Is It A Good Idea to Get A Personal Loan, If your credit score is high and your income is steady, getting a personal loan makes sense because you'll be eligible for a low-interest rate. On the other hand, you will be offered a higher interest rate if you have a low credit score and unsteady employment. Applying for a personal loan every time you have a significant bill is not advised. A personal loan might help you stretch out the cost over time if you have an unforeseen need, like medical bills or auto repairs. This can help you stay out of debt and manage your budget more easily.
There are several reasons why you could take out a personal loan, such as financing your wedding or repaying previous debt. Income is the primary criterion used by banks to approve personal loans; the purpose is rarely taken into account. You can be eligible for a personal loan for the following reasons:
Getting a personal loan is not too difficult. A personal loan application can be submitted, and funds can be disbursed in as little as one week. When you ask for a loan, though, you should be certain that you truly need it. The following are some explanations for not obtaining a personal loan:
Read More: Tax Benefit on Personal Loan: How to Avail Tax Benefits?
As every coin has two sides, Personal Loan also has two sides, the following are mentioned with advantages and disadvantages.
Thus, personal loans come with a set of benefits and drawbacks that vary depending on several variables like your salary, credit history, and the amount you want to apply for. Even while getting a personal loan now could be a smart move, in the future that could not be the case. Plan accordingly before applying for a loan.
Therefore, there are a variety of advantages and disadvantages associated with personal loans, contingent upon factors such as your income, credit history, and the loan amount you wish to apply for. In the long run, however, it may not be a wise decision to take out a personal loan now.
1. Hassle-free documentation
One of the most significant Personal Loan benefits is minimal documentation. If you apply online at Investkraft, our documentation is entirely digital. You can upload the required documents along with your application form. The process is entirely paperless. For the process, we suggest you to submit proof of age, address, bank account details, salary slips, income tax returns, credit history, etc.
2. Quick disbursal
The disbursal of a home loan takes around 3 to 4 weeks. On the other hand, a Personal Loan requires only 24 hours to 72 hours. Thus, they are the best financial product for meeting urgent cash or payment requirements. However, you must meet the eligibility criteria at Investkraft and have a good credit score to get your loan disbursed quickly.
3. No collateral required
Personal loans are unsecured loans. Thus, you do not need to provide any collateral as security for default or non-payment of dues at your end. This feature of Investkraft’s Personal Loans makes them accessible to everyone with a regular source of income and a good credit history.
4. Build credit score
Affordable Personal Loans at Investkraft are a great way to build your credit score, especially if you are new to credit or have a low credit score. You can avail of them at attractive interest rates and repay them over a flexible loan tenure. As you pay your EMIs and interest on time, your credit score keeps improving. However, remember to avail of a loan within your repayment ability. If the loan EMI is unpayable and you miss any EMIs, it can negatively impact your credit score.
Read More: Personal Loan for Low CIBIL Score of 550
5. Flexible tenure
One of the Investkraft’s Personal Loan benefits attracting borrowers is a flexible repayment schedule. The tenure starts from 12 months and can go up to 7 years. Therefore, you can choose a tenure suitable to your finances and needs. A longer tenure means lower EMI. So, choose a tenure that lets you optimize your monthly outgo as per your needs.
6. Attractive rates of interest
Investkraft’s Personal loans are available at competitive interest rates. As a result, you can enjoy affordable EMIs. Generally, the rate of interest is fixed. So, your EMIs are also fixed for the entire loan term, and you have no worries about changing interest rates.
7. Tax benefits
Depending on the utilization of funds, you can claim tax-related exemptions on your Personal Loan. For instance, if you use the loan for home renovation, construction, or making a down payment for a house, you are eligible for tax deductions of up to Rs. 2 lakh under Section 24B for the interest paid during a financial year. However, different use cases are subject to additional terms and conditions. Submit the required documentation to understand how you can enjoy tax benefits on your Personal Loan. For best suitable personal loan, choose Investkraft.
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