Personal loans have many benefits, including their adaptability, accessibility, and hassle-free application process. A personal loan is a fantastic option to pay for your urgent needs. You could take out a personal loan to pay for unexpected medical bills or a big purchase.
Pros of a Personal Loan
Lack of a Collateral
Personal loans aren’t backed by anything, so you don’t have to put up anything to get one. Because of this, it’s easier to get a personal loan than it is to get a loan for a house, a car, etc.
But as a borrower, you should know that unsecured loans are riskier for lenders, so the interest rates are usually 1.33 per cent or higher each month to make up for this.
Processing a personal loan takes a lot less time than processing a home loan, which can take 3–4 weeks. Because of this, they are the best way to meet your immediate cash and payment needs. If you have a good credit history, it won’t be hard for lenders to say yes to your loan request. Loans are also given out quickly, and the money is in your account faster than other loans.
Increases Credit Score
If you have bad credit or no credit history, getting personal loans that you can pay back on time is a great way to improve your credit score. Your credit score will increase if you make your EMI payments on time and at the rate you agreed to.
But it’s important only to borrow money that you can pay back. If you do, paying your EMIs could help your credit score.
Multiple Methods of Payment
Some lenders will even let you only pay back the interest on the personal loan for the first few months. This way, you can lower the initial cost of your EMI payments and use the money because you got it in the first place. Remember that the first few months will depend on how long you have to repay your loan and how much principal you borrowed.
Flexible Loan Repayment Period
You can pay back the personal loan anywhere from 12 to 60 months. But your ability to get a loan will determine how long you can take to pay it back.
Easy Process for Documentation
You won’t need a lot of paperwork to get a personal loan. Now, all you need is a PAN card, an Aadhaar card, proof of your current address (if you’re borrowing the money), or proof that you have a steady source of income.
High Amount Available
You could get a personal loan for up to 50 lakhs. Your credit history will determine how much you can borrow, so keep that in mind.
No Limits on Final Use
You can use the money however you want. You can use the money from the loan to pay for your dream trip, make your house smarter, or even pay for medical bills that came up out of nowhere.
If you need to fix your car’s transmission and buy a new dryer and washer but don’t have the money on hand, a personal loan can help. If you use your car or those appliances a lot, you can use a personal loan to pay for expensive repairs or to buy large household appliances and electronics quickly.
Don’t Worry About Limits
Loans are used for many different things. If you bought a house with a mortgage, that would help. With a car loan, you have to buy a car. You should use the money from your student loan for tuition or other approved costs. But people who take out personal loans have more options for spending money. A lender may ask what you plan to do with the money in situations other than personal loans. However, limits are usually written in the fine print. Here are some ways that people could use the money from a personal loan:
- Unexpected costs, like medical bills, have to be paid for.
- Adding things to the house
- Getting money for a family trip or other big purchase
- Debt consolidation
Who Can Apply for a Personal Loan from Piramal?
Salary workers with the following jobs can apply:
- MNCs or companies like them
- Partnership Businesses
- Concerns about ownership
- Institutions run by the government, Private sector, and Public sector.
The age range for these salaried workers should be between 21 and 60. They have to make at least Rs. 25,000 per month and have worked for the same company for at least six months.
Documents Needed to Get a Personal Loan from Piramal
PAN Card: Required for anyone who wants to apply for a Piramal Personal Loan.
Proof of identity
Aadhaar Card, Voter ID Passport, Driver’s Licence
Proof of Address
- Voter’s Identity Card
- Utility bills like Telephone Bills/Electricity Bill, etc
- Registered Leave and Lease Agreement
- Passport Driving Licence
- Aadhaar Card/Aadhar Acknowledgement
Proof of income
- Pay stubs from the last month
- Bank statements from the last three months.
- You will need a co-applicant if you need to combine incomes to get a loan.
- The spouse can only send in a joint application.
- At the time of the loan application, it will also need the documents of the other person who wants the loan.
Financing Piramal Personal Loan Risk Gradation
Piramal Finance uses the following method and takes the following factors into account when determining a borrower’s risk level for a loan:
- Profile, the borrower’s standing in the market, the use of internal credit scoring algorithms that use proven methods like Bureau performance and other data sources,
- How long we’ve known the borrower, how well they’ve paid back loans in the past, and how well our similar clients have done.
- Characteristics and values of the first and second forms of collateral and security,
- What kind of asset is being paid for, what is the loan being used for,
- Interest, the default risk of the linked business segment,
- Rules, if there are any, and other things that might be important in a certain situation.
- The loan’s term, amount, schedule for paying it back, and structure (along with any proposed moratorium, if any).
- Clients may pay different interest rates for the same loan term, depending on how one or more factors are put together.
You should know that the approval process for personal loans goes a lot faster when you use a lender’s mobile app. Avoid the long application processes, crazy collateral requirements, high-interest rates, and hard-to-meet payback schedules that come with other borrowing options. A personal loan is a quicker and easier way to get the money you need, which will be sent straight to your bank account. If you want to learn more about these things, you can go to Piramal Finance.
If you want to learn more about these, you can learn more at Piramal Finance.