In today’s fast-paced world, who has the time to wait for anything, even if it is a loan? People want their needs met instantly or in quick time and have no patience to visit banks, stand in queues, or fill up multiple forms.
Given this backdrop, a personal loan seems to be the ideal solution when a need for short-term funds emerges.
You may say that a credit card is your best friend and you can swipe that piece of plastic whenever you want but have you checked the cost of a credit card if you forget to pay the outstanding amount on time?
Credit cards are excellent as long as you use them as a cash substitute and pay off the dues on time. If you use them as an extension of your paycheck, you are in big trouble.
They charge interest from 2.5-3% per month which amounts to a whopping 24-36% on an annualized basis.
Crazy rates, right? Now compare them with personal loans. You can get personal loans from 11-22%. That’s a whole lot of interest saved right there, isn’t it?
Personal loans are far more convenient as you can take your time to decide the amount and tenure you wish to take them for. It will help you manage your expenses better as you will have to commit to an EMI and honor it every month.
In today’s smart world, taking a personal loan is as easy as a walk in the park. If you have a smartphone and access to the internet, you have all the options literally at your fingertips.
Wondering How a Personal Loan Works?
Personal loans, are, by nature, unsecured loans, which means you don’t need to put up assets to pledge against them. This, by itself, sounds like cool music to the ears of the millennial generation who are on their first job and have scarcely started building assets.
Wait…Can Anyone Take a Personal Loan?
Well, not really. Since the loan is unsecured, the lenders need to be sure that the borrowers will return the money. So, they have some minimum requirements that borrowers need to fulfill to avail of a personal loan.
If you are an Indian citizen or resident over the age of 21 or under 60 years and earning a net monthly income of over Rs 30,000, you are eligible to apply for a personal loan.
Okay, How do I apply for a Personal Loan?
Applying for a personal loan is very easy. All you need to do is download the loan app on your phone and fill in the application. Alternatively, you can also visit the website and complete the same.
You will need to upload the following documents:
- PAN Card
- Aadhaar Card/Driving Licence/Passport
- Salary slips of the last three months
- Bank statements of the last six months
That’s it. Your job is done. Now you can wait for the lender to assess your application, check out your credit score and your documents. If everything is perfect, your loan will be approved and the amount credited to your account.
Some do it in minutes, others within a day but it is definitely way quicker and easier than a traditional loan.
It is good to be aware that having a good CIBIL score can help you get a personal loan quickly and without any hassles. You may wonder what a CIBIL score is.
Well, a CIBIL score is a numerical summary of your credit history. It is a number between 300 and 900 generated by TransUnion CIBIL based on the credit report it has collected from banks and financial institutions. A number around 750 is considered very good for getting quick personal loan approval.
Most lenders offer flexible repayment options to pick from including interest-only EMIs for the first few months or an overdraft where you need to pay interest only on the amount used.
Make sure you check out the lender and the fine print before getting into a loan agreement. If you choose to repay the loan after six months, most lenders waive the prepayment penalty.
Whether it is your wedding or a medical emergency or a dream gadget you want to buy or a vacation or simply meeting the end of the month cash crunch, you can go for a personal loan to manage your requirements.
It is quick, efficient, and easy to process. As long as you pay your EMIs on time, there is nothing to worry about. When you have access to a personal loan at your fingertips, there is really no need to stress. No matter what your funding needs, you can get it resolved within a day.
The cash you need is just a few clicks away… at your fingertips, literally and metaphorically.