Personal loans are often a helping hand for people with 9–5 jobs earning a steady salary. Some expenses are unpredictable but unavoidable. In such situations, a personal loan — an unsecured consumer loan ideal for salaried professionals — can be a practical option.
Most private/government banks and financial institutions provide personal loans without the need for any collateral. As a result, personal loans are categorized as unsecured loans. However, the rate of interest (ROI) and processing fees tend to be higher than vehicle or home loans.
Like other loans, personal loans have pros and cons. If you need instant cash without mortgaging your vehicle, land, ornaments, or house, a personal loan is worth considering.
With the latest advancements in banking technologies, you can quickly check whether you’re eligible for your desired personal loan. Less paperwork, minimal documentation, instant disbursal, flexible EMIs, and direct transfer to your bank account!
Personal loans are safe so long as you have a stable income and pay EMIs on time. Before you apply, consider these key questions:
- Is a personal loan the only option for your unexpected expense? Are you confident you’ll be able to pay the EMIs?
- What are the eligibility criteria and the exact approval process?
- Is your current income stable enough to handle the EMIs?
Once you’ve reflected on these, let’s explore the advantages of personal loans.
It Fulfills Your Unpredictable Expenses
Unpredictable expenses can occur anytime. Sometimes you can absorb them, but not always — and your partner, family, or friends may not be able to help. Asking for money can feel humiliating, too. Thanks to personal loans being 100% unsecured, you can often access funds quickly — in some cases within 24 hours.
It Is a 100% Unsecured Loan
Personal loans don’t require collateral. They’re handy and, with planning, repaying them isn’t difficult. This makes them accessible to a broad range of salaried borrowers.
It Is Ideal for Many Purposes
While personal loans are frequently used for urgent cash needs, they can also support travel, medical expenses, or shopping. In simpler words, if you require instant cash without pledging collateral, personal loans are a solid choice. Focus less on the purpose and more on timely repayment.
It Can Boost Your Credit Score
Paying EMIs on time — for any loan — supports your credit score. Since personal loans are typically smaller than home or education loans, they can be a manageable way to build positive repayment history, improving access to larger loans later.
Get Instant Cash with Fewer Worries
With no collateral or guarantor required, personal loans may let you avoid borrowing from friends or dipping into savings. If your income is stable, they can be a convenient financing option for short-term needs.
Many lenders also offer special personal loans for students and young professionals with competitive rates. Amounts can range from as low as ₹1,000 up to ₹1 lakh, depending on eligibility and need.
Instant Disbursal of Funds
Banks and NBFCs across India offer personal loans. While eligibility, process, interest rate, and repayment terms vary by lender, the application process is usually quick and repayment is flexible. Disbursals can occur within 24 hours of approval in many cases.
Wrapping Up
Personal loans can be very useful in unfortunate circumstances — but they can be expensive over the long term. Consider alternatives where appropriate, and always evaluate your overall financial situation before you borrow.