How To Get A Personal Loan

March 28, 2019 Off By admin

Personal loan is a good idea to deal with short-term financial crisis. People, who are in urgent need of money, prefer personal loan because getting it is easier than other kind of loans. You can pay your college fee, buy a car, pay hospital bills, etc. with the help of it. However, everything, which is considered good also, has some bad effects and same is in this case. Personal loans do have some pros and cons that are listed in this article.

Advantages

* Availing a personal loan is much easier than other kinds of loans.
* Getting it does not require any kind of security.
* While applying for the it, you can direct contact with the loan provider (bank or private loan provider), which means you do not need to waste time with agents.
* It provides you easy repayment modes. You can repay the loan amount in maximum of 60 months.
* You can easily get a minimum of 10 thousands to 10 lakhs INR as personal loan to fulfill your requirements.
* It is quicker than a credit card.

Disadvantages

* As there is no security required for availing personal loan, eligibility criteria for getting it becomes tough than of other types of loans.
* Banks and private loan provider are most strict pertaining documents availability as they are taking risk of lending money without any security.
* Identification checks are hard and there is no compromise in the identification proofs. You need to bear high interest rate. Depending on the loan amount and your relations with the loan provider, the interest rate can be in between 12 % to 30 %.
* You have to pay high service charges.
* You have to bear high penalty charges in case you delay the loan payment.
* You have to face tough capability check. If you are working with a reputed company then getting a personal loan becomes easy than the person whose organization does not come in the approved organizations list of the bank or loan provider.

Besides the fact that interest rate in personal loan is much higher than of any other loan say home loan, educational loan, etc. but people still prefer personal loan because it helps them come out of the short-term money crisis.