Are you sunk in debts? Does your own spending habits are the reason for your current situation? You have a medical emergency and you do not have insurance, what would you do? Well we have an answer for that, personal loan! A personal loan plays an important role in your life in times of emergencies. Many people waste this opportunity for luxury expenses and do not understand the importance of personal loan.
If opted and used wisely a personal loan is no less than a superhero in your bad times. Life is unpredictable and you do not know which stone will flip in or out for you, when the financial times are bad and you not have any other option to get out of the situation, then personal loan is the only way.
There are many banks and various non-banking financial institutions which offer personal loans. Every organization has their own custom made loans and you can choose from a variety of unsecured loan products in the market. You can bank on interest rates, processing fees and also negotiate on the tenure of the loan while getting a this loan but for this you will have to make sure that your cibil score is great in number. You can also opt for a personal loan for a low cibil score but the interest rates are relatively high, which you would have availed if the score was great.
You only opt for this loan if you have emergencies. There are many types of loan in the market and each loan has their own traits and time to sanction. Unlike other loans the loan's approval is the quickest and the sanction is in no time. They are the quickest and get all formalities done within a couple of days. There are some banks and institutions where the loans are sanctioned within a couple of hours if you have an account with them and a good cibil score as supplement. HDFC personal loans are the quickest to process and disburse this kind of loans.
When you apply for different loans, every loan needs a security so that the bank has some collateral in place if you fail to make the payments on time. If you are taking a car loan, your car is collateral and in cases like home loan your house is collateral. When you go for this kind of loan there is no collateral needed, that means you can easily get a loan without providing any guarantee, provided you meet the eligibility criteria's laid by the lender. This does not mean you can default you payments and run away from it, if you default a personal loan the consequences are severe on your cibil report which will not only damage your financial reputation but also will close doors on your loan taking opportunities in future.
As mentioned in the earlier point, there is no collateral needed in this type of loan. If there is no guarantee needed, results to minimum documentation and fast processing. The idea of this loan is to get the approval fast and keep the loan process short. You can apply for a loan with very minimum documents. Even better, if you have a savings account with one the reputed banks they have pre-approved loan schemes available and ready towards your account and in some cases you do not even have to go to the bank, with the preapproved option available you can opt for a personal loan online and the loan gets disbursed within hours and the amount is directly credited into your savings account.
With other loans you also need to give reasons why you are opting for a loan, but with this loan you do not have to contribute a reason for which you need the loan. You can do whatever you want with the money disbursed.
With every credit line you take comes the responsibility of paying it on time and avoid hassles in future. Do not take a loan for luxury; consider all other options like lending from relatives, going for a mortgage loan or so. If you really think taking a loan from the bank is the only option go for it and pay your monthly installments like a champion.