Personal loans are unsecured loans that do not require collateral. There are many benefits of a personal loan as there is no restriction on end-usage. You could avail of a personal loan during a medical emergency, for marriage, education, etc. Moreover, you can get tax benefits on a personal loan. This article lists all the benefits of a personal loan, how to repay it and things to keep in mind before applying for a personal loan. Read on!
A personal loan is a lump-sum amount you borrow at one time from the lender and repay over a fixed tenure with monthly instalments. This is an unsecured loan availed by an individual from a bank or an NBFC (Non-Banking Financial Company) to meet financial requirements.
The eligibility of the borrower is decided based on certain parameters like their employment history, credit score, income, etc. The interest rates are usually higher on personal loans than unsecured loans as the former involves higher risk.
There are many advantages of personal loans that make them preferred over riskier credit avenues. Here are some of the top benefits of a personal loan:
Common reasons for personal loans application by Indians are as follows:
There are certain circumstances in which you can avail tax benefits on a personal loan depending on its usage, such as:
You should consider the following factors before availing a personal loan:
Here are the advantages of availing of personal loans from Navi:
To be eligible for instant personal approval with Navi, you need to fulfil the following conditions:
If you are in need of instant cash, whatever may be your reasons for a personal loan application, download the Navi app 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. You can even avail of tax benefits on EMI payments if you can demonstrate that the purpose of a personal loan is covered under the tax laws.
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.
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.
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.
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.
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