Personal loans are unsecured loans that do not require collateral. Only in a personal loan, there is no restriction on end-usage. This article lists the top 8 benefits of a personal loan, how to apply for a personal/cash loan and things to keep in mind before applying for a personal loan.
Read on to know the top benefits of personal loan.
Top Benefits of Personal Loans
Following are some of the top benefits of personal loans.
1. Instant Disbursal
The personal loan amount will be disbursed instantly to your bank account within a few minutes of its approval.
2. Loans of Rs. 20 Lakh or More
Get big ticket loans of Rs.20 lakh or more with minimal documents.
3. No Collateral Required
Personal loans are unsecured loans, meaning you do not have to pledge any collateral or guarantor to avail of the loan.
4. Minimal Documentation
Unlike home loans, you are not required to submit a handful of documents to get a personal loan approved.
5. Easy Eligibility Criteria
It’s not too difficult to avail of a personal loan. The eligibility criteria are less stringent than secured loans like home loan and car loan.
6. Flexible EMI Tenure
Personal loans usually come with a repayment tenure of 6 to 7 years. Choose your loan EMI tenure at your convenience.
7. Competitive Interest Rates
Personal loan interest rates are lower than other lines of credit like payday loans and credit cards. However, interest rates could vary from lender to lender and depend on the customer’s credit profile.
8. No Restriction on End Usage
Personal loans have no end-use restrictions, meaning you can use the loan amount to fund any urgent requirement.
Why miss out on such benefits? Get an instant cash loan up to Rs.20 lakh in a 100% paperless manner with Navi. Minimal documents required – you will only need your PAN card to get a loan from Navi. The entire process – from application to loan disbursal takes less than 20 minutes. Download the Navi app today and get an instant cash loan disbursed to your account within minutes!
No, personal loans don’t come with tax benefits. Also, since a personal loan amount is not a part of your salary structure or monthly income, you won’t be able to file income tax returns on the same. However, if you take a loan from your family member or relative, it could be considered as a part of your income. That way, the loan amount would be taxed.
Reasons for Availing of Personal Loans
You can take a personal loan for any urgent financial requirement, including but not limited to the following:
If you are in need of instant cash to meet any financial requirement, you can apply for a personal loan with Navi for instant disbursal. In a few simple steps, you can find out your EMIs and enjoy the benefits of a personal loan with flexible tenure. Just provide your Aadhaar or PAN details to avail of a cash loan. Download the Navi App and get a cash loan now!
Q1. Why is Personal Loan a good choice?
Ans: Personal loans can really be of great use in cases of emergencies when you have a wedding to finance, a large home project, or any other need for quick money. So, maintaining a good credit score will you a personal loan at very good interest rates.
Q2. Can a Personal Loan be used for any purpose?
Ans: Personal loans can be used for any purpose such as a wedding, home renovation, trips and more. Personal loans are usually not secured by collateral and can be less expensive than credit cards.
Q3. Can I get a Personal Loan if my salary is low?
Ans: You can get a Navi Personal Loan up to Rs.5 lakh if you’re salaried or self-employed. However, the final loan amount is at the sole discretion of Navi. For more information download the Navi app to check your eligibility.
Q4. How can I calculate the interest rate on my Personal Loan?
Ans: Personal loan interest rates usually start from 18% and go up 30%. The loan amount starts from Rs. 5000 and goes up to Rs. 500,000, depending on the credit profile of the applicant.
Before you go…
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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