If you are looking for a particular loan type online, the most common loan type that usually comes up is – Personal Loans. “Top 5 Personal Loans in India”  or “Top 10 Personal Loans online” are the most searched keywords in the world of banking and finance right now. Whenever you need extra cash to pay against a debt, or for home improvements, a wedding expense or probably a medical emergency, you usually go for a personal loan in these cases. A general survey shows that the most opted loan type of loan are unsecured personal loans.

This loan type is most commonly opted for because you do not have to pledge any collateral unlike other loan types and the interest rate is comparatively lower than others.  Today, we are going to support the fact that personal loans are the most preferred loan type in the market and why.

Read More – What To Consider Before Applying For A Personal Loan In India

Pros of Opting for a Personal Loan

Personal loans are Versatile:

While you can use your car loan to only buy an automobile, a student loan to only pay for your tuition fee and a Home loan to only pay for a new house, personal loans have no such restrictions. In case of a personal loan, the funds are transferred directly to your bank account and then you are free to use that money for any purpose of your choice. You can go on a vacation with it, you can pay for a medical emergency or you can use it to renovate you home, the choice is yours!

Personal Loans are easily accessible:

Opting for Apply Instant personal Loan online has seen immense popularity in the recent times. The best part about these loans are that they can be opted from anywhere at any point of time. Now, you don’t need to stand in long queues to get a loan approval. You could be on a vacation and still be able to get the loan amount of your choice disbursed within minutes.

Interest rates are relatively low:

If you look at it, Personal Loan interest rates are relatively lower than other loan types and Credit cards. Automobile loans may start at 9-10%, Credit cards at 16% – 17%, Home loans at 7-10%. You can easily acquire personal loans at 5-6% online that too with a tenure of your choice.

Faster Loan Processing :

Unlike other loan options in the market, Online Personal Loans are considered to be the fastest when it comes down to processing and documentation. There is no scope of any fraudulent activity, it does not require you to visit the bank, it does not involve a lot of unwanted calls and its collateral free. Acquiring personal loans online have never been this easy.

Multiple Lenders on offer:

There are multiple lenders who would gladly grant you a loan, provided you have a decent portfolio. There are traditional sources like Banks, Financial institutions and Credit Unions or you can go for online platforms where you can easily opt for a loan of your choice, like CreditKaro.

Apply For Instant personal loan online and get Quick Disbursal:

Today, most fintech companies make use of the latest risk calculation algorithms. Most online banking websites can assist you with instant personal loan Online personal loans these days and can provide personal loan within a few hours after verification. In traditional form of banking, it is not usually possible to get loans sanctioned within a few hours as there is a long line of documents required by them. It usually takes a minimum of 7 business days to disburse the loan amount.

Is a good credit score necessary to get personal loan?

Unlike Credit cards, it is possible to acquire a personal loan with bad credit. There are lenders in the market who might still be interested in extending you credit, provided you can pay higher interest rates.

Easy Payment cycles:

The best part about personal loans is that you can break it down to fixed monthly installments and there is also an option of pre-closing your loan if you have the funds.

Loan approval is quick:

While home loans and mortgage loans can take at least a month to close, it’s possible to apply for a personal loan online and have an answer the next day. If you are approved, the money is usually deposited into your bank account within a few days.

Personal Loans can be closed earlier than others:

While Car loans, educational loans and home loans can take many years to close since the loan amount involved is really high but in case of personal loans, the tenures only go up to 7 years or so. This is also one of the reasons borrowers go for a personal loan than any other loan type.

Read More – 5 TIPS TO NAIL PERSONAL LOAN APPROVAL