Personal Loan over Other Credit Options: Benefits and Requirements

We all have needs and goals that stay unfulfilled because of the gap that exists between our dreams and reality. This is where; Personal Loan can help in making difference in your life. Regardless of what your money related needs are - unforeseen costs, wedding in the family, home change or whatever the event, Personal Loans can help you with addressing your needs.


We’ve all been there. We need to buy something but we don’t have the requisite cash. While your immediate reaction may be to charge it on your credit card, another option to consider is the more traditional, but often overlooked, personal loan. We often have clients that go to the bank to apply for a credit card for the reward benefits, or a line of credit for the low interest rate. More often than not, however, people forget about the third financing option – the personal loan. You can choose from a plethora of loan options ranging from ICICI Bank personal loan, HDFC Bank Personal Loan, Axis Bank personal loan, etc.


Let’s take a look at few reasons why a personal loan may be a better option to finance your needs.

• Peace of Mind: Lump sum of money up front, option to pay it back over a fixed term - typically a period of one to five years, negotiable loan rates, which is a major advantage of choosing a personal loan over other finance options, are some of the reasons which gives you much needed peace of mind
• Easy to Budge: Fixed payments on your personal loan make sticking to a monthly budget an easy task i.e. the payments remain the same each and every month.
• Lower Rates: The interest rate is much lower than a credit card. Who wants to pay upto 40% on a credit card? Definitely none of us. A personal loan is a great financing option if you need a lump sum of money right away and you can afford to make payments to repay the loan over time. The interest rates personal loans interest rates are substantially lower than the interest rates on credit cards. Interest rates on personal loans are also negotiable with your bank, whereas interest rates on credit cards are not. Bottom line? If it’s going to take you a few years to pay off the debt, go with a personal loan and you’ll save in interest.

Today, there are many Banks that have minimal paperwork requirement before approval. If you want to have guaranteed personal loan approval you must be able to fulfill all or some of the following conditions:

1. Have a good credit history. If you are not sure about your credit score, before you apply for a loan, get a CIBIL SCORE which will show your status.
2. If you do not have a good credit record, do some credit repair. There are various guides on the our other articles that can show you how to do this.
3. Have some property or assets that you can provide as security, especially if you want a large personal loan and particularly if your credit history is not perfect.
4. Be able to provide all the paper work which the bank or lender may ask from you. This is normally proof of employment.

So what are you waiting for: Search, Compare, Apply and it’s done. Banknomics, where ‘U’ Come First.