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Why are Personal Loans Very Useful in Dire Times?

Personal loans, whether from banks, non-banking financial companies (NBFCs) or even from fintech companies, are a great saviour for us during dire economic problems. This particular option is very handy when you need money without facing much hassle and not borrowing from friends and family.

The best thing is that you can use the funds as per your convenience, no matter what, with a questions-asked policy. This post reveals why personal loans are useful and handy options to consider during a tough financial crisis.

  • Smooth Processing of the Loan

One of the biggest reasons most people turn to personal loans is their smooth processing. You can apply for the loan online; In some cases, you can also avail of the loan by visiting the ATM or a nearby branch. The requirement of the document is nominal, and the process happens very quickly.

  • Instant Disbursal

Another feature that makes personal loans favourable is its instant disbursal feature. In some cases, the applicant gets the disbursal of the loan amount in just 10 seconds. HDFC bank personal loan is one such option that allows the applicant to lend money in just 10 seconds directly to the account. This is very useful during emergency situations like medical bills, sudden bills, etc.

  • Easy Documentation

Unlike home loans, car loans or any other form of collateral-based loans, personal loans are unsecured and do not have much documentation. Personal loans are unsecured because lending institutions never ask for any collateral from the applicant. Additionally, the paperwork and the overall processing time for the personal loan is quite lower as compared to other forms of loans.

All you need is to show a handful of documents like ID proof, address proof, and income proof, and you are good to go. In some cases, people have pre-approved offers, and there’s no need to submit any documentation.

  • Use Funds as Per Your Will

Personal loans have gained widespread popularity because it never restricts or stops the applicant from spending for random purposes. So, you are 100% free to use the loan amount. You can spend the money on medical emergencies, marriage, remodelling your home, long travel plan, expensive gadget, business investment, etc. But for a home loan or car loan, the amount will be utilized only for the purpose you borrow it.

  • Pocket-friendly Repayment

When you choose personal loans, you get the option to repay the amount in easy instalments or EMIs. The terms for the payment are flexible, and you can choose the tenure as per your convenience.

You can choose a tenure between 12-60 months with EMI getting as low as Rs. 2,162 per lakh (this is not exact and vary from lender to lender). You can also calculate the EMI using an EMI calculator available online.

Apart from all these, you can also foreclose the loan account without paying extra charges or any hidden charges. So, what are you waiting for? If you need quick funds and can repay the loan every month, then nothing can get better than choosing personal loans.

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