Ways To Apply For A Personal Loan & The Reasons To Opt For This Loan.

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28 February 2023

Finance

Personal Loan

In the present-day’s scenario, you may come across instances of unanticipated expenses. Going for an instant loan is the simplest way to tide over such a crisis.

This kind of financial help does not include any security or collateral but comes with a high rate of interest and charges. For instance, suppose you opt for availing an HDFC personal loan through its website, now as it is instant in nature you will find that the loan’s rate will be higher than its regular counterpart. And to check the HDFC personal loan status, you may have to call on the bank or email to understand where your application is stuck.

Once approved, you will receive a monthly HDFC personal loan statement denoting how much you must pay monthly and how much amount on your personal loan is outstanding. 

Read On To Know How You Can Apply For An Instant Personal Loan!

What Are Instant Loans?

A quick loan is a kind of credit that permits you to avail of a loan in a short time period with minimal steps. Through this, you can get instant funds in your bank at a rate of interest that is competitive with rates levied by other loan sources.

Instant loans may extremely be helpful in scenarios of the immediate requirement of funds like medical payments, tuition fees, marriage-linked expenses, and a few instant buys.

However, you can even opt for such loans in the case when you need to make a one-time payment and want to repay the same back in EMI form like in the scenario of a vacation or when purchasing a bike. 

What Are The Reasons For Availing Of A Personal Loan?

Availing Of A Personal Loan

1. Professional or educational expenditures 

At times you might have to buy a laptop or have an awaiting assessment coming up for which you may require incurring additional expenses. An instant personal loan can assist you with such expenditures. 

2. Healthcare exigencies

There may be times when you may witness healthcare exigencies and require immediate funds. Insurance policies might not cover every healthcare process. Few treatments and diseases that you may require are not covered by such policies. An instant loan for a healthcare exigency is one of the best solutions in such cases. You can use the loan fund to pay for any healthcare expenses or therapies you may require. 

3. Going on a trip

Traveling to different places might often refresh your soul and assist you to break through the monotony of regular activities. Making daily savings for such holiday plans where you can aspire to build a good and healthy amount to make payment for the trip is always a good wise decision. 

However, making advance reservations for these expenses, especially hotels, and flights, can assist you to save a considerable amount of funds, hence lowering your thorough travel expense. To make such kind of advance payments, you can opt for an instant personal loan for travel and pay back the loan with savings later. 

4. Clear your credit card dues

A personal loan can come across as a good medium to clear off your high card dues as interest rates on a personal loan are considerably lower in the range of anywhere between 10 percent and 24 percent per annum compared to credit card finance charges of anywhere between 24 percent and 54 percent per annum.

Thus, you might consider availing of a low-interest personal loan to repay your credit card dues. However, there are even credit risks involved. For example, availing of a personal loan can result in more debt. So, use the same only if you have no other financial choices, like the opening of a balance transfer credit card option. 

5. Improving credit score

A personal loan may assist you to increase your credit score. However, the crucial thing to consider here is timely repayments. Every time you successfully pay your debt timely, you will view that your score will stabilize and ameliorate over time. 

6. Wedding expenditures

Wedding is a big deal in India, and many tend to splurge a great lot of money on wedding festivities. Marriage expenditures can sometimes run beyond the budget owing to the desire to celebrate in an extravagant manner possible.

In place of being financially stressed owing to this, you can avail of a personal loan to cover your wedding expenses and then pay back the loan in a monthly manner. However, being prudent financially during any celebration is a very wise habit. Availing of a loan to celebrate might seem simple but making repayment timely, especially when the family expands might be tough. 

What Are The Important Things You Must Know About Loans?

Know About Loans

Here are some of the important things you must be aware of regarding instant loans before you place an application for such kinds of financial help – 

A. High credit score – 

Having a high credit score of 750 and above will assist you to get quick approvals. Individuals who maintain a high score will even get a low rate of interest and favorable loan tenure. 

B. Processing charges – 

Many financial institutions levy a processing charge while processing the loan. You can check out the fees and charges before applying and then accordingly decide. 

C. Compare The Rate Of Interest Of Distinct Financial Institutions – 

It is important to compare the rate of interest offered by various lenders. It will assist you as a borrower in taking more efficient decisions that is in alignment with your repayment potential. 

D. Simple EMI repayments – 

Many of the online platforms provide easy EMI repayments for the loan – these permit you as a borrower to repay the money in comfortable, small amounts. 

E. Minimal documentation – 

Unlike traditional loans, instant loans include minimal or zero paperwork and can be taken up from the convenience and comfort of your home. 

F. Free early closure – 

Few platforms even provide free early loan closures i.e., you can pay back the amount earlier than the tenure you had selected initially, permitting you to not repay any further interest constituent. 

Read Also:

Arnab is a professional blogger, having an enormous interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, He carries out sharing sentient blogs.

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