An unsecured loan is given out based on your creditworthiness. In other words, your repayment capability adjudged on your financial track record in the past. Therefore, if you have a stellar credit score, you make a good candidate for specified loan amounts, which is perfect in times of financial stress.
Taking a loan might seem like a risky financial step, however, if planned properly, signing up for a scheme that is beneficial both to the lender as well as the borrower could be the ideal solution to monetary woes. Some of the benefits of a Personal Loan include factors like:
- No collateral required
Unlike other loans, unsecured Personal Loans only need assurance that you have the ability to make repayments in future. This loan is approved only if you have enough credibility to repay the amount. The process is quick, once the bank or the lender establishes you as a good credit score holder.
But the biggest advantage?
You need not worry about mortgaging or pawning in your assets as security. However, if you default on the repayment in any case, the lenders might seek legal aid in order to recover the loan amount.
- Reduced processing time
All a bank has to do is to take a look at your financial track record to decide whether you’re worthy of a unsecured loan. And if it checks out, and they find your bank history to be good, your credibility goes up. This can prove beneficial in getting your loan application processed in minimum time ( which can be less than 72 hours in some cases).
- No tedious paperwork
Since your assets are not surrendered as collateral, the paperwork is limited to your account details, personal information, financial records, and loan requirement. The application process is pretty straightforward, not to mention relatively simple. All you have to do is visit the lender’s website, fill out the form, and submit it for further processing.
- Flexible usage
Unsecured Personal Loans can be used for various purposes and are not limited to fixed usage. It gives you monetary benefits while paying for a house, automobile, your child’s education, or medical emergencies. Such loans are best if you are racing against time to consolidate funds.
- Repayment control
When you opt for an unsecured loan, you’re expected to repay the amount back in a short period of time. Well, that applies to all kinds of loans today, but here you wield the power to decide the repayment amount, schedule, and tenure. Not just that, if you want, you can pay off the debt completely in order to save on interest charges if and when you get a windfall.
- Schemes and benefits
Unsecured loans don’t have to be a burden if you’ve meticulously planned on the methods to repay the amount you have borrowed. That being said, you can avail a number of various benefits from various lenders, which include promotional schemes and offers. Quick application processing, flexible interest rates, and no restrictions on the usage of funds are some of the perks you get when you sign up for Personal Loans.
- Tackling medical emergencies
An unsecured Personal Loan can come in handy when you need quick money to meet medical expenses. Since they are easier to process and are available on the basis of your creditworthiness, unsecured Personal Loans have massive payouts, and are quickly discharged, allowing you to receive immediate medical assistance.
- Boost your business ventures
Personal Loans are one the best options when starting a new business and find yourself lacking capital. You can invest this money and can provide a blueprint of how you plan to channelise your resources.
Unsecured loans are a great option, especially:
- If you have a large amount in the bank to back you up and support your creditworthiness
- If you are short on time and need substantial amount
- If you are ready to pay higher interest rates
- If you need money for strategic finances like medical assistance or housing loan
If you keep the above points in mind, unsecured Personal Loans can be the best financial assistance you can turn to for quick, easy money. If you plan your finances and evaluate your repayment capability conscientiously, EMI calculator will be help to calcualte monthly repayment of the loan , your Personal Loan could solve all your financial problems and not add to them.