The emergence of Personal Loans has completely transformed the way in which current generation meets their lifestyle aspirations or the way in which financial support is availed in the time of need.. With advent of digital lenders, internet penetration and advanced smartphones, taking personal loan is no more a hassle. It has become so much easier to get quick cash and at flexible terms & conditions, that meeting lifestyle requirement by obtaining credit has become a new way of life. These pocket-friendly, low-interest and collateral-free loans have steadily fuelled new generation’s self- esteem to enhance their financial capability.
Be it home renovation, debt consolidation, birthday or mid-year celebration, sudden weekend plan or any such sudden cost intensive need, Personal Loans have now turned into a one-stop solution to all your financial needs. Hence, it is no surprise that, as on June 2018, outstanding Personal Loan with Indian banks was approximately Rs.20 lakh crore!
In addition to being your bad weather friend, here’s why an a Personal Loan can be beneficial for you. Here are 5 ways Personal Loan helps you directly/ indirectly :
- Can be put to Multiple Uses:
A Personal Loan is an unsecured loan – no hypothecation. Unlike car loans, which can only be used to purchase a vehicle, personal loans can typically be used for any legitimate reason. Whether you are planning to buy an electronic appliance, finance your home renovation, pay off credit card debt or take care of unexpected medical emergencies – a personal loan can help you cover almost anything under the sun! As long as you have the capability to repay and intention to pay back, lending institutions shall not have any hiccups in giving the loan. LoanTap helps you choose a revolving credit kind of facility by taking Personal Overdraft Loan. Not sure how much money you will need? You get a pre-approved credit limit. Withdraw in tranches and pay interest only on the withdrawn amount. Repay back the money without any charges to replenish your credit limit.
- Offers better financial discipline than credit card:
Got a job, got a new credit card? One, two or perhaps more in the wallet! But to what extent will you use them? To manage your finance wisely, it is suggested that one should not spend more than 20-30% of the credit card. So, if you need more amount and you are sure that one month is not the time-frame you are looking at, to pay back the credit withdrawn, you can choose Advance Salary Loan! You take up to 2.5 x of your monthly net salary and pay back in 12 months! This helps you build financial discipline as well as does not impact your credit score negatively.
- Flexible Repayment Options with long repayment terms:
Personal loans can be taken for longer tenure. You choose the tenure for which you want to take a loan. At LoanTap, even personal loan has been customized to help you meet different requirements. We just mentioned about Advance Salary Loan. But, if you need loan for a higher amount and longer tenure, there are EMI Free Loans as well. EMI Free Loan helps you lower monthly instalment up to 40%. You service only interest on monthly basis (for 5 months each) and pay equal bullet amounts for Principal repayment, every 6 months. Another big benefit of personal loans is that they provide long tenure to repay. Hence, ease of repayment increases even with a higher loan amount.
- Helps build/improve credit score:
Everyone is aware about CIBIL score or credit bureau scores that are used to assess one’s credit profile. If you are planning to buy a home one day and apply for a home loan, your credit bureau score will most certainly be assessed. This score would narrate the tale of your repayment capacity and financial discipline. While a high score would enable you to get a home loan faster and at better rates, a low score may lead to a loan offer with somewhat different terms. The flexible repayment terms and longer tenure facilitate timely repayment. This eventually builds and improves your credit score.
- Builds self-reliance:
Being independent is a feeling closer to self-actualization. When LoanTap can offer you a Personal Loan within 24-36 hours of application, you do not have to ask for money from anyone even in case of emergency. Also, instead of utilizing your savings, repaying the money through instalments may seem to be better choice.
There are many advantages of taking Personal Loan from LoanTap. You can lower your instalment by taking EMI Free Loan. Part-pay or pre-pay at your convenience after 6 months of servicing the loan. Take longer tenure loans if you want to pay lower instalment towards personal loan’s EMI or choose Personal overdraft if you want to use loan like your credit card.
At LoanTap, we understand you like no one else. All you have to do is to check your eligibility, know your provisional loan amount instantly, upload documents and get a personal loan within 24-36 hours.