A personal loan is a type of unsecured loan and helps you meet your current financial needs. You don’t usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need.
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Features and Benefits of Personal Loan
- No Collateral Required: Personal loan is an unsecured loan which means a loan offered without keeping any assets (e.g., house or car) as collateral. These loans are offered on the basis of an applicant’s credit history, income details, age, etc.
- Multipurpose Use: Unlike other loan options, personal loan can be used as per the requirements of a borrower without any preconditions. It can be used to overcome any financial constraints, which may arise due to a medical emergency, debt accumulation, sudden travel plans, house renovation, etc.
- Flexible Tenure: In personal loan, borrowers get flexible tenure of up to 5 years to repay the loan amount, thus, making it more preferable than other credit options such as credit card loans or gold loans.
- Simple Documentation Process: To apply for a personal loan minimum documentation is required and is often approved within 48 hours of submitting an application.
- Flexible Quantum of Loan: Based on a borrower’s repayment history, monthly income, age, profession, employer and other such factors, lenders offer personal loan for requirements as low as Rs. 10,000 to as high as Rs. 40 lakhs, depending on the concerned lending institution.