Personal loans can be taken when an individual has a high amount of expenses but cannot meet them due to a shortage of funds. Thus in that case the borrower can avail of the personal loans for satisfying their personal needs. The personal loans can be taken at attractive interest rates of 9-14% per annum. Also, there is no need for proof to be shown for the personal loans. There is no specific purpose for the expenditure from the loans acquired as for the car loans or personal loans. The loans are available for a tenure of 5 years. The early repayment of the loans can help the borrower avail rebate on the loans. Thus the borrower can save money on the interest repayment. The loans taken should be repaid on time by the borrower to avoid getting penalized by the bank. Also delay in the payment of the loans installments leads to the reduction of the CIBIL score. The loans taken can be utilized for any purpose. The reasons can be many for availing loans from the bank like the marriage purpose, medical purpose, and travel purpose, for furnishing purpose, home or office renovation purpose.
There are many misconceptions in the minds of the people about personal loans and thus people do not avail loans from the bank as personal loans. Personal loans are beneficial for people in case if they are not able to satisfy their own needs. The personal loans are being reasonably charged with the interest rates for the loans. The loans taken are also charged with the onetime processing fees for the loans as the bank incurs the cost for the third-party verification of the documents and also processing fees is a part of the recovery process of the loans. The loans can be taken from any of the lenders for availing loans from the bank or an NBFC. The applicant can avail of loans from the bank through the online process as well. The loans taken helps individual satisfy their needs. Personal loans are not eligible for income tax benefits as the government does not provide a rebate on income tax on personal loans. Thus tax benefit cannot be the reason for availing of personal loans. Personal loans have helped many people take the benefit for satisfying the need of an individual and have helped largely many of the companies sell their goods largely to the customers with the help of personal loans.
Myths about personal loans
- Bank does not easily approve loans to the borrowers:
Bank has an instant approval process for the loans in case of personal loans. The personal loans being taken can be approved quickly and also fast disbursal can be done. In the case of online applications, the bank approves instant loans and instant credits are possible for the loans. The bank usually takes 48 hours for the approval of personal loans in case of the offline application while as in the case of the online application instant loans can be approved.
- Interest rates charged are very high in case of the personal loans:
Personal loans interest rates are higher than that of home loans or car loans. But the interest rates are still affordable in the case of personal loans as the interest rates are being charged at interest rates of 9-14% per annum. Also, the borrower charging the lowest interest rates can be surveyed, and accordingly, the loans can be taken from the lender at affordable prices.
- Personal loans are least are not approved for a higher limit or tenure:
Personal loans can be taken for up to the maximum limit of Rs.25 lakhs. And the tenure can be approved for a period of reasonably 5 years. So thus the amount being approved and also the tenure are comparatively far better and convenient for the borrower.
Many of the doubts are being cleared about personal loans. Personal loans are beneficial for the borrower to satisfy one’s necessary needs. So thus the personal loans it is recommended to the borrower to be availed in case of any of the emergency needs for expenditure.