Whether you want to plan a holiday with your family or want to make a down payment for your car, personal loans are an excellent way to address your requirements. The major reason for this is that lenders have simplified the eligibility terms to make it easy for a borrower to qualify for one. In fact, these days you can get a personal loan online. As there is no restriction on the end-use of the sanction, many people apply for such loans. To know more about the reason people opt for a personal loan read this blog.
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Loan for every need
A major reason for the popularity of personal loans is that it gives you the freedom to apply for an amount that you actually need. Whether your loan requirement is small or big, you can fulfill it by a personal loan. For instance, you can avail a personal loan for a wedding to take care of the venue, catering, travel, jewelry and other wedding costs with ease. The best part of the personal loan is that they come at a lower rate of interest. For example, the HDFC personal loan interest rate starts from 10.75% p. a.
Application without collateral
Most people hesitate to put their assets at risk while taking a secured loan. But there is no need to provide any collateral to the lender if you take a personal loan. However, it makes it difficult for the lender to give approval for a personal loan; because there is a lot more risk involved lending the unsecured loan. But if you have a strong CIBIL score of 750 or more and steady monthly income to repay the loan, you can apply for a personal loan and expect a quick approval. Assume you apply for HDFC Bank personal loan, then you can get funds up to Rs 15 lakh giving no collateral
Easy eligibility and minimum documentation
An important aspect to get a loan is the eligibility criteria, as it decides whether a person can qualify for the loan. In case of personal loans, if a borrower meets the eligibility criteria, chances are that he will enjoy the journey to borrow the money he needs.
For example, take a look at the simple eligibility criteria to avail HDFC Bank personal loan:
- The applicant should be an employee of a private limited company or PSU.
- The applicant’s age should be between 21 years and 60 years.
- The applicant should be in the job for at least 2 years.
Besides that, to prove the eligibility, a borrower needs to submit basic documents such as KYC details, income proofs, and bank statements. With HDFC Bank, if you still find it difficult to prove your eligibility, you can use the HDFC personal loan eligibility calculator. This is a free tool and helps you a lot to find whether or not a person is eligible for the loan.
Flexible tenure to repay the loan
Most lenders offer repayment tenure up to 5 years to repay a personal loan. Like with HDFC Bank personal loan, the bank allows a lender to repay the loan amount in 5 years. However, a longer tenure increases the amount of interest you pay with the principal loan amount. On the other hand, choosing a shorter tenure can increase the burden on your fixed monthly obligation, which can disturb your FOIR (fixed obligation to income ratio). So, to avoid all the hassle, you can choose an optimum tenure that can serve your purpose.
Instant financing with speedy approval and quick disbursal
With the help of improved technology and state-of-the-art innovations, taking a personal loan is very easy these days. Many lenders offer personal loans online and disburse the loans in a short time. Staying at the comfort of your home, you can apply for a personal loan without compromising the quick access to funds. As with HDFC personal loan, you can get the approval in a few seconds and your loan gets disbursed on the next working day. On the other hand, if you’re an existing customer of HDFC Bank, then you can get HDFC Bank pre-approved loans within a few hours.
Conclusion
Personal loans are the best way to cater to your pressing requirements. In case of urgent cash demand irrespective of big or small, you can take a personal loan. The best part of the personal loan is that you need not put your valuable assets at stake to get a loan. The only requirement is that a borrower should have a strong CIBIL score and a good repayment history. Moreover, the easy eligibility criteria and a small need for documents make personal loans, the primary choice of the borrowers.