If you are looking for a way to finance a purchase in the present market, you are probably aware with the notion of personal loans. Unsecured loans like these are quite popular among borrowers since they may be used to pay for a wide array of expenses swiftly and simply. To put this into perspective, it is estimated that around 77% of working Indians need a personal loan to manage their personal finances. Want to know why they’ve become so popular? Okay, let’s have a look.
Personal loans may be obtained without the need to put up any kind of security. As a result, you won’t have to risk your share portfolio or fixed deposit as collateral. A high credit score and regular income are all that are required to qualify for the unsecured personal loans.
Quick and easy criteria
Unsecured personal loans are now available from several lenders to a far wider range of borrowers than only salaried professionals. If you meet the criteria, the loan is available to anybody who applies. To qualify, you must often meet certain age requirements, earn a certain amount of money or get a certain amount of pension, have a certain credit score, and so on. If you are concerned that your credit score may prevent you from submitting an application, you may look for a co-signer.
Tenure That Can Be Modified
Though most personal loan durations are rather brief and cannot exceed five years, the vast majority of lenders will allow you to determine the amount of time over which you will be needed to make payments on a personal loan. This means you may choose a term that works best with your monthly budget and repayment capabilities. Thus, the process of making repayments is not onerous.
Lower interest rates
When the loan duration is considered, the interest rate on an unsecured personal loan is often rather manageable. Loan repayment periods are often rather short, thus borrowers are ready to pay somewhat higher EMIs if it means the overall cost of the loan would be lowered.
Raises credit score
In addition to meeting immediate financial needs, The unsecured personal loans may help you spread out your payment obligations and build a more secure financial future. Actually, timely EMI payments might have a significant impact on your CIBIL score. As a consequence, you may discover lower interest rates on personal loans, a greater range of lending options, and higher loan amounts available to you.