A personal loan is a loan which does not require any collateral in order to acquire it, and can be issued by a bank or a non-banking financial company (NBFC) both. It is an unsecured loan as unlike a car or house loan, one doesn’t have to pledge any of their assets as collateral, Visit Websites to know more.
Why do people opt for a personal loan?
When people are in an urgent need for a loan and they cannot manage to pledge their assets for collateral or maybe they don’t have any, personal loans can come into play and be a choice of favor.
How does one get a personal loan?
The procedure to get a personal loan is similar to most of the others. One has to apply for the loan from the bank or NBFC that they find suitable, submit the required documents, get their credit worthiness approved from the financial agency and finally they get a loan of the said amount issued to their respective bank accounts.
One has to repay the loan in equated monthly installments (EMI), which differs according to the loan amount, rate of interest, financial agency etc.
In what situations do personal loans prove to be useful?
Here are some situations where personal loans can be a life savior:
In a country like India, where weddings are usually considered as a grand affair, with the expenses involved being even grander, a personal loan might come in handy to handle the expenses, may they be to take care of the catering or for the bride’s ring.
Medical uses and emergencies can be quite heavy on your savings and one might not be able to cover the full expense of an emergency such as a surgery. Here is where these loans come in handy, as they are disbursed quickly and do not require you to go through the long process of arranging collaterals.
Suppose you get transferred to a new location for a job that you love. This can mean extra expenses on your balance sheet which can many a times prove to be daunting. Here is where these kinds of loans can be utilized and acquired for any and all the urgent expenses that may arise during this process.
Concluding the article, a personal loan may be of any expense that one may like to cover, with an extra ease and timeliness that one gets offered in the process of acquiring the same!