A personal loan is an unsecured loan that acts as a viable financing option in various situations. It is a go-to financing option for individuals confronting sudden financial emergencies or going for big-ticket purchases. Apart from giving financial aid, a personal loan can also help you gain many tax benefits and improve your credit score as well. Let’s browse through the list of personal loan benefits that play a significant role in the demand for this credit option.
1. Freedom to Use the Funds for Any Purpose
Personal loans are versatile! The amount availed from a personal loan can be used to fund any personal purpose such as a destination wedding, medical emergency, travel, home renovation, or debt consolidation. There’s no limitation on end-use so you are free to use it in any way, without any restrictions.
2. No Collateral Needed
A personal loan is an unsecured loan, which means you needn’t pledge any collateral as a security to the lender in the form of cash, property, shares, or any other assets. This might make it more attractive to some consumers who have nothing of value to raise as collateral.
3. Quick Disbursal
With the advent of technology, the time taken for the processing of a personal loan has reduced significantly. Today, you can apply for a personal loan online and once you meet the eligibility criteria, you can get your personal loan almost instantly. The process would be much faster if you’re already a customer of the same bank and repaying for a loan already.
4. Flexibility to Choose the Repayment Tenure
The payment terms of personal loans are usually flexible and you can repay the loan amount in easy installments or EMIs. You also get the liberty to choose a repayment tenor that typically ranges up to 60 months.
5. Minimal Documentation Required
The documents required to avail a personal loan is much lower as compared to most other loans. One can easily get a personal loan by submitting the following documents:
6. Tax Benefits
Personal loans usually have no significant tax benefits, but if you have utilized your personal loan amount for the construction, renovation of your home, you can claim for income tax deduction under Section 24B, that too up to Rs 2 lakh. But remember, to claim the deduction, you will have to furnish enough documents and proper receipts to justify that the fund has been utilized for the specified purpose only.
With a numerous range of benefits, a Bajaj Finance Personal Loan offers the ideal financial aid to all our emergency fund needs. On online platforms like Finserv MARKETS, you can get the best personal loans at very competitive interest rates with minimal documentation. You know what is the best part, the loan can be approved in just 3 minutes and money will be disbursed in just 24 hours!
So what are you waiting for? Kick start your journey with Finserv MARKETS Personal Loan App today!
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