Personal loans are a form of unsecured loans that finance any of the borrower’s interests and desires. What is even better is how accessible these loans are. With online modes of loan taking on the rise and personal loan apps, it has become extremely convenient to borrow loans.
Although personal loans have been around for a long time, they have only recently gained popularity. This newfound popularity can be attributed to how easy it is to get a personal loan and its flexibility. Apart from this, several other factors have contributed to the rise of personal loans. These are outlined below.
Why Online Personal Loans are Gaining Popularity
- Convenient Application and Disbursal
Earlier, the application, approval, and disbursal period for personal loans in India used to be lengthy. But now, due to online modes, it has become easy for borrowers to apply for personal loans. Not just this, instant personal loan apps also assure quick approvals. A lot of financial institutions offer personal loans at 24–72 hour approval periods. Hence, ensuring quick disbursal of the amount and making it apt for emergencies.
- Minimal Documentation
Since personal loans are unsecured, they do not call for much documentation. The documents required for the application process are standard ones that all adults already have. Due to personal loan apps, the filing process is also simple.
Earlier, you had to file documents as hard copies. But now, all you have to do is upload the scanned copies on the loan app or the lender’s website.
- User-Friendly Apps
Many financial institutions either have a well-developed application of their own or are affiliated with apps. These apps are very user-friendly and make it extremely easy for you to navigate through the process.
Amid our busy lifestyles, it can be difficult to call a financial expert for guidance on personal loan applications. Instant personal loan apps are a great solution for that. You do not have to speak to anyone unless you feel the need to. Even to seek customer service support, you can interact through messaging channels. Hence, catering to all the needs of users.
- Straightforward Eligibility Criteria
The eligibility criteria for personal loans are easy to fulfil. They are:
- Applicant must be an Indian Resident
- Must be between the age of 21 to 60
- A minimum net salary of INR 20,00, if based in Mumbai or New Delhi
- A minimum net salary of INR 18,00, if based in other cities
These are the main conditions. Apart from this, some lenders may have an additional requirement. But, even those requirements are not too complicated to fulfil.
- No Restrictions on End Use
Most loans are meant for a particular purpose, for example, home loans, car loans, bike loans, etc. As for personal loans, you can use them to finance anything. There are no restrictions on what you can use the loaned amount for.
Some people use the funds for travel expenses, renovation costs, weddings, education, etc. Such flexibility in combination with the ease of apps and other online modes has helped personal loans gain much more traction.
- Flexible Repayment Terms
The repayment tenure for personal loans ranges from 3 months to 60 months. A flexible repayment tenure gives you the leeway to decide whether you want to undertake a high EMI loan-low tenure loan or a low EMI-high tenure loan.
- Useful for Debt Consolidation
Nowadays, due to multiple forms of credit, people find themselves in debt towards various financial institutions. This can be tedious as it requires monthly repayments to different sources with separate interest rates. In such cases, it is best to undertake a personal loan for debt consolidation and use funds from this loan to clear your credit portfolio.
Personal loan’s accessibility, faster availability, and collateral-free nature has made it popular amongst people. Inferring from the above mentioned, personal loans offer borrowers a range of benefits.
Additional Read: How Do an online Personal Loan verification Process Work?
Start by finding a credible personal loan website or app that has multiple options to enable thorough research. It is also helpful for borrowers to use a personal loan EMI calculator to gauge where they stand financially. Hence, helping them narrow down the search.
If you need extra funds or a little push financially to achieve your short-term or long-term goal, then personal loans are the perfect solution!