With soaring inflation and an increasing standard of living, the need to avail a loan to meet your life goals is also rising. While there are several loans on offer, a personal loan has been a consistently sought-after financial solution in the country. In fact, strides in FinTech have allowed lenders to offer a personal loan in the form of an emergency loan online. While this feature makes a personal loan an excellent financial solution, here are other reasons that make personal loan favorable among borrowers. 

It is a Versatile Financial Solution

Lenders put no restrictions on a personal loan’s usage and you can use funds from your loan as per your choice. As such, you can fund a range of personal and business needs with a personal loan. From paying for your child’s higher education to funding your business’ working capital gaps to fulfilling emergency medical expenses, you can use this loan as per your requirement.

It Offers Flexible Repayment Options

Typically, a lender allows you to repay a personal loan through a tenor ranging from 12 to 60 months. Keep in mind that the longer the tenor, lower your EMIs will be and vice versa. This way, you can choose a tenor as per your convenience and repay the personal loan in time. To keep your EMIs budget-friendly, use the personal loan EMI calculator available online on most lenders’ websites.

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Further, you can enjoy greater flexibility in terms of withdrawal and repayment with the Flexi personal loan from Bajaj Finserv. Here, you can withdraw from your sanction multiple times, based on your needs. Further, instead of paying interest on the entire sanction, you only pay interest on the amount you withdraw. This helps reduce your borrowing costs. 

You can also choose to repay your entire loan via interest-only EMIs throughout the tenor and pay the principal only in the end. Doing this will help you manage your cash flow better and save up to 45% on your EMIs. This facility is extremely suitable when it is not possible to estimate the occurrence and extent of your expenses like in the case of home renovation, travel, and so on.

It is Easy to Qualify For Option

Since a personal loan is unsecured in nature, you do not have to pledge security to qualify for the loan. This simplifies the process of application. Further, lenders have simple eligibility criteria and minimal documentation requirements when it comes to a personal loan. For instance, Bajaj Finserv has the following eligibility terms and documentation.

Eligibility

  • You must be 23 to 55 years old.
  • You must be an employee of an MNC, private or public company.
  • You must be a resident citizen of India.

Documents

  • KYC documents
  • Employee ID card
  • Last 2 months’ salary slips
  • Last 3 months’ bank account statements of your salary account

Meeting the entire personal loan eligibility criteria and submitting the documents in a single go will help you qualify for a personal loan quickly. In order to benefit from instant personal loan eligibility, you can simply apply via your pre-approved offer.

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It offers a high, collateral-free sanction

One of the vital reasons why a personal loan is popular in India is its unsecured nature. This eliminates the need for you to arrange collateral in order to avail a loan. Despite its collateral-free nature, a personal loan offers a high-value sanction with which you can fund a range of needs.

For instance, reputed lenders like Bajaj Finserv offer a personal loan of up to Rs.25 lakh. This hefty sanction is sufficient to fund your overseas vacation, hospitalization and surgery, home improvement, and other high-value expenses. Further, the nominal personal loan interest rates charged on this loan makes it a cost-effective option for you. Moreover, you can apply for it on the basis of simple eligibility terms and enjoy a range of lucrative benefits.

It offers quick approval and disbursal

The simple eligibility criteria and minimal documentation requirements for a personal loan allow lenders to approve your loan quickly. In fact, Bajaj Finserv approves your loan in just 24 hours from approval. This makes the personal loan an excellent financial solution during emergencies such as medical treatment and bridging working capital needs.

Before applying for a personal loan, remember to check your pre-approved offer from Bajaj Finserv to view your customized deal and benefit from a hassle-free one-step online approval.