There are several situations where one might feel helpless from a financial perspective. This includes emergencies which do not come with adequate warnings, sudden costs which have not been forecasted previously and more. At these times, most people dip into their savings to fix the problem. However, this should not always be the last resort.
You can always try a personal loan when it comes to taking care of unforeseen expenses and managing your financial situation with aplomb. Personal loans are easier to obtain than many other loans. They are unsecured loans, i.e. no collateral/security is required. As a result, the rates of interest are a little higher as compared to other loans like car loans and home loans. However, these rates are lower than those charged by credit card companies.
Personal loans come with ample flexibility when it comes to using the funds in the way you want. You do not have to declare the purpose of the loan to your lender. Personal loans come in handy for several reasons like higher education of children, weddings, vacations, down payments for new properties, home renovation/repairs, transfer/consolidation of previous debt with high interest, medical emergencies, new business funding, buying appliances and jewellery purchases to name a few.
You have to be an Indian citizen in order to be eligible for a personal loan and you should be between 25-58 years of age. You should be employed with a private/public sector organization and the minimum salary varies based on the city you live in. Personal loans come with minimal documentation requirements. You will only require your salary slips, bank statements, employee ID, ID proof, age proof and address proof. The personal loan tenor usually ranges between 12-60 months. You can borrow high amounts up to Rs. 25 lakh. The maximum threshold depends on the lender and your income eligibility.
Personal loans also come with fast disbursal and approval. You can also check out more flexible options that are offered by some lenders. These include a Personal Credit Line from where you can withdraw funds based on your requirements and pay interest on the amount that is utilized. You can always use a personal loan EMI calculator to work out the monthly repayment amount.