A Personal loan can be your best friend when it comes to fulfilling financial obligations in times of need. Not only do they give you a free hand while dealing with mounting expenses, they are also readily available without any terms and conditions on how and where to utilize the funds.
In this article, we tell you the five top reasons as to why you should apply for a personal loan.
What Are Personal Loans?
A personal loan is an unsecured loan that allows you to take care of your financial needs. It helps you use your funds in whichever way you want, thus being a handy financial tool to manage your routine/emergency expenditures.
Reasons to Apply for a Personal Loan:
- Timely payments of Debts
- Medical emergencies
- Quick and Hassle Free Loan
- Helps Build Credit History
- Unsecured Loan
1.Timely payments of Debts
The repayment of any debt carries with it several conditions, one of them being making timely payments. In this regard, one of the foremost reasons to apply for a personal loan is to ensure that you do not fall short of finances while repaying your debt. A personal loan surely saves you from the ignominy and hardship of unnecessary charges and penalties.
It is true that a health insurance always comes in handy in case of a medical contingency. However, the same comes with restraints such as exclusion of certain illnesses, etc. A good reason to apply for a personal loan in such a situation is that you can use the fund to your advantage without there being any restriction while using the money for a particular cause. Personal loans help you rescue yourself from a medical emergency at the earliest.
3.Personal loans are quick and hassle free
Another major reason why you should apply for a personal loan is that it is quick and convenient. These days, you can avail a loan from leading Non-Banking Financial Institutions like Finserv MARKETS at the click of a button with minimal documentation and formalities. The amount is usually credited to your account in less than 24 hours thus making loan an easy financing option.
In the age of ever growing competition among lending companies, you do not even have to physically visit the lender to confirm your loan. Usually, the agents of the company themselves visit you to complete necessary formalities. With Finserv MARKETS, all you need to do is select the loan amount and repayment tenure, upload the required documents, and you’re done! It’s that simple.
4.Helps build credit history
Here’s another reason to apply for a personal loan; it helps you build credit history and lets you avail future loans easily. It is imperative that you apply for a loan and repay it in time in order to demonstrate to your lender that you are capable of taking care of your financial obligations. This way, banks and other financial institutions feel secure to lend money knowing that you have a decent history of paying your loan on time. It also helps raise your credit score tremendously.
5.Personal loan is unsecured
Did you know that a personal loan is an unsecured loan? Well, this is surely one great reason to apply for a personal loan. Unlike your car loan or home loan, a personal loan is unsecured meaning that you do not have to mortgage or pledge any security while applying for such a loan. Although this may mean a surge in the interest rate, it is surely lower as compared to the rates applicable to credit cards.
So, this was all about why you should go for a personal loan. Such a loan lets you use your cash for any kind of purchase that you want. Right from using it for unexpected repairs to starting a new venture to even funding your child’s education or planning a vacation, a personal loan makes it extremely easy for you to enjoy your money in an unrestricted and flexible option.
Things to Keep in Mind while Availing a Personal Loan
Personal loans are a convenient option to meet your immediate financial requirements. Whether you have a medical emergency or wish to clear off all your outstanding debts, personal loans will be able to cover all your financial needs.
Take your overall finances into consideration
It is important to understand that the personal loan interest rates are relatively high and the loan repayment tenures are rather short. You will have to repay the amount you borrow in EMIs, which means that you need to have surplus funds each month to meet the repayment expenses.
Take only how much you need
It is easy to get carried away and apply for a higher loan amount. It is also essential to calculate how much money you require for your immediate needs and limit your borrowing to that amount.
Interest rates can be negotiated
If you have a good credit history, you will not have multiple options for lenders who are willing to offer personal loans to you. Since banks are in competition among themselves, you can always negotiate the rate of interest offered to you.
Go through the loan agreement
Doing so will ensure that you are well aware of the terms and conditions of the loan you are availing, thereby helping you to make payments on time and clear your debt with ease
Check your credit score
Every time you apply for an instant personal loan online, the lender runs a check through your credit report to determine your eligibility. The higher the number of applications you send to different lenders, the more your credit report is pulled up.
So why wait? With Finserv MARKETS, you can avail a Bajaj Finserv Personal Loan online in a quick, easy and hassle-free way. What’s more? The entire process is online and can be processed right from the comfort of your home! Also, you get the freedom of choosing your loan repayment tenure that ranges between 12 – 60 months. What more could one ask for? Go ahead and apply for a Bajaj Finserv Personal Loan at Finserv MARKETS, today! You can also download Bajaj Finance App to enjoy wide range of product offerings like Bajaj Finserv Loans, Bajaj Allianz Insurance, Cards, Investments & UPI Payments.
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”