pros and cons of personal loan

The Pros and Cons of Personal Loan

In this article we are going to talk about personal loans. As reputed personal loan providers in delhi we are going to share pros and cons of personal loan. 

Personal loan is the most efficient way to make your dreams come true faster. So let’s look at what a personal loan is?

A personal loan is a fixed rate installment loan. Personal loans are usually unsecured types of loan which don’t require any collaterals. In personal loans interest rate is different from lender to lender and interest rate is dependent on your credit score.

 

Personal loan the next generation:

Nowadays lenders check your social media account and also check your mobile activities before offering you personal loan. Personal loans come with many sizes and lengths.as reputed private financers in delhi we suggest you to don’t borrow a personal loan if you aren’t able to pay it back.

 

Personal loan in Noida

Advantages of personal loan:

Unsecured Loan:

Personal loans are unsecured types of loan, in that lenders don’t require mortgage of assets  or a guarantee for them. In personal loans you don’t have to worry about the losing home or any other assets.

 

Easy Application Process:

Application process for personal loans is easy, these loans are available in all banks and financial institutions. Personal loans require minimal paperwork and time they need to verify makes the process easy. It takes less time compared to other types of loan. Personal loan is the best option in an emergency.

 

Available for Any Purpose:

In addition a personal loan is available for any purpose. Lenders will not obligate the borrowers to specify the purpose or reasons for applying for a personal loan. Personal loan is multi purpose loan. 

 

Single payment option:

You can pay your debt in single payment. You can do prepay your loan after specific time, 

 

Disadvantages of personal loan:

 

Higher Rates and Payments:

Personal loans are expensive, having higher interest rates and payments. Unsecured personal loans are risky because lenders medicate the risk by charging higher interest. Some lenders charge you a low interest rate but they can charge you high processing fees. Many banks and financial institutions not allow for partial repayment of loans.  This will result in your debt getting bigger and bigger.  

 

Stiff Repayment Rules:

In addition to higher premium personal loans have stiff repayment rules. Yes you can choose your repayment period but you can change after choosing.  You have to pay the required amount for the entire duration. If you fail to pay emi then you should have to face the legal action which leads to more complications. 

 

Strict Eligibility Criteria:

Lenders obviously need to follow the strict guidelines with respect to eligibility criteria for personal loan. Most banks and NBFCs check your income level before giving you a personal loan. NBFCs can reject your personal loan due to credit score or low income loan. 

 

The Bottom line:

Personal loan is ideal if you have short cash requirements. This type of loan is ideal when borrowers do not have any available collaterals. Before taking a personal loan the borrower should remember that personal loan carries a higher interest rate. Personal loan can create more problem if you are unable to pay the EMI.

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