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Benefits of a Personal loan

· Personal Loan Advice

With the rise in flexibility and customisation in the personal loan segment, millennials have changed their spending habits and also have transformed the way they meet their lifestyle needs and urgent cash requirements. It has become so much easier to get quick cash and at flexible terms & conditions, that meeting lifestyle requirements by obtaining credit has become a new way of life. These pocket-friendly, low-interest and collateral-free loans have steadily fuelled new generation’s self- esteem to enhance their financial capability.

In addition to it being a blessing in disguise, here are reasons why a Personal Loan can be beneficial for you. Here are 4 ways Personal Loan can be your saviour -

Nature of Usage: A Personal Loan is an unsecured type of loan. Unlike car loan, which can only be used to purchase a vehicle, Personal Loan can typically be used for any nature of requirement. Whether you are planning to buy an updated gadget, or renovate your home, pay off credit card debt or take care of unexpected medical emergencies – a Personal Loan can help you cover almost any kind of cash requirement! As long as you have the capability to repay and intention to pay back, lending institutions shall not have any hiccups in giving the loan.

Offers better financial discipline than credit card: Are you a frequent credit card user? But do you know the right way to use them?

To manage your finances wisely, it is suggested that one should not spend more than 20-30% of their credit card limit. So, if you need more money and you are sure that one month is not the time-frame you are looking at, to pay back the credit withdrawn, you can choose an Advance Salary Loan! You take up to 2.5 x of your monthly net salary and pay back in 12 months! This helps you build financial discipline as well as does not impact your credit score negatively. Another suitable personal loan option is an Overdraft Facility.

Flexible Repayment Options: Personal Loan can be taken for longer loan tenure. You can be decisive about the period for which you require the loan. Even Personal Loan has been customized to help you meet different requirements. But, if you need a loan for a higher amount and longer tenure, there are EMI Free Loans as well. EMI Free Loan helps you lower monthly installments up to 40%. You service only interest on a monthly basis (for 5 months each) and pay equal bullet amounts for Principal repayment, every 6 months.

Helps improve credit score: Everyone is aware about CIBIL score or credit bureau scores that are used to assess one’s credit profile. If you are planning to buy a home one day and apply for a home loan, your credit bureau score will most certainly be assessed. This score would narrate the tale of your repayment capacity and financial discipline. While a high score would enable you to get any loan faster and at better interest rates, a low score may lead to a loan offer with somewhat different terms. The flexible repayment terms and longer tenure facilitate timely repayment. This eventually builds and improves your credit score.