What Makes Personal Loan Preferred Loan Type?

In the realm of borrowing options, personal loans stand out as the favored choice for individuals seeking financial flexibility. With their versatile utility and broader scope of usage, personal loans have emerged as the preferred loan type for a diverse array of personal and financial needs.

With changing lifestyles and rising inflation rates, it can get challenging to meet costs. Financing children’s education, funding an international trip, or renovating the house are big-ticket expenses that can take a substantial amount of funds. At such times, a personal loan can be handy to address immediate or pressing financial needs. As an all-purpose loan, you can use the amount for any purpose, unlike other loans. This is why many customers prefer availing personal loans to meet their financial obligations.

There are various reasons which make the personal loan preferred loan type. Have a look at the reasons:

1. Easy to Avail- Most leading banks and financial institutions offer personal loan. You can simply visit their website or download their loan app to obtain a personal loan. Online loan applications ensure you don’t need to visit the lender so you can enjoy quick and easy processing without hassle.
2. No Collateral Needed- Personal loans are unsecured loans. They do not require you to pledge collateral as security. Thus, it is favorable for those who can not promise any assets against their loan. Even for those who come under the low-income bracket, small personal loans can be availed.
3. Minimal Paperwork- The documentation required for availing of personal loans is basic and limited. Since personal loans do not demand collateral, the applicant does not need to submit property/asset documents for verification. It only requires identity proof, address proof, proof of employment, and bank statements for income verification.
4. Quick Disbursal- Processing of personal loans is speedy. In most cases, once the eligibility criteria and documentation are in place, a personal loan can be approved quickly. If all factors are met, you can receive the money in your account on the same day of the loan application, within 24 hours.
5. High-Value Loans- The loan amount can vary for different lenders. Typically, you can obtain a loan starting from Rs. 50,000 to Rs. 25 lakh. The amount of loan you are eligible for depends on your income, credit score, repayment capability, and other such factors.
6. Affordable Interest Rates- Since personal loans are collateral-free, the risk component is higher for lenders. This is why they may have a slightly higher interest rate as compared to other loans. However a personal loan offers greater flexibility without requiring collateral. This is why interest rates are somewhat justified. Plus, many lenders introduce discounts and lower interest rates to make loans more affordable.
7. Flexible Tenures- Personal loans give you the flexibility to choose your loan tenure. It can range from twelve months to five years depending on the loan amount and your repayment capacity. A longer tenure can allow lower EMIs and vice-versa. You can use the online EMI calculator to calculate your EMIs and decide on a tenure that suits you best.

Conclusion:

If you require funds to meet your personal expenses, you can avail a personal loan from Bajaj Finserv. You can go to the website or download the Easy Loan app. The Bajaj Finserv Experia online loan app is swift and efficient, which makes it one of the best loan apps in India.

It offers instant loan at lower interest rates with minimal paperwork. The loan amount can go up to Rs. 25 lakhs and it provides a flexible repayment tenure ranging from 12 months to 60 months. You can receive the money in your account within 24 hours of loan’s approval.

Besides, there are many pre-approved offers on personal loans, business loans, home loans, and a host of other financial products. These offers can make loan processing simpler and also help you save on time. You may check out your pre-approved offer by sharing some necessary details.