Today’s blog will discuss the top 5 benefits of a personal loan. In the fast-paced and hectic lives prevalent today, getting the opportunity to make true one’s little dreams and aspirations is rare. But, the thought is always there. For example, traveling abroad for a dream family vacation. Unfortunately, time and financial constraints force us to let our plans take a backseat. At other times, we need quick funding to avoid missing out on a great opportunity or meeting obligations on time to maintain our credibility.
Here is where personal loans come to the rescue. Personal loans are unsecured loans procured for various needs like going on a trip to an exotic location, organizing a grand wedding, upgrading the look of your home through renovation, or meeting unforeseeable medical emergencies.
Let’s have a look at some vital benefits of a personal loan:
Hassle-free Documentation
Online personal loan application means digitized documentation. The requested minimal documents can be directly uploaded along with your application online, forgoing all hassles. The digital approach makes the process completely paperless. Additionally, some lenders also provide a doorstep document collection facility.
Documents can include:
- Completed loan application form
- Valid proof of identity, which includes voter ID card, driving license, PAN card, or passport copy
- Proof of address which includes passport, rental agreement, telephone or electricity bill, ration card, bank passbook or statement, or driving license.
- Age proof includes documents such as the passport, PAN card, or a certificate from a statutory authority.
- Income Tax Returns
- Form 16
- Income statements (for self-employed) and salary slips (for salaried).
Simple Online Process
Gone are the days when you must personally visit a lender at their branch. No longer standing in interminable, long braided, slowly moving, serpentine queues.
Now you can apply online for a personal loan at the convenience of your laptop, computer, or through a mobile app. You can also upload digital documents online to validate the information provided.
Quick Approval
24-hours approval in most cases!
3-4 weeks for home loan processing, much less time for a personal loan. Due to this, they are ideal for meeting your urgent cash or payment needs.
If your credit history is strong (CIBIL score of more than 750+), lenders will not have a problem approving your personal loan application.
Customized Plans
You can get customized instant personal loans for various purposes like travel, wedding, home renovation, and medical emergencies. The customization can be done for interest rates, repayment schedules, and tenures based on the borrower’s specific needs and paying capacity.
Many lenders have clear, demarcated product offerings like home renovation loans, wedding loans, medical emergencies loans, etc., customized for the concerned need after considering the ultimate goal of the funds in meeting the particular need. Also, interest rates vary for loans based on the quantum of the loan, tenure, and extensive assessment of the borrower’s credit history.
Builds Credit Score
If you have a low credit score or are new to credit, a great way to build your score is by availing yourself of affordable personal loans and repaying them on time. As you pay your EMIs on time and the pre-decided interest rate, your credit score will increase.
However, it is essential to avail yourself of a loan amount within your repayment ability. If not, missing EMI payments can be detrimental to your credit score.
Conclusion
After knowing all the benefits, we can conclude that taking a personal loan to meet personal expenses is ideal for consumers. The borrower can avail themselves of such benefits offered by MAKS Finserv. Applying for a personal loan is straightforward, and the documentation is concise; opting for a personal loan is ideal.