Personal loans are debt products offered by lenders such as banks and NBFCs to individuals who want to raise immediate capital to cover their personal expenses. Such individuals, called borrowers, apply for a personal loan when their expenses are high or they do not want to use their hard-earned savings to cover the expenses. An instant personal loan allows such borrowers to receive a personal loan amount that they can use at their convenience. Such expenses can include buying a car, paying for higher education, covering marriage expenses, or paying for a vacation. However, when borrowers apply for a personal loan, lenders charge interest on the instant personal loan amount. The borrowers of the personal loan are legally liable to repay the principal amount along with interest to the lender within the instant personal loan tenure.
Instant personal loans have become one of the most in-demand loan products in recent years, owing to their flexible structure and unique benefits. When borrowers apply for a personal loan, they can use the loan amount to cover various personal expenses, which gives them an effective option to cover their financial liabilities and ensure their credit score remains high. However, when choosing among numerous loan products, it becomes hard for borrowers to narrow down on the ideal loan product that effectively caters to their needs. In such a case, an instant personal loan is a perfect choice for 5 reasons.
Top 5 Reasons to Apply for a Personal Loan
Here are the top 5 reasons to get a personal loan in India from a good lender:
- Quick approval and disbursal: Quality lenders have designed their personal loan products to work as instant personal loans to provide immediate capital to borrowers. When borrowers apply for a personal loan, quality lenders review the loan application in a matter of minutes, followed by quick approval. Once the lender approves the instant personal loan application, it takes less than 24 hours to approve the disbursal. The disbursal approval ensures that the borrowers get the personal loan amount into their bank account, which they can then use to cover various personal expenses.
- No collateral: Borrowers find it difficult to raise adequate capital from lenders when they apply for other loan products apart from personal loans. The main reason they face difficulties is the requirement to pledge a valuable asset as collateral. In the absence of collateral, the lender rejects their loan applications. However, in the case of instant personal loans, there is no need to pledge a valuable asset as collateral. As there is no need for collateral when you apply for personal loans, borrowers can ensure they raise immediate capital without worrying about tying up an asset, which the lender can sell in case of repayment default.
- No-end use restrictions: Personal expenses can include a host of expenses such as education, marriage, home renovation, medical emergencies, vacations, etc. Although lenders have designed specialized loan products for some of the expenses, such as car loans, home loans, education loans, medical loans, etc., borrowers can only use the loan amount of such loan products for the purpose specified in the loan terms. For example, borrowers can use the loan amount of a medical loan only for medical purposes, which they have to show to the lenders. However, in the case of instant personal loans, there are no end-use restrictions on the loan amount. It means that the borrowers can use the loan amount for any legal purpose without showing the expenses to the lenders.
- Flexible loan structure: Borrowers may face difficulties submitting the loan application for other types of loans as they may seem extensive and require filling in numerous documents. Furthermore, completing KYC may require uploading a host of documents. However, when you apply for personal loans, it follows an online loan application that is simple and time-saving. To finish the KYC process, you only have to enter a few personal details and show a small amount of documentation. Once you submit the personal loan application form, the lender approves the loan application within 30 minutes. However, you must fill in all the correct details.
- Nominal rates: Unlike other types of loan products, instant personal loans follow a cost-effective charging structure that the lenders have designed, keeping in check the various capital needs of different borrowers. When you apply for personal loans, you can avail of a loan amount ranging from Rs. 1 lakh to Rs. 10 lakh, where quality lenders charge nominal interest rates to mitigate the overall repayment burden. Furthermore, such lenders offer instant personal loans with zero prepayment and foreclosure charges. With an attractive cost structure, personal loans offer a pocket-friendly loan product within your budget.
How to Apply for a Personal Loan?
You can follow the below steps to apply for personal loans after choosing an ideal lender:
- Step 1: Open the lender’s website and navigate to the ‘Personal Loan’ page.
- Step 2: Click on the ‘Apply Online’ button and enter your phone number.
- Step 3: Enter the OTP received on the phone number to open the application form.
- Step 4: Enter all the required personal and professional details.
- Step 5: Upload all the required documents and click on ‘Submit.’
Personal loans have become an ideal avenue for individuals to ensure they raise immediate and adequate capital with flexible repayment terms and attractive interest rates. Now that you know the top 5 reasons to apply for personal loans, you are better equipped to raise immediate and adequate capital. However, choosing an ideal loan product among the numerous available personal loan products is vital. If you have any future queries, you can head over to Piramal Finance to cater to your personal expenditure needs.