Despite the decline in India’s economy in the last two years, the personal loan sector witnessed a substantial rise. Leading NBFCs have a notable contribution to this growth among various financial institutions. A recent report shows-
- NBFCs market share in the personal loan segment reached almost 42.16% during 2020.
The fundamental reasons for this advancement can be associated with their capabilities of meeting financial requirements without pledging collateral. Besides, customised loan offerings, digitalised verification processes, quick disbursals, etc., further fuel its popularity.
However, before applying for a personal loan, it is better to know the intricacies in detail.
Why Apply For A Personal Loan?
Personal loans offer a quick solution to monetary needs among other credit facilities. However, the reasons to apply for a bajaj finserv personal loan can vary across borrowers. Nevertheless, this credit line has unique features that benefit borrowers. These include-
- Substantial loan amounts
Leading financial institutions to extend high loan amounts, up to Rs. 25 lakh, to address planned or unplanned expenses. However, this personal loan amount can vary depending on the borrower’s eligibility and repayment history. By availing of the funds, borrowers can mitigate any of the requirements mentioned below:
- Medical emergencies
- Finance high-end purchases
- Consolidate debts and fund business expenses
- Fund child’s education
- Finance wedding and vacation etc.
As already mentioned, since this credit facility does not come with any end-use restriction, borrowers can use the funds to fulfil any purpose at their convenience. Besides, running around to complete extensive loan-related formalities can be troublesome during emergencies.
Borrowers can negate this issue by digitally applying for a credit through the personal loan app. By downloading the mobile application and following the steps accordingly, one can successfully complete the application process.
Besides, during urgent funds requirements, one can quickly apply for a small personal loan online through the portal of the respective lender. Moreover, borrowers can upload essential documents online and dodge the hassle of producing them physically.
- Favourable personal loan interest rate
Usually, these credit facilities come with affordable interest rates. Besides, one can avoid paying excessive interest rates by improving their CIBIL score, paying off previous debts on time, maintaining credit utilisation ratio, etc. Nonetheless, consumers must compare interest rates offered by different financial institutions and settle for the most affordable one. Customers can also take the assistance of a loan interest calculator to determine the overall interest outgo, EMIs, and the borrowing cost beforehand, allowing borrowers to manage finances effectively.
- Flexible repayment tenor
Availing personal loans from reputed financial institutions like Bajaj Finserv allows eligible borrowers to repay credit as per their financial condition and convenience. However, for more convenience and reducing the repayment burden, individuals must find the right personal loan tenor that works for them.
- Quick approval and disbursal
These NBFCs take minimal time, approximately 24 hours, to disburse the loan amount to the borrower’s account. Individuals can ensure instant loan approval and disbursal by meeting simple eligibility parameters and providing basic documents. This is why personal loans are the most effective borrowing option during emergencies, as it allows borrowers to get instant finance for all kinds of crises.
Additional Read: Learn The Benefits of Using a Personal Loan Interest Calculator
- Flexi Loan facility
Another special advantage that borrowers can avail themselves of when thinking to apply for a personal loan is the Flexi Loan facility. It enables borrowers to pay interest on the amount utilised and not the overall sanctioned amount.
For instance, suppose an individual opts for a loan amount of Rs. 12 lakh and withdraws Rs. 3 lakh from the sanctioned amount. In that case, the interest will be levied only on Rs. 3 lakh and not on the overall amount till the entire borrowed amount is repaid.
This facility allows borrowers to save considerably on the interest amount. However, to maximise the benefits of this option, customers’ needs to know how to get the most out of their flexi loan.
Nonetheless, one must note that to avail of the benefits mentioned above, they need to meet the eligibility parameters involving appropriate age, income, employment status, credit score, etc. Besides, eligible applicants can also enjoy pre-approved loan offers extended by reputed NBFCs like Bajaj Finserv on various financing options, such as business loans, personal loans, credit cards, etc. By availing of these offers, one can significantly bypass the hassle of extensive documentation and expedite the loaning process. Therefore, intending borrowers can check their pre-approved offers by mentioning their essential credentials.
Therefore, individuals can apply for a personal loan from these leading NBFCs as they do not levy additional charges, making the credit more affordable.
Read Also: Apply for Personal Loans from Top NBFCs such as Bajaj Finserv
