Top 5 Benefits You Get With Personal Loans

There are many reasons why an individual would want a personal loan or even need to apply for one in certain scenarios. Moreover, when the whole world is facing a global pandemic that tests your emotional and financial capacity to the core, the dire need for a personal loan could arise anytime. Personal loans are a great way of securing a lump sum amount to fulfil a variety of needs like paying medical bills, clearing off credit card debts, financing a wedding, buying a vehicle, financing home improvement, or making any large purchase.

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Here are the top 5 benefits you can easily avail with personal loans:

1. More borrowing power– Credit cards and other financial instruments have a certain credit limit. This is where personal loans could make all the difference. You can check from your personal banking app or website right away, to know how much loan amount you are eligible for, and then based on your financial needs, you can decide wisely. Moreover, unlike credit card debts, you do not have to settle your loan amount in a span of 45 to 60 days.

2. Lower interest rates– When compared to most credit card interest rates, the online application process for personal loans and eligibility checker come with the promise of lesser interest rates. In order to manage finances better, you should always be choosing a debt instrument, which has a lesser interest rate percentage.

3. Collateral-free loan– This is probably one of the biggest perks that a personal loan can offer and one of the main reasons why people opt for this type of loan. You do not need to offer anything as leverage when choosing a personal loan as they base your eligibility mainly on your earnings, current savings, and retirement age, to mention a few. Hence, if you default on personal loans, then you may have to go through massive penalties in terms of payment, but you would not have to go through the pain of seeing your home or car being repossessed.

4. Easy repayment options– Once you take a personal loan, all you have to do is keep track of your monthly repayment, i.e., your EMI. Moreover, with the advent of personal banking, auto-debit of EMI amount from your bank account is also possible. Unlike credit cards and their surmounting payments, you do not need to lose sleep over the pre-set schedule of personal loan EMIs by calculating them in advance with a personal loan EMI calculator.

5. Option for a longer tenure– Unlike credit card debts, personal loans can be availed for a longer period as well. When you are checking the process to apply for personal loans online, it will show you how many years can you extend your repayment schedule for, and you can pick the duration accordingly.

Basically, personal loans are well received in the market by one and all as they are collateral-free unsecured loans, which can help you fund big and small expenses or simply give you cash in hand during emergencies. If you want to arrange for a large sum for an emergency or to solve your financial woes, then personal loans are surely the way to go.

With the help of a personal loan EMI calculator, not only can you calculate your EMIs in less than a few seconds but also compare interest rates from different lenders of personal loans. Reputable banks like Axis Bank offer easy-to-apply personal loans online with a hassle-free and quick procedure. This is a huge time saver when it comes to arranging funds during an emergency, and you can easily select the one that fits your requirement and budget just right.