What are the Various Personal Loan Benefits?
Personal loans are the go-to financing option for individuals facing an urgent financial crisis or going in for big-ticket purchases. There are several personal loan benefits which play a crucial role in the popularity of this credit option.
Some of these loan advantages include:
- Financing up to Rs.25 lakh
Personal loans offered by NBFCs and financial institutions can provide financing up to Rs.25 lakh. The funds can be utilised for an array of purposes such as renovating a property, higher education, purchasing a vehicle, and covering medical expenses.
- Short-term repayment tenors
One of the personal loan benefits is the repayment tenor that ranges up to 60 months. You also get the freedom to choose a period depending on your needs.
- Rapid disbursal
Bajaj Finserv disburses personal loans within 24 hours of approval. This quick loan disbursal process makes these loans ideal for medical and other emergencies.
- No collateral required
Personal loans are unsecured loans and, therefore, you don’t have to mortgage an asset to avail the funds.
- Attractive rate of interest
Personal loans come with a competitive interest rate. The low rate of interest on personal loans keeps your EMIs affordable.
- Minimal paperwork
The documents required for a personal loan are:
Employed applicants have to provide their employee ID card and latest salary slips. Self-employed applicants have to submit their business proof documents, previous year’s turnover details, and income tax returns.
- KYC documents
- Bank account statements
- Simple eligibility criteria
Salaried customers, who are residing citizens of India, have to be between the ages of 20 and 60 years to be eligible for this loan.
In addition to the above, personal loans can also provide income tax benefits if used for home renovation, purchasing or constructing a house, or for higher education costs.