Business & FinanceWhy Most Individuals Apply for Personal Loans?

Why Most Individuals Apply for Personal Loans?

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The demand for personal loans is increasing every year while the size of loans keeps shrinking, which shows its usefulness among individuals looking for small funding options. The average ticket size for personal loans in metro cities has reduced from Rs. 1.91 lakh in the year 2020 to Rs. 1.86 lacs this year. Lenders are providing personal loans at a furious pace to meet the rising credit demand.

A personal loan can take care of all your financial requirements without pledging any of your assets. Applying for personal loan is an ideal and instant financing option that offers complete flexibility to use the funds as per your needs. You can use it for planning a tour, funding a marriage, home renovation, higher education abroad, business expansion or any other personal use. Except for illegal or speculative purposes, the borrower can use it for any purpose.

Key Reasons to Apply for a Personal Loan

First-time loan applicants fire up the personal loan market in India. Following are the main reasons or benefits that make individuals applying for personal loans:

1. Easy Eligibility for a Personal Loan

NBFCs offer personal loans against easy eligibility. Following are the easy eligibility conditions to get personal loan approval.

Nationality: Indian
Age Limit: 21-58 years
Net Monthly Income: A minimum income of Rs 20,000 per month for salaried Individuals
Credit Score: 630+
Work Experience: Total work experience required is 12 months and in the current company is 6 months.

Meeting this easy eligibility for a personal loan, apply online conveniently.

2. Large Loan Amount as per Your Eligibility

If you have maintained a good credit score with satisfactory credit history, you can apply for a significant amount against a personal loan. It can go as high as Rs.10 lakhs. You should meet the eligibility parameters very well to get approved for a high personal loan amount.

3. Easy Documentation

Nowadays, lenders are offering personal loans online. Following a 100% digital process, you can make an online application for your personal loan. Apply online and complete the loan processing without any requirement of any paperwork. They can process the loan in real time. To complete the personal loan application, you need to upload basic KYC documents – ID proof, address proof, age proof, and Income proof, like salary slips for the past three months with the bank statements for the past six months. You can benefit from a quick approval and disbursal of funds after successful document verification.

4. Fund Availability without Collateral

Most lenders offer unsecured personal loans, and you need not pledge your valuable assets as security. Just complete the application process online with the required personal and professional documents to get a personal loan.

5. Meet your Unique Requirements

Lenders do not limit the borrowers to using the personal loan amount. You can use the loan amount for varied purposes. Some of these are as follows:

Pay Medical Bills: Personal loans are great to help pay for medical bills during emergencies. It helps individuals to provide quality treatment to their loved ones without losing their savings, as a personal loan is an option with ready funds.

Fund Education Abroad: If you have a shortage of funds to provide the best education to your child, you can opt for an easy personal loan. It helps you to educate your children in the best institutions.

Available finance for major milestones like a wedding: A personal loan amount can be used to fulfill your dream of a grand or destination wedding.

Loan for Small and Big-ticket expenses: You can apply for a personal loan for Rs.50,000-10,00000. Whether it is your dream of a world tour or a car, a personal loan can finance it.

Modification in your home: Most people have some desire to modify their homes with the passing of time. Using a personal loan, you make necessary improvements in your home.

Debt consolidation: Take off some burden of costly debts with a higher interest rate. A personal loan can help you to manage repayment with a single loan.

6. Digital Processing for Instant Disbursal

Financial markets are technically abundant which makes applying for personal loans easier. Lending institutions meet the increasing demand for personal loans with digital processing. You can make the application online, accompanied by necessary documents in digital form. The lender will scrutinise your personal loan application and approve it. Loan disbursal is fast and convenient with a direct bank transfer option. You can receive the loan funds in your bank account.

7. Apply for a personal loan with a co-applicant

If you have maintained a good credit score of 630+, you can get a personal loan easily with Clix Capital. If your credit score is lower, you can consider a co-applicant to apply for a personal loan. It will make it easy to get a personal loan. Apply online for quick approval to meet your financial requirements timely.

8. Transparent Financing Option

A transparent personal loan is essential to enable individuals to select the most suitable option for them. The personal loans market works for the consumer’s interests, and lenders offer personal loans with greater transparency throughout the application process. It enables individuals to make better-informed decisions concerning their financial situations. Online personal loan applicants are more likely to have a flawless borrowing experience with leading NBFCs following completely digital processing.

9. Convenient Repayment Options

You can repay your loan during a convenient repayment tenure. Lenders allow you to choose the tenure from 24-60 months, considering your current and expected finance. You can consider applying for a long-term loan if you find it challenging to manage a high amount of EMI as it is a regular monthly payment. If your financial conditions allow and you expect extra money in the upcoming months, you can consider a short-term loan and prepay the loan to close the account sooner. You can utilise an online personal loan calculator to estimate your loan EMIs and schedule the loan repayment accordingly.

You can choose a convenient monthly amount to repay the loan and suitable repayment tenure using a personal loan calculator. Thus, loan applications are subject to credit approval based on easy-to-meet eligibility criteria.

A personal loan with renowned loan providers, like Clix Capital, can meet your financial requirements within a working day.

Just provide your mobile number to get assistance from the lender. The consumer representative will connect with you shortly.

Trisha Oberoi
Trisha Oberoi
I turned my can'ts into can's and dream into plans and things begin to change.

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