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WHAT ARE OTHER BENEFITS OF TAKING A PERSONAL LOAN?

February 26, 2020
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6 minutes read
WHAT ARE OTHER BENEFITS OF TAKING A PERSONAL LOAN?

Earlier, the thought of loans itself was frowned upon: we tended to save for decades before moving homes or altering our business line. However, the “save first” ideology has morphed into an aspirational ideology wherein we “buy first, and pay over time”. As you land your first job, you could be eligible for a credit card or a pre-approved instant personal loan within a few months. There is a paradigm psychological shift in consumer borrowing behavior leading to a significant rise in demand for personal credit.

Your financial needs, irrespective of you being a salaried employee or a businessman, can occur without any forewarning. You may have enough funds saved, however, there are circumstances in which you find yourself in need of some extra bucks. In such a chain of events, taking a personal loan can prove to be a righteous choice.

Here are some of the key benefits of Personal Loan:

  1. Easier to manage than multiple credit card accounts: A single, fixed-rate personal loan funded in a lump sum is much easier to manage than multiple credit card accounts with different spending limits, interest rates, payment due dates, and issuer policies. If you know you need to borrow Rs. 1,00,000, why not apply for a single personal loan in that amount rather than four credit cards with spending limits of Rs 25,000 on each?
  1. No collaterals are required against the loan: Personal loans are unsecured loans – this implies you do not have to mortgage collateral such as your home or shares to get the loan.
  1. Low-interest rates: Personal loan Interest rates, as compared to the repayment of Credit Card or Credit Card Loan is considerably lower. This is especially true in case of larger amounts. Certain NBFCs, like Indiabulls Dhani have interest rates starting a low as 1.17% p.m.
  1. Hassle-free loan processing:You can avail an instant personal loan completely online. This makes the application process and the disbursal process hassle free and instant with minimal documentation required
  1. Consolidated debt: One of the most efficient ways of using a personal loan is consolidating all existing debts. It is wiser to pay off smaller high-interest debts like credit cards or student loans by opting for a single lower interest loan.
  1. At liberty to use the funds for any purpose: One of the biggest advantages of personal loans is that you can use your funds for any purpose you like – be it a wedding, a holiday, a gadget, business investment, home renovation, travel etc. You can opt for a personal loan to satisfy any of these needs. This is not true for loans like a home loan or a car loan. These must be used for the purpose that you borrow it.
  1. Improve credit score: This is mainly true in case you have similar types of existing credit. A personal loan can be useful in improving your score by adding variety to the types of account you hold.
  1. Easy documentation: The processing time and the paperwork required for a personal loan is much lower than for most other loans. You may get a loan with the following documents: ID proof, address proof and income proof. If you are pre-approved for a personal loan, you might not even need to submit any document. Just scan and upload these documents to get your instant personal loan approval. Talk about efficiency!
  1. Pocket-friendly repayment: You can pay off your personal loan in simple instalments or EMIs. The payment terms are usually flexible, and you can choose a tenure that allows you to optimize your monthly outgo according to your needs. Indiabulls Dhani offers tenures of 3 to 36 months with interest as low as 1.17 % p.m.
  1. Reward Programmes to Reduce EMIs: Lenders such as Indiabulls provides Dhani points exclusively to their customers who have availed a Dhani loan. This first of its kind reward programme in India for loans that permits their customers to earn direct cash daily, overall making the loan process a whole lot exciting and eventually reduce your EMI cost. For example, each Dhani Point is equivalent to Rs.1. If you refer a friend to avail a loan, you get 1000 points, which means you earn Rs. 1000!

So, if you are someone who is looking for a personal loan while wanting to reap the benefits mentioned above, you can check your eligibility for a personal loan using a Personal Loan EMI calculator.