In an ideal world, all of us would have the required sums to meet one’s expenses and any emergency situations. Sadly, it isn’t a Utopian world, and there are situations when you need money on an immediate basis. This may be for meeting the emergency medical requirements of a family member or to fund personal expenses like the wedding of your child, home renovations or even going on a vacation.
While your friends and family may be ready to loan you huge sums of money, you’re at the risk of damaging your relationships because of these informal loans.
The best way out of such a situation is to avail a loan, and the best choice is personal loans. These are unsecured loans that are easy to avail, and you get the amount you require within a few days. Sounds hard to believe ain’t it?
Well no! Check out the top benefits of personal loans and find out the reasons why they are the best loans out there:
- There is no restriction on how you spend the borrowed amount
This is one of the biggest benefits of these loans when compared to other types of loans. For instance, if you avail a home loan, the borrowed amount must be spent on financing a residential property. Your financial provider verifies this.
On the contrary, you have full freedom on how you spend the amount you borrow via a personal loan. You can go on your much-awaited vacation or make extensive renovations to your house; the choice is yours.
- Lack of Collateral
This is the main reason why most people opt for a personal loan. It’s an unsecured loan, meaning you don’t have to provide any security in the form of property, shares or other assets to your lender. This makes it a highly beneficial choice for customers who don’t have the required asset to provide as collateral.
- Easily Available
Personal loans are readily available to anyone. Most financial institutions offer personal loans at attractive interest rates, and it’s often easy and convenient to avail one when compared to other types of loans.
- Eliminates the need for intermediaries or agents
You don’t have to know an agent to get a personal loan. You can directly approach your lender, specify your details and provide the necessary documentation to avail one.
- Instant Approval and Disbursal
Since personal loans do not require any collateral, the processing time of these loans is quicker when compared to other loan products. The representative does a quick background check, and once the financial institution has approved the loan, the amount is disbursed either on the same day or within a couple of days.
- Less Documentation
Unlike home loans and auto loans that require a mountain of paperwork, personal loans don’t require much documentation.
- Broad Tenure and a Wide Amount Range
The amount you can borrow via personal loans varies from something as less as 15k to as high as 20 lakhs and more. Similarly, the repayment tenure can be within one year, or you can even choose five years depending on your requirement.
Personal loans are one of the most convenient, easiest and hassle-free options to meet your cash requirements. So, instead of opting for a loan on your credit card or choosing other loan products, opt for personal loans and breathe easy.
If you are in need of money to meet an emergency or are looking to raise capital quickly for your expenses, you must check out the benefits of personal loans and find out the reasons why they are the best and easiest option in times of need.