Why Personal Loan Good For You?

Personal loans, also known as unsecured loans, can help you fund a large expense or consolidate debt without requiring the use of collateral. Personal loan acknowledged for personal (medical), children's higher education, medical contingencies, household expense or commercial use. Personal loans are also useful when it comes to investing in business, fixing your car, down payment of new house, etc.

Benefits From Personal Loan

Complete flexibility of end-use-  The first and the most important benefit of personal loan is that it can be used for any purpose like for education, medical, wedding etc. A personal loan allows you the freedom to use the money in any way you want.

No collateral required–  You do not have to arrange for any collateral. It is an unsecured loan, so it is easy to get it.

The amount and the tenure- Personal loans are being offered from the bank to 15 to 20 lacs for the bank. Through EMI you can Repayment and this option is available for anyone. The duration of the loan can depend on the amount borrowed and it can be from 1 year-5 years. Instead of borrowing cash from credit card, it is always advisable to take a personal loan because the interest rate for the first person is relatively low.

Schemes and Offers – For professionals, such as chartered accountants, doctors and architects; many banks and financial instruction announce special offer and special scheme for personal loan.

Fixed rate of interest- Personal loans are usually available at fixed rate of interest. Then the same monthly installments will be fixed for the entire loan period.

How To Make The Best Use Of Personal Loan

1. Use personal loans to strengthen your debt portfolio

 Say you have many short-term loans in the portfolio, some of these can be from credit card. You can take a personal loan and add all these loans to a medium-term loan. An advantage here is that you can negotiate at a better interest rate than you are currently paying. The second advantage is that it will improve your credit rating and credit score. If you have a high-interest loan, it looks bad on your credit record.

2.Pay for a Wedding

Any major event  like marriage– qualifies,  if you put all relevant fees on your credit card without paying them within a month. In this way a personal loan for a large expense can save you a considerable amount of interest, provided he has a lower rate than your credit card.

3.Fund your education needs. 

Student loans can provide some financial relief. Your student loan interest rate can be high, depending on the type of loan you have. But you may be able to get a personal loan with a lower interest rate which allows you to pay your loan faster.

4.Improve your credit score with CIBIL.

A personal loan might help to improve your credit score.Your loan profile improves over five years of personal loan, it makes a better mix. Financial institutions then see you as a stable creditor who can cope with long-term financial commitments. It also works in another way, with personal loans, you can reduce your credit card expenses, so you have a low credit usage ratio. This will help your credit score.

Personal Loan is good for anyone in many ways but for this  you need to keep your credit score healthy and when you credit score is healthy you can apply online for personal loan from anywhere.