Top 6 advantages of applying for a personal loan in India

Last Updated on February 22, 2022 by azamqasim92

One of the first and most popular loan options that come to our mind when we need urgent funds during financial shortfalls is a personal loan. There are lots of banks, NBFCs, fintech etc., that offer this loan option to a wide range of consumer categories, as salaried, self-employed and professionals. Irrespective of the reason for which you need funds in life, personal loans have an answer for everything, thanks to zero restriction on the end usage of funds.

So let us all have a glance at few of the top advantages of taking a personal loan in India:

Zero collateral requirement

Personal loans are a credit option that is unsecured in nature, implying that no security, guarantee or collateral is required to avail this personal loan, whether it’s taken by professionals like lawyers, doctors etc. or self-employed and salaried employees. Hence, when applying for Navi Personal Loan, remember that it does not involve any requirement of pledging any form of security like collateral or security to avail the loan. The presence of this crucial benefit is what acts as a key facilitator for offering quick disbursal of funds through a personal loan. 

Quick disbursal of funds

Another prime benefit of personal loans is their quick disbursal of funds, which makes them a popular and suitable loan option for anyone who needs urgent monetary funds to tackle situations such as a medical emergency or unplanned necessary expenditure like a trip abroad or home renovation. More often than not, most personal loans, including Paytm personal loans, are disbursed within a few days or even a few hours of getting the application.

Minimal and simple documentation

Given their extreme ease of access and simple product nature, personal loans tend to usually require a minimal level of documentation, such as income and identity proofs. However, the requirement depends on varying eligibility creation set by lenders and their documentation requirements of them. Such benefit of minimal documentation is what enables personal loans to offer a smooth and hassle-free process to the applicant. Moreover, once the verification of the required documents and other formalities is completed successfully, most personal loan disbursals don’t take much time and are usually quickly done. All you need to ensure is that you are ready with adequate documentation when submitting an application for Paytm personal loan.

Zero restriction on end usage of the loan amount

One of the key highlights of Navi Personal Loan is the presence of zero restriction on the end usage of the loan amount. It’s amongst the biggest advantages that work in favour of personal loans. The loan amount availed by the borrower can be used for almost any purpose (except speculative purposes), like tackling wedding expenses, medical emergencies, home renovation, business expansion, holidays abroad, etc. 

A wide array of choices amongst lenders

With a wide range of personal loan options from lenders like Paytm Personal Loan, it becomes imperative for applicants to first check and comprehensively compare amongst as many lenders as possible, basis offered interest rates and other features like tenure, processing fees, tenure, amount etc., before zeroing in on any particular lender. Ensure to do adequate research and then apply for the most suitable lender whose eligibility criterion and offer match your requirement and financial position. You can start by checking with your existing lender, with whom you have an existing customer relationship like a savings account, loan, credit card, fixed deposit, current account etc. When you know the personal loan offer they have for you, you can compare those offers with other prospective lenders and then go ahead with the best deal as per your credit score, income, employer and job profile, age etc. Moreover, when comparing multiple lenders, compare on the basis of numerous parameters like interest rate, loan amount, processing fees, repayment tenure, prepayment fees etc. Also, do not ignore the prospects of exploring Navi Personal Loan.

Additionally, remember that personal loans are only given after the credit evaluation process of a prospective borrower, besides being based on the risk appetite of lenders. Since all these criteria vary widely amongst numerous lenders, even the chances of personal loan application’s approval or rejection and the interest rate and deal offered would vary to a great extent. All this makes it prudent for applicants to exhaustively compare amongst a wide range of lenders in order to get the best personal loan deal, as per your loan eligibility.

EMI calculator facility

Not known to many, this feature of personal loans often turns out to be beneficial for prospective borrowers. The presence of the EMI calculator tool greatly helps applicants to check their EMI affordability before submitting an application for Paytm personal loan. Basis your chosen tenure, amount and interest rate, the EMI would vary, for which the calculator can help you get a fair estimate. Hence, before submitting an application for a personal loan, don’t ignore this tool and maximise its benefits and then submit a Navi Personal Loan application. Moreover, avoid opting for an aggressive repayment schedule by choosing short loan repayment tenure, as even if this leads to lower overall interest cost, it can result in stressing your financial health due to outgo of a higher amount of EMIs,  which can burn a deep hole in your pocket too. At worst, it can force you to avail of costlier loans to tackle unforeseen financial exigencies or even achieve important financial goals of life for which financial contributions were otherwise required.

Things to keep in mind always before applying for a personal loan

Although there’s no doubt that the unsecured nature of Paytm personal loans makes lenders tread cautiously while evaluating personal loan applications, there are some crucial steps that you can take to boost approval chances and eligibility. These include habits like checking your credit score and taking corrective steps to improve it if required, restricting monthly loan repayment obligations within 50% of net or gross monthly income, avoiding submitting multiple loan applications to lenders, especially within a short time span and refraining from frequent job switches when going for submitting an application for Navi Personal Loan.

Read More: Some Benefits of Getting A Loan