Over the years, the Indian economy has seen quite a good growth and its effects seem to have passed on to the personal finance sectors as well. As a result, how you used to get a personal loan approval has completely changed. In fact, personal loans have become one of the vital financial tools with the ease of application and disbursement.
If you meet the required personal loan eligibility criteria, then you can easily get the approval at lower personal loan interest rates. As a result, you can pay lower loan EMIs and manage the monthly expenses easily. You can also calculate personal loan EMI online these days with the help of the personal loan EMI calculator free at a lender’s website.
Here are some reasons for such immense popularity of personal loans. Read on!
Top Reasons That Made The Personal Loans a Hit Among Masses
1) Versatility of usage
Applying for a personal loan means that you can use the loan amount for a variety of reasons as per your convenience without restrictions. Most of the borrowers use the loan amount for weddings, business expansion, children’s higher education, medical emergencies, debt consolidation, and vacations and beyond. The versatility of the personal loan helping one using it as per one’s wishes made it extremely popular.
2) Instant approval and money disbursement
When someone is applying for a personal loan, it means that he/she needs the money quickly and can’t wait for ages. As a result, lenders understand this and cater to their needs by processing the loan applications super quick. It leads to a quick loan approval along with the faster disbursement. You can get the loan approval within 5 minutes and money disbursement within 24 hours – another reason making personal loans a success.
3) The convenience of flexi loan feature
Nobody wants to pay a higher amount during a month as the EMI and derail his/her other outlays. Lenders understand this, and reputed ones come with the facility of the flexi loan feature. This facility lets you pay only the interest as the EMI per month only on the utilized loan amount out of the credit limit. The rest of the money gets adjusted after the end of the loan tenor. This way, you can save up to 45% on EMI payments. Hence, being able to pay smaller EMIs to manage other outlays in life makes personal loans a smash hit.
4) Negligible documentation
Earlier, people did not want to apply for a personal loan due to the practice of presenting the creditor with a bucket of documents. Nowadays, lenders have simplified this. You only need to submit a few of your documents related to personal and income profiles. The furnishing of KYC documents, Salary Slips along with bank account statements should be fine to help you complete your documentation.
5) Flexible repayment tenor to help you pay smaller EMIs
Another reason why personal loans are a success in India and beyond is that a borrower is able to spread the loan cost over a convenient tenor. As a result, leading lenders let borrowers enjoy a hassle-free tenor ranging 1 year and 5 years. You can opt for one as per the repayment capacity and pay only a smaller tenor.
6) A higher loan amount
It is one of the biggest reasons for the incredible success of the personal loan facility in India. All reputed funding institutes can let you apply for as high as up to Rs.25 lakh to fund your multiple needs without having to look for any other financial alternatives. If you have maintained a strong CIBIL Score in the range of 700-750+, then you can get to enjoy lower personal loan interest rate.
7) Online account access
Being able to track all loan details via the digital customer portals of the lenders 24/7 is yet another reason for the popularity of the personal loan facility.
With so much going for the personal loan online facility, even you can apply for it online today and cover your needs super easy.
Bajaj Finserv offers pre-approved offers on personal loans, home loans, business loans, EMI finance, credit cards and more. It can simplify your loan formalities and make it less time-consuming. You can discover your pre-approved loan offers now by sharing your basic information such as name and mobile number.