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All You Need to Know Personal Loans

Want to go for your dream vacation, but are falling short of cash? Fret not, personal loans are the perfect solution to your problems. Personal loans can not only help you fulfill unforeseen expenditures, but can also help you help you fund your wedding, holiday, home renovation and so much more!

WHAT IS A PERSONAL LOAN?

Personal loans are typically a kind of credit that customers can take out to fulfill various personal reasons. Moreover, personal loans do not have a specific reason like home loans or car loans- they can be used to satisfy any purpose.

Personal loans work as installment loans; which depend on whether you are approved or eligible to receive the loan from your bank. When approved, you will receive a defined sum of cash which you are expected to repay on a monthly basis and in fixed amounts, until the loan expires.  

To determine whether you are eligible to receive a personal loan, lenders generally check your income, credit, and will examine your ability to afford the loan. Borrowers generally receive low interest rates for a high credit score.

Unsecured personal loans are an example of personal loans which allows you to avail a personal loan without pledging assets or collateral. This loan is contingent on the borrower’s creditworthiness. A high credit rating is vital to avail certain unsecured personal loans.

If you need cash urgently and without any difficulty, you can also avail pre approved personal loans. The only difference between a pre approved personal loans and a personal loans is that it is pre approved in nature, which means that you need only to apply and the loan is already pre approved to you. Thus, you can get your money, completely hassle- free.

WHY SHOULD YOU TAKE OUT A PERSONAL LOAN?

Taking out a personal loan may seem very daunting and adult-like, but in today’s digital world it is easy and extremely helpful in nature. Personal loans can also be relatively cheap loans as compared other forms of credit if you can afford to easily pay off the monthly installments for the duration of the loan.

Most personal loans come equipped with many features to help you fund your personal endeavors. They are:

Consolidate Debt:

Many of us may have different loans and outstanding credit debt that has diverse interest rates and balances due. Personal loans provide a solution to this problem- why not consolidate your debt into a single payment?  A personal loan ideally offers a lower interest rate as compared to the existing debt and thus permits you to pay off your debt faster, without getting overwhelmed.

Pay off Credit Cards:

One of the best benefits of personal loans is its low interest rates and that is why you can use this financial product to pay off your credit cards. With low interest rates, you not only reduce the interest you need pay, but also have a clear, finite end day in sight to pay off your debt.

Home Improvement:

If you do not want to pledge your home as an asset or rack up credit card debt for your home remodeling plans, personal loans are the best option. Personal loans further aid those who do not wish to have a home equity line of credit drawn up or do not have equity in their house. Want to remodel your kitchen, your bathroom, landscaping or hardscaping? Personal loans can help.

Finance your wedding and luxury holiday

Having trouble with your wedding expenses? You may want to consider taking out a personal loan before tying the knot. Personal loans can be used a big coupon to help you pay for your wedding venue, dress, décor and small expenses as well.

You may not need a personal loan for an average holiday, but what about your honeymoon or a luxury vacation? Fulfill your dreams of travelling and seeing the world with the help of a personal loan.

Emergency expenses and medical costs

Personal loans are definitely cheaper and far less risky as compared to other loans and thus can help to fund emergency expenses. There could be varying emergency expenses like medical emergencies, funeral expenses and more.

Other than emergency medical expenses, a personal loan can also help you pay your medical bills for fertility treatment, cosmetic treatments, dental work and others. Additional expenses like medical travel and aftercare can also be funded by a personal loan.

There exist many personal loans made available by different lenders and banks, but it is advised that you check the best personal loans to suit your needs. An example of a renowned personal loan is the loan provided by Kotak Mahindra Bank. Its many features include:

  • You can apply for a personal loan anywhere, even from the comforts of your home.
  • Fast customer service with minimal paperwork.
  • Avail for a loan from Rs. 50,000 to Rs. 15 lakh.
  • Calculate EMI with a Personal Loan EMI Calculator.
  • Quick disbursal of the loan.

To conclude, there may be various benefits and good reasons to take out a personal loan, but always keep in mind that you have to repay the loan. Personal loans may be a great way to make major purchases and pay off your debt, but always remember to use it responsibly.

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