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Personal loans are one of the best ways to get a loan without any security. They are generally availed for purposes like children’s marriage, home furnishing, abroad trip, and many other personal reasons. Typically, banks charge higher interest rates on personal loans as compared to other types of loans, but there are several other benefits associated with them. Some of the personal loan benefits are mentioned below.
- Approval of personal loans is very fast. Generally, banks don’t need anything except your KYC documents to approve your personal loan. Hence, the process is super fast, and you can get money within hours.
- If you have a good credit score, then the rate of interest can be very low for your personal loan. For example, Bajaj Finserv offers personal loans at an interest rate as low as 12% per annum.
- If you have taken a personal loan for purchase or construction of any property, then you can get an exemption up to Rs. 200,000 under section 24(b) of the Income Tax Act.
- If you have taken a personal loan for some business purpose, then the interest paid by you will be considered as the extra cost paid for acquisition of that asset, and hence your net income will decrease which will reduce the Income Tax payable.
- Most of the banks and NBFCs have the option to apply for a personal loan online, and hence, it adds up to your convenience.
Most of the above-mentioned personal loan benefits can only be availed if you choose your source of loan wisely. You should thoroughly read the terms and conditions of the bank or NBFCs before getting a personal loan. Some of the most trusted banks and NBFCs for personal loans are Bajaj Finserv, SBI, CBI, HDFC Bank, and PNB.
