Whether you want to pursue higher studies, buy a gadget, renovate your home, or handle unexpected medical expenses, there are moments when additional financial support may become necessary. During such times, you may have to borrow funds from your family or friends. However, this may strain relationships.
That is when Personal Loans can assist you. Let us learn more about these Loans, their advantages, and the maximum sum you can borrow.
Overview of a Personal Loan
If you are considering an Instant Personal Loan, you should know that a Personal Loan is an unsecured credit. Consequently, it does not need any collateral. Various banks offer this Loan to their customers typically based on criteria like repayment capacity, credit history, and income level. You can utilise this Loan to meet various financial needs. For example, you can utilise the money to expand your business, renovate your home, fund your dream vacation, etc.
Advantages of Personal Loans
The various benefits of Personal Loans include:
- No need for collateral
A Personal Loan is an unsecured credit. Hence, you do not have to offer any guarantee or security against the amount you borrow. Consequently, you do not have to risk losing your asset if you default on repayment.
- Easy documentation
The paperwork and processing time needed for this Loan are usually much lower than those for several other Loans. If pre-approved, you may not even have to submit any documents.
- No limit on usage of funds
You can use the funds you get from applying for a Personal Loan for any legitimate purpose. Hence, when you opt for this Instant Loan online, you could use the money to pay for your wedding, cover the expenses of your child’s higher education, consolidate existing debts, renovate your home, and more.
- Repayment is pocket-friendly
You can repay your personal loans using easy monthly instalments. The payment terms are usually flexible, and you have the freedom to select the Loan duration that lets you optimise your equated monthly instalments per your needs. A longer Loan tenure usually means lower EMIs and vice versa.
What is the maximum amount you can apply for?
The highest amount you can borrow from a Personal Loan usually depends on your profession, income level, and your bank’s assessment of your Loan application. Banks usually sanction the Loan based on their calculation so that the monthly instalment is not more than 40% to 50% of your monthly income. Lenders also consider if you have any dues when calculating the Loan amount.
Conclusion
Now that you know about a Personal Loan, ensure you compare offers from various banks and apply for one online. Once your Loan is approved, you can use the funds to meet your needs.
