Check out the Reasons Why Personal Loan Is So Popular in India
The Indian economy has seen enormous growth in the past couple of years. The effect of this growth can also be seen in the personal finance sector as the number of people applying for a personal loan in India has been on a steady rise.
When you require urgent finance, a personal loan can fulfil all your monetary requirements. With numerous financial institutions offering said loan, you can easily apply for a personal loan either by visiting your chosen lender or online.
Nowadays, applying for a personal loan online has become more convenient as you can complete the entire process from the comfort of your home. Before, applying for the loan, you should check your personal loan eligibility with your lender to know if you fit the bill, especially in terms of your income and employment. Once you meet the personal loan eligibility criteria, you can apply and use the approved loan amount for all your financial needs.
Reasons Why Personal Loans in India have become a Huge Hit
- Multiple usages
You can use the approved instant personal loan amount for a variety of end-purposes, unlike home loans or car loans which can only be used for a specific goal. Weddings, medical emergencies, renovating your home, funding vacations- a personal loan can be used for a plethora of things. The versatility of a personal loan is one of the biggest reasons behind its popularity.
- Minimal documentation
To get an instant personal loan, you do not require submitting a large number of documents. Financial lenders don’t need any verification of assets for personal loans, as is the case for home loans. If you want a personal loan, you generally need to submit your identification proof, address proof, and your income proof. This has encouraged more people to opt for an instant personal loan in their hour of need.
- Debt consolidation
One of the most crucial reasons why personal loans have become popular is because they help with debt consolidation. Many people opt for a personal loan to pay off higher-interest credit card debt. You can also use the personal loan amount to foreclose other loans rather than juggle with multiple EMIs.
- No collateral needed
Personal loans usually are unsecured loans, meaning that you don’t need to provide any asset or collateral to avail it. The only crucial factor taken into account by the lender is your repayment ability and credit history. As a borrower is not required to offer any security, many find a personal loan convenient.
Furthermore, a personal loan for self-employed as well as salaried individuals is both made available by financial lenders. Before you apply for a personal loan online or offline, always make it a point to compare personal loan interest rates so that you can choose the one that best suits you. Also, use the personal loan EMI calculator offered by lenders on their website to manage your monthly expenses better.
The reasons mentioned above is why a personal loan has become the go-to choice for many in India. And, given their soaring popularity, they are here to stay!