Why Should You Choose a Personal Loan for You or Your Family?
The popularity of digital financing is growing at a rapid pace in India. One of the fastest-growing fintech segments in India is digital lending, expanding from $9 billion in 2012 to about $110 billion in 2019. The digital loan sector is predicted to reach roughly $350 billion by 2023. Fintech start-ups and NBFCs are the primary players in this industry.
Thanks to competition between different lending institutions, personal finance is available to practically everyone. People can seek and receive instant personal loans with minimal documentation and, most importantly, excellent customer service. With several players in the fray, it is a buyers’ market.
In this blog, Fintra highlights the following topics:
- Reasons to opt for a Personal Loan
- Eligibility criteria for getting a personal loan
Reasons to opt for a Personal Loan
Individuals need instant personal loans for themselves and their families for the following reasons:
- Expenses in an emergency
There may be several occasions in a person’s life when they or someone in the family is dealing with a health issue. Even if they have medical insurance, funds are required for items not covered. In such situations, a personal loan provides them with the funds they need with competitive personal loan interest rates.
A person may need funds for several reasons; financial emergencies, purchases, vacations, home renovation, etc. In such cases, they can opt for a personal loan. Salaried applicants can apply for a personal loan from Fullerton India’s Instant Loan App.
- Consolidating debts
One of the most common reasons people take out a personal loan is to consolidate debt. When customers opt for a personal loan and use it to pay off multiple loans or credit cards, they are effectively combining all of their prior debt into a single monthly payment.
This categorization of debt makes it easy to formulate a repayment schedule with competitive personal loan interest rates compared to credit cards.
- Upgrading a home
A personal loan is availed by those repairing their home. They can take a personal loan to renovate their house or refurbish it for an upcoming festival.
Instead of spending a large sum of money all at once, people can repay the debt in smaller and manageable EMIs.
- Financing for vehicles
If people want to buy a car, two-wheeler, or commercial vehicle, they can get an auto loan, but they can also get a personal loan. Although auto loans offer lower interest rates than personal loans, they are secured loans that require the vehicle as collateral, and a down payment amount.
- For business expansion
A personal loan may be the perfect solution for individuals looking to finance their business expansion. Many lending institutions offer personal loans specifically for small and medium entrepreneurs looking to expand their operations. They can apply for a personal loan without any collateral, and there are no restrictions on how they can use the funds.
- Expenses for weddings
Indian weddings are expensive affairs. A personal loan can be a good option to finance the planned and unanticipated costs at a wedding.
Eligibility criteria for getting a personal loan
With Fullerton India, getting a personal loan is quick, the documents required are minimal, and the entire application process is digitized.
With Fullerton India, a person can obtain up to Rs. 25 lakhs as a personal loan; the interest rates start at 11.99% per annum and flexible repayment tenures between 12 to 60 months.
Applicants must meet the following criteria to qualify for a personal loan from Fullerton India:
- Individuals must be Indian citizens between the ages of 21 and 60.
- Applicants must be salaried or self-employed.
- Salaried applicants must earn at least INR 25,000 per month (Mumbai and Delhi residents) or INR 20,000 (other Indian cities). Cash salary applicants are not accepted.
- A year of experience is essential, with at least six months in the current company.
- Further, a minimum credit score of 750 is required.
Conclusion
A personal loan is effective for unexpected expenses. However, one is advised to be careful and do their research before applying for a loan. Choosing the wrong product may not meet your requirements, and doing things in a hurry without doing your research could lead to loan rejection, or worse – you could find yourself a victim of unregistered loan agents/apps.
Thus, if you need a personal loan, check various options to find the best rate to meet your needs. Please remember that the best loan apps in India are often those that belong to reputed financial institutions like Fullerton India, which are registered with the RBI. Please check the authenticity of loan apps before applying for a loan.
