Personal loans have become popular in recent times. People take personal loans for meeting medical emergencies and other financial requirements.
An instant personal loan is one of the best financing solutions in case of cash crunch and debt liquidity issues.
There are a lot of reasons to take a personal loan. You can use a personal loan to pay for your credit card bills, wedding expenses, medical emergencies and many more.
If you want to avail a personal loan, you need to meet the personal loan eligibility criteria. Lenders also offer instant personal loans for low salary earners based on their monthly income.
Let us take a look at the things that you can finance with a personal loan and its advantages.
Purposes That You Can Finance With An Instant personal loan
There are various purposes for which you can use a personal loan. A few of them include:
- Pay your credit card bills
- Finance home renovation and improvement
- Pay for medical expenses
- Pay for wedding expenses
- Buy a car or an asset
- Finance your start-up
- Consolidate your debt
- Go on a vacation
- Funding educational needs
- Festival shopping, and more
5 Benefits of Financing with An Instant Personal Loan
There are many merits of an instant personal loan. Following are the top 5 benefits of an instant personal loan:
- Free of collateral and guarantee protection
An instant personal loan is an unsecured loan. It is easier to avail of from a bank or financial institution as it does not involve any collateral or guarantee protection. It is being issued on the basis of your credit score. Having a CIBIL score of 750 and above can get you a higher amount of instant personal loan. You can also negotiate on the interest component of the loan basis your credit history.
- Faster and easy financing
As the name suggests, it is a quick loan. Once you apply for an instant personal loan, it involves a fast procedure. It is a convenient process, and you can apply online for an instant personal loan from any place. It helps in saving your time and efforts.
- Flexibility of repayment and loan tenor
Personal loans are more flexible in repayment than other loans. You can repay a personal loan in equated monthly instalments (EMIs). The repayment terms are flexible, and you can choose the EMI and tenor as per your finances.
- No restrictions on usage of loan funds
One of the biggest advantages of an instant personal loan is that you can use the funds for any purpose like wedding expenses, home renovation, medical expenses and many others. There are almost no restrictions on the use of instant personal loans.
- Minimal documentation
Paperwork is less in a personal loan as you do not have to provide more documents or any collateral/security. The processing of an instant personal loan is faster and easier than other loans as it requires least documentation. You need to submit the filled application form, your KYC documents and bank account statements.
Though there are plenty of advantages and reasons for availing an instant personal loan, you should take time before making a decision.
You should not forget that a personal loan is a debt and comes with the responsibility of repayment.