Why is it Smart to Choose a Personal Loan Over a Secured Loan?

In comparison to other loan variants, a Personal Loan, owing to its unsecured nature, is easier to apply for and avail. It allows you to access money quickly, with some lenders giving you money in your bank on the day you apply. Availing a Personal Loan, not only gives you money in your account in 24 hours but also offers you cash up to Rs.25 lakh. Additionally, there is no restriction on how you use this collateral-free loan. 

Take a look at why taking an Unsecured Personal Loan is better than choosing a secured loan. 

It Offers Quick Application

Apart from the high amount, this Personal Loan comes with other facilities that add convenience to your borrowing experience. You can apply easily using the online application form. Enter your details and get approval within minutes of applying. You only have to submit basic documents such as KYC documents, employee ID, salary slips and bank account statements. This minimal documentation enhances the ease of application. As there is no collateral, you don’t have to submit any paperwork pertaining to it. In turn, the approval process is quicker.

It’s Easy to Qualify For 

You can qualify for this loan by meeting easy eligibility criteria. Apart from being a citizen of India and between 25 and 58 years of age, you must earn a regular income as a salaried or a self-employed professional. Once you meet these basic terms, check the minimum salary requirement based on the city of your residence. Use the eligibility calculator, enter a few details and check whether or not you qualify. Besides, you will also be able to see the amount that you qualify for. 

It gives you ample funds for a variety of expenses 

Not only does this Personal Loan come with a nominal interest rate, but it also offers you the ability to fund a range of needs quickly, as there is no restriction on how you can use the loan amount. You can use it to pay for your child’s tuition fees, fund immediate repairs at home, or pay for a medical emergency without any delay. 

It offers flexible repayment via a Flexi Loan facility 

If you avail the Personal Loan as a Flexi Loan, you only have to pay interest on the amount that you use, and not the total sanction. More importantly, you can choose to pay interest-only EMIs and repay the principal at the end of the tenor. This makes repayment extremely convenient. 

How to be smart when choosing a Personal Loan

Since you can get a Personal Loan from a variety of financial institutions, here’s how to get an affordable and hassle-free Personal Loan:
  • Check eligibility terms and choose a lender who offers quick sanction with minimal paperwork
  • Find a lender who is transparent about additional costs
  • Check for low prepayment and foreclosure charges
  • Pick a lender who permits online loan application
  • Choose a loan that offers you additional benefits such as a top-up loan, insurance, etc.
  • Avail a loan that you can manage and track online
With so many features on offer, it is evident that an unsecured loan trumps a secure loan. You expedite the process even more by checking your Personal Loan pre-approved offer from NBFCs. All you have to do is enter your basic details and avail instant financing with your pre-approved offer. 

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