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Top 5 Benefits of a Personal Loan
Posted on Friday, March 10th, 2023 | By IndusInd Bank
Given the uncertain nature of life, there may come a situation in life when you may find yourself in urgent need of funds. This could be for a medical emergency, debt consolidation, home renovation, higher education, wedding expenses, and more. For all such instances, an instant personal loan can be a life-saving financial tool that is as dynamic as the distinctive needs of any individual. Let’s get to know a bit more in detail about the top benefits of getting a personal loan.
- Flexibility
One of the biggest advantages of a personal loan is its flexibility. Unlike other loans, such as a home loan or education loan, a personal loan can be used for almost any purpose. This means that you can use the funds to pay for unexpected expenses, to consolidate debt, to finance a vacation, to invest in your business, and do much more. With a personal loan, you have the freedom to use the funds in a way that works best for you.
- Lower Interest Rates
A personal loan typically has a lower interest rate than a credit card, which makes it an attractive option for people who need to borrow money. The interest rate linked to a personal loan is fixed, which means that you know exactly how much you’ll have to pay each month. This makes managing your monthly budget and planning for the future easier. Additionally, an instant personal loan also has a lower interest rate than other types of unsecured loans, such as payday loans or instalment loans.
- No Collateral/Guarantee Required
Another benefit of an instant personal loan is that you don’t need to put up any collateral to secure the loan. This means that you don’t have to worry about losing your car or home or any other valuable instrument if you can’t repay the loan. A personal loan is unsecured, which means that the lender relies on your credit score and income to determine your eligibility for the loan.
- Quick Approval & Disbursal
A personal loan is processed quickly, which makes it a good option if you need money urgently. Some lenders can approve your loan application instantly, and you can receive the funds in your bank account within a few hours. This can be particularly helpful if you’re stuck in an emergency situation and need money quickly.
- Improved Credit Score
When you apply for a personal loan and repay it on time, it can actually help improve your credit score. An instant personal loan can help diversify your credit mix, which is one of the factors that credit bureaus use to determine your credit score. Additionally, timely payment of your personal loan EMIs demonstrates to lenders that you’re a responsible borrower, and this further boosts your chances of getting loans in the future easily.
In conclusion, an instant personal loan can be a great option for people who need money for a variety of reasons. A personal loan offers flexibility, lower interest rates, requires no collateral, has a quick approval process, and also helps majorly in improving your credit score. However, it’s highly important to bear in mind that a personal loan is still a form of debt and should always be used responsibly. Before you apply for a personal loan, make sure to have a plan in place to repay the loan. And while signing the loan agreement, be sure to thoroughly read all the related terms and conditions.
If you’re looking for a personal loan that seamlessly fits into all your requirements and is available instantly, check out IndusInd Bank Personal Loan. It comes with best-in-class interest rates, has a complete paperless application process, and is disbursed quickly for instant use.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
