Flexibly taking care of one’s aspirations is the need of the hour and personal loans can play a vital part in this regard. Or can they? Regular personal loans may not be as flexible as you wish; firstly you will have to apply outright for a specified amount and pay the EMI which includes both principal and interest components. There is no provision of using money based on one’s ever changing requirements.
Finance management and fulfillment of aspirations are major things that need to be balanced by millennials. However finding the right balance is often an issue. While there are dreams galore, earnings may often fall short with regard to fulfilling them. There may be financial crises for which one’s income falls short or there may be expenditure which is sudden and not as per plan. In a scenario where the banking sector is steadily going digital, even hoarding cash for emergencies is not a viable option anymore.
Personal loans do not require any collateral and are easier to obtain in comparison to other loans. Personal loans can be used for several requirements right from weddings and debt consolidation to utilizing a new investment opportunity, paying for higher education, paying for a holiday with the family and even home renovation and repairs. Most financial institutions offer regular personal loans but one should try looking for flexible personal loans.
How are these different? These personal loans come with an additional benefit which enables borrowers to take care of expenditure over a sustained period of time. Flexible personal loans help customers to get a credit line for a pre-decided amount. They withdraw money anytime based on the actual amounts they need at any given point of time. They pay interest only on the amount that is used. The monthly EMI comprises only of interest while the principal can be repaid when the tenor ends. Customers can prepay any amount conveniently while making deposits/withdrawals anytime into the loan account.
One can pre-pay and again use the prepaid amount if needed in the future. The flexible personal loan can also be switched into a regular personal loan anytime throughout the loan tenor or when the tenor ends and repaying the entire principal amount is difficult. This personal loan type benefits those who wish to get a lump sum amount for meeting expenses over a long period of time and the application procedure is easy enough so it also benefits professionals with hectic lifestyles. Mostly KYC documents are required along with bank statements and salary slips if the customer is eligible to get a flexible personal loan.