions and end up getting a loan that you’ll regret later. Remember, that if the loan amount is high, you’ll either have to pay a high interest as in the case of personal loans, or you’ll have to keep paying EMIs for a longer period of time, or both. In all cases, make sure that your monthly EMI deductions are not more than 50% of your monthly net income.

Wondering if your loan’s EMI is affordable or not? Use our handy calculator!

Benefits (Which flavor do you want?)

Hate to break it to you, but you’ll find it hard to find the perfect loan.

Need a personal loan that comes with low interest rate, quick turnaround time and easy eligibility? Chances are that you’ll have to keep looking for some time.

However, what if you need only a loan with a low interest rate? That’s easier!

In the following table, you’ll see the different personal loan flavors (or benefits, if you will), from various banks. We have also compiled the updated loan interest rates from all the following banks: 

9 top Benefits of Personal Loan

If you are looking for maximum benefits from any form of credit, personal loans are the best. These come with a wide range of benefits. 

1. You can borrow as much as Rs. 40 lakhs, and even beyond.

2. Minimal paperwork.

3. Quick approval.

4. You can choose a loan tenure till 5 years and pay back the loan in easy instalments. 

5. Applications can be submitted both online and online.

6. There are no restrictions on what you can do with the funds (as long as it is legal, of course.)

7. Interest is affordable from 10% to 24% per annum.

8. Personal loans aid debt consolidation.

9. The power to get pre-approved loan offers. 

Why is it a good idea to get a personal loan?

You mean apart from the fact that you can use the funds for any legally and that it needs no security?

Of course! 

Personal loans can be a good option in a variety of circumstances.

Here are five instances in which a personal loan can be a viable option.

• You get to consolidate your credit loans: Have several loans you need to pay off? Why not consolidate them all into one account so that payments become more affordable! Yes, it is totally possible. This is what is called Consolidation of Credit Cards. Another attraction is that doing so decreases your APR by a good degree.

• You can say goodbye to your student loan: Student loans can be a thorn in one's side for many years. But there’s a way to pay them back: personal loans! Ok, no surprises there. But on a serious note, it is true. By refinancing your student loan, you get a much-needed financial relief, along with a marked fall on your loan interest rate. Finally, you can pay off your student loan faster! And by the way, student loans come with tax benefits.

• You can finally buy what you always wanted!: Have that nagging urge to buy that cool gadget? Does your wife want that expensive furniture collection? Now, there is a difference between needs and wants, so be sure that you really need it or want to buy it. Best not to regret your decisions later, right? So anyways, getting a personal loan for such purchases is better than financing from the seller.

• Have a lavish wedding: Planning and paying for a wedding can put a serious dent in your credit card, and even affect your precious credit score if you can’t pay back in time. To bypass this risk, get a personal loan instead. This saves you from high interest as well as its APRs are lower than credit card interest rates.

• Boost your credit score: Using a personal loan to improve your credit score is a smart idea, for several reasons than one. First, since your credit score depends on Credit Mix, it makes sense to have a personal loan apart from credit card debt. This will raise your credit score.

Second, personal loans can lower your credit score as it increases your credit limit. The lower this percentage is, the better your credit score. Simple, huh?

And lastly, paying back on time always boosts your credit score nicely.

In this section, you have seen how personal loans can be good for your credit score.