Often, we look at some expensive stuff online or while strolling in the mall and cringe over its price. It seems beyond our purchasing capacity so we decide to move on. Well, this is a thing of the past. You no more have to worry about any expensive purchase as a personal loan will take care of it all. Most lending institutes offer a personal loan that can be used for a variety of purposes.
Whether it is planning your dream holiday, buying a piece of expensive furniture, or renovating your house, a Fullerton India Instant personal loan can be a smart move to ensure that you do not harm your savings while also enjoying the freedom to make big purchases.
What is Personal Loan?
An unsecured financial tool that helps individuals borrow money for their needs is known as a personal loan. No collateral or security is required from the borrower for a personal loan To cover the risk posed by a personal loan, the lenders charge a higher interest rate from the borrower (as compared to secured loans). It has no restriction on where you can spend the money.
When used in the right situation, a Personal loan can offer several notable benefits.
Let us look at how quick personal loans can take care of your expensive shopping list.
Why choose a Personal Loan for your big purchases?
Here are some reasons why you should let personal loans aid with the big purchases:
- Use it for multiple purposes – Unlike other loan options, which are for a specific purpose, the personal loan can cover all your expenses. A smart TV, a new microwave, a new fridge or an AC for the summers – a personal loan can take care of it all. You can use the funds for multiple reasons as you require. If you have already made some expensive purchases with your credit card, then a quick personal loan will help in consolidating your debt at a lower interest rate.
- Improve your credit score – Apart from just helping make big purchases, a personal loan is a great tool to improve your credit score. Credit Score is one of the most important factors when applying for any loan, so working on improving your score will help in getting the best loan terms while taking loans in the future. Make sure that you are on time with your monthly EMI and not missing on any, this will build your credit history. A personal loan also helps diversify the account types that you hold. The right mix of debt accounts, coupled with regular payment history can work wonders in boosting your credit score.
- Longer-term for repayment – Unlike a credit card, a personal loan offers the freedom to choose the repayment tenure. This tenure ranges from one to five years. So in case of a financial crunch, you can borrow the money now, and repay it in small monthly installments during your tenure.
- High borrowing limits – in comparison to other common options like a credit card, the borrowing limit for a personal loan is higher. Along with this, a personal loan at a lower interest rate can be easily obtained by a candidate having an excellent credit score and history, and repayment capacity. Both the loan amount and the interest rate are not fixed. Based on your credit score you can negotiate with the lender for the best offer i.e. higher loan amount, and lower interest rate.
- Easy application process: The personal loan application process is fairly simple and easy. You can either apply through their website or make the process quicker by downloading the personal loan app from Google Play Store or Apple store. With minimum documentation and completely paperless, you can get the loan approved in 24 hours and get it disbursed into your account in less than 30 minutes.
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With all the above benefits, making a big purchase has become fairly simple and quick. However, it can also become a financial burden on you if not planned properly. Thus, it is essential to plan out your requirement as well as the monthly EMI and budget for the same before applying for a personal loan itself. You can use the personal EMI calculator to make better borrowing decisions.