Personal Loan Benefits

Personal Loan Benefits

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Decoding the many advantages of Personal Loans.

Key Takeaways

  • A Personal Loan is a financing option offered for various purposes.
  • You generally do not have to provide any collateral against these unsecured loans.
  • Banks offer relatively high loan amounts and disburse the loan speedily.
  • The loans also involve minimal documentation due to online application processes.
  • You can use the Personal Loan to service any financial need without any end-use restrictions.

Life is unpredictable, and often you might need funds urgently to meet with different, unexpected expenses. While banks and financial institutions offer various forms of financial assistance, a Personal Loan is considered the most versatile financing option. However, before you apply for a Personal Loan, it is essential to weigh the pros and cons and make an informed choice. This article focuses on the benefits of a Personal Loan and why it remains so popular even today.

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What Are the Advantages Of Personal Loans?

The top Personal Loan Benefits include the following:

Flexibility

Banks and financial institutions offer Personal Loans without mentioning a specific end-use. For instance, you can apply for Home Loans only to buy, construct, or renovate your home, while a Car Loan allows you to only purchase a new or used car. However, You can use a Personal Loan for any financial need that crops up in your life. You can use the loan amount to pay for medical bills, finance a large purchase, pay off existing debts, and so on.

No Collateral or Down Payment

Yet another benefit of Personal Loans is that it is a collateral-free loan. You can apply for two kinds of loans from banks – secured and unsecured loans. While you have to provide some form of collateral as security on a secured loan application, you can apply for an unsecured Personal Loan without any collateral. Moreover, unlike most secured loans, you do not have to provide a down payment either.

Quick Disbursal

One of the most vital benefits of applying for a Personal Loan is the disbursals happen rapidly. The disbursal speed depends on whether you have an existing relationship with the lending bank. If you do, you stand to get loan disbursals on the same day, typically within four hours. For non-bank customers, the loan is disbursed within 24-48 hours, which is still quicker than most other loans. This Personal Loan advantage comes especially handy when you need funds urgently.

Easy Documentation and Application

In the era of modern banking, you can apply for a Personal Loan online. This process is entirely digital and hassle-free. You only have to fill out an online application form and upload scanned copies of the documents required. There is no need to bother with excessive documentation as the application process occurs online and is entirely paperless. As a Personal Loan applicant, you can complete this process in minutes from the comfort of your home.

Final Note

The above-mentioned benefits of Personal Loans make it a worthwhile investment when needed. Other perks of the loan include balance transfer options that allow you to switch your outstanding Personal Loan to a different bank offering better terms. Plus, you can boost your credit score and improve your credit history by repaying your Personal Loan EMIs on time. So, visit digibank to apply for Personal Loan, to enjoy Personal Loan Benefits.

Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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