Personal loans have become the go-to option for most working professionals in India in the past few years. Why? Because they allow you to put the funds to a variety of uses.
These loans are a Godsend in times of crisis if you know how to use them well. The benefits of these loans, such as competitive personal loan interest rates and flexible EMI repayments, outweigh the risks, making them a more borrower-friendly option.
Personal finance also involves a seamless application process, ideal for fulfilling your urgent financial obligations like a medical emergency. Whether you want to consolidate credit card debt, finance a big-ticket purchase, or take a vacation, personal finance is also suitable in any scenario.
This is perhaps why working professionals in India are more inclined towards personal finance. Let’s explore in detail below.
Relaxed eligibility criteria
First off, personal finance is more easily accessible than other loans. While most personal loan eligibility criteria are typically straightforward, they differ between salaried professionals and self-employed ones.
Here are the standard eligibility terms followed by most lenders:
- You must have at least one year of work experience under your belt, or you must be in business for a minimum of two years.
- You must have a minimum monthly income of Rs 5000 or above.
- Your age must be between 22 and 58 years.
- It would help if you had a CIBIL score of 700 or more
No collateral needed
Are you hesitant to take a loan because of the collateral? Fret not! Since personal finance is a form of unsecured loan, you don’t need to pledge any security or surrender an asset to borrow it. All you need is a decent CIBIL score to prove your creditworthiness to the lender, and you’re good to go. This is one of the primary reasons personal finance is an attractive borrowing option for the younger lot.
Paying the entire loan amount is no easy task, which is why personal finance typically comes with a flexible repayment tenure. Hence, you can pay the monthly installments comfortably by choosing the assignment according to your loan repayment capacity. Some lenders even provide multiple repayment options to ease your EMI burden.
Another benefit of opting for personal finance is the minimal paperwork involved. Most lenders will only ask for a few documents before approving your loan.
What’s more, if you apply online, you can upload the scanned copies of the documents from the comfort of your home and wait for verification and approval. Online applications are processed and approved in a matter of days, so you get the funds in no time.
In a nutshell
In addition to the benefits mentioned above, many other factors make personal finance a popular option among the working population. So, if you are thinking of applying for a loan, look for a reliable lender that offers attractive interest rates, hassle-free processing, and excellent after-sales service.
While you’re at it, you can use a personal loan EMI calculator to understand your monthly EMI obligations before applying to plan and keep your finances in check.