Top 5 Reasons To Avail A Personal Loan

Personal loans have become one of the most sought after forms of credit preferred by borrowers. With such loans, one can secure funding of up to Rs.25 lakh based on their eligibility. Besides the substantial loan amount, there are several other reasons why one should avail the best personal loans in the country.

5 reasons to opt for a personal loan

Personal loans from reputed lenders come with lucrative features, which multiply their benefits for borrowers. The primary reasons behind individuals opting for such credit are listed below –

1. Medical emergency

During any financial crisis or emergency concerning healthcare, it is advised to opt for a personal loan to deal with your urgent funding requirements. Personal loan applications offer minimal documentation along with instant approval, which comes in handy to meet your immediate financial needs.

2. Business expansion

Business owners looking forward to expanding their venture can use a personal loan without having to rely on profits. Moreover, such loans are unsecured advances, so borrowers do not require mortgage collateral to avail it. This helps business owners to arrange for the funds without having to worry about prolonged documentation procedures.

3. Debt consolidation

If you fail to pay the EMIs of multiple outstanding credits of small value, it is advised to opt for a personal loan to repay them and reduce your financial liabilities.

4. Higher education

Personal loans do not comprise any end-use restrictions. You can thus use the finance abroad education of your children at top institutes in India as well as abroad.

5. Renovation of residential property

Personal loans can also be utilised for home renovation, whereby you can use the funds so availed to carry out remodelling or repair of your house.

The best personal loans also come with attractive interest rates, which can help save a considerable amount on interest payments.

Before applying for such a loan, it is advised to check the eligibility criteria as it varies across lenders. Leading NBFCs in India require a CIBIL score of 750 or above alongside requiring a borrower to meet age, employment and residential criteria for personal loan approval.