​Here’s How a Personal Loan can be Helpful in Times of Financial Distress

personal loan: Can a personal loan help you tide over a financial crisis? -  The Economic Times

Everyone at some point of time faces a liquidity crunch. Whether it is month end blues, medical exigency, unstable business outcomes or other financial stress, all such events can put anyone in a financial crisis with an immediate need for funds. Here is where personal loan comes in handy to help during such turbulent times.

Checkout how a personal loan can act as a prudent enabler to meet your instant monetary shortfalls:

  • Ease of access

Ease of access is one of the major benefits of personal loan. Many lenders have an easy loan application procedure, which can be undertaken digitally. Just by filling up the form and clicking on the personal loan apply online button, you can place an application for a loan with zero need to visit the bank. This is an ideal option for you if you are busy dealing with​ an​ emergency ​as it removes the need to make multiple bank visits for application approval.

  • Hassle-free documentation process

Before you click the personal loan apply button, you must attach the necessary documents required for processing your application. For personal loans, document requirements usually are minimal. ​These documents include your latest salary slips, last 3 months bank statement and KYC documents. In case you are an existing pre-approved personal loan customer, you do not require submitting any document. Note that pre-approved loan is offered by financial institutions after in depth scrutiny of your past repayment behavior, credit profile and other crucial documents.  

  • Quick loan approval

Once the personal loan application process is done, the approval may be granted instantly in case of pre-approved personal loan, provided all eligibility criteria are met.  In case of a regular personal loan application, the loan proceeds may be disbursed within 2-7 days.

  • No security required

Placing a collateral or asset during the loan application process can be extremely challenging for many. For personal loans, lenders do not need any collateral or security. However, as no security is required, lenders may make up for their higher credit risk by charging higher personal loan interest rates than unsecured loan options.

  • No restriction on end usage of fund

This is one of the most important benefits of a personal loan. Unlike home loan, car loan or education loan, personal loan can be used for any purpose. There is no restriction where you want to use the loan proceeds. Owing to this reason, personal loan is categorised as one of the suitable ways of availing cash to mitigate urgent situations.

  • Flexible repayment tenure

Personal loan repayment tenure is flexible as it ranges anywhere from 1 to 5 years. Thus, you can simply select the repayment tenure based upon your repayment capacity. For choosing a feasible tenure, you can take the help of a personal loan EMI calculator. This calculator asks for 3 details – namely your required loan amount, offered interest rate and preferred repayment tenure. Upon filling the details, the personal loan EMI instantly displays. If the EMI and tenure are within the affordable limit, you can keep those details as your benchmark to select a suitable lender. However, if they are not, you can make changes to your added data to get an optimal result.

Ending note

A personal loan is a true companion offering flexible features. Availing a personal loan is easier for you if you have a good credit score and a sound employment record. What makes this credit option more captivating today is the choice to compare using the personal loan eligibility calculator. With this calculator, you can easily compare amongst the different personal loan offers to select the one offering optimal rates and features.

Melissa E. Romero

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