Advantages of Personal Loan To Raise Funds
November 18, 2019
In case of any financial emergency, availing of a Personal Loan is a great way to get the necessary funds. It is easy to get, and you the flexibility to repay it in smaller Equated Monthly Instalments (EMIs). Read on to know more about the benefits of Personal Loans.
You may have read online or heard people saying that getting a Personal Loan is one of the best ways to get quick money for immediate financial needs. Well, what you may have heard or read could be true because applying for a Personal Loan is a convenient way to raise funds.
Some of the significant benefits of taking Personal Loan to raise funds are:
No restrictions on the fund usage
Unlike other types of loans like Home Loan or Auto Loan, which are supposed to be used for a specific purpose, the funds you get from a Personal Loan can be used for any purpose you want. The lenders generally don’t have any restrictions on the end usage of the funds, unless you use it for any illegal purchase or other unlawful activity. You can use the money to fund your dream vacation, renovate your home, expand your business, buy business machinery or expensive furniture for your home.
No security or collateral needed
This is one of the most significant features of Personal Loan. Being an unsecured loan, you need not provide any guarantee or security against the amount you borrow. This means you don’t have to risk losing your asset if you default on the repayment.
Quick disbursal process
If you meet the lender’s eligibility criteria and have a good credit score, you can get your loan approved within two to three days. In fact, some lenders who offer online services allow you to apply online, and if they are satisfied with your repayment capacity, they disburse the amount on the same day (up to a specific limit).
Fixed interest rate
Generally, most lenders in India provide Personal Loan on a fixed interest rate basis. Irrespective of the tenure you choose, the interest remains the same, which means you need not worry about the fluctuations in the interest due to changing market conditions.
Flexibility of tenure
Another critical Personal Loan benefit is that you have the liberty to choose the loan duration as per your repayment capacity. Typically, the Personal Loan term goes up to five years. A longer period means lower EMI, which you can quickly repay. You can use the online EMI calculator to determine the loan duration based on the maximum EMI you can afford to repay every month.
No matter if you are a salaried employee or a self-employed professional, you would surely want to save your taxes. If you use a Personal Loan for home construction, home renovation or paying the down payment for the home, you can file for tax deduction under Section 24B up to a maximum limit of Rs 2 lakh. But, to avail of the benefit, you must provide sufficient documents to prove that you have used the money for that purpose.
With so many advantages of Personal Loan, applying for a Personal Loan online is a great way to raise funds for immediate financial requirements. Make sure that you compare the offers from different lenders and choose the best lender with a low-interest rate and excellent customer service.
Click here to apply for a Personal Loan.