Life is full of unpredictable twists and turns, and you cannot plan for every situation in advance. Financial emergencies are the most familiar and common situations that take away your peace of mind. A personal loan can really come in handy to overcome the situations of a lack of money. By definition, these are short or medium-term unsecured loans whose main purpose is to meet the financial urgency. These loans can be taken for a number of reasons, right from higher education, weddings, house renovations, holiday trips to buying expensive tools for business.
The features and benefits that come as part and parcel of the personal loan makes it a viable option for fulfilling your financial interests. Here’s a brief idea of the features and benefits of these loans that make it the option of choice to ease up the flow of cash during the tough times.
No need for a collateral
As mentioned earlier, a personal loan is an unsecured loan, which means that you do not need to keep any of your assets as collateral. These are loans that are offered based on your credit history. You will have no problem in getting the money that you need if you have paid all the credit card bills and have not defaulted on the payments of the earlier loans.
Low rates of interest
Interest rates for the personal loan in India are set according to the salary of the customer, the tenure of the loan, the amount borrowed, and a few other criterions that differ from one lender to another. The interest rates for personal loans are different for different lenders. It is basically decided on the basis of the nature of employment, monthly income, and credit score. However, regardless of all the factors, the lenders usually keep the rates quite low at three to five percent keeping your financial interests in mind.
The flexibility of tenure
You can get these loans according to the time of your requirement. The repayment period remains fixed, and it varies from one to five years. The rule of the thumb is that the loans offered for a longer duration have a higher interest rate and vice versa. So, if you want to fulfill your financial interests, it will be wise to go for the shorter duration of repayment along with an interest rate that you can afford.
The arrangement of quick cash
Most of the lenders for online loan operate online now. Thus, all the work, from submitting the application to getting the cash, are carried out online now. You will get the amount transferred to your account within two to three days. In some cases, you can even get the amount transferred on the same day. Thus, you no longer need to sit and worry about cash anyone once you apply for personal loans.
The tax benefits associated with it
If the personal loans are used for house renovation or making the down payment for a house, you can avail a sizeable amount in a tax deduction in that financial year. You will only have to submit the right documents to show that you have used the money for that purpose only. So, in terms of fulfilling your financial interests, these loans also take care of your taxes.
You can avail these loans for any number of reasons but make sure that you pay it back in time. Timely repayment helps in building a good credit history and increases the credit scores further. Thus, whenever a financial crisis arises, you will be able to rely on taking a personal loan.