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The Pros and Cons of Personal Loans

IDBI Bank Personal loans offer you flexible repayment schedule and lower interest rates. Avail a personal loan or overdraft facility in easy steps.<br>For More Details Visit: http://www.idbi.com/personal-loan.asp<br>

Sanjaykale
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The Pros and Cons of Personal Loans

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  1. The Pros and Cons of Personal Loans

  2. Should you go for a personal loan? The answer depends on your circumstances. If you have a pressing need for cash, and don't have any assets, but own a credit card, a personal loan is certainly advisable. This is because cash withdrawal using your card is far more expensive than a personal loan. But if you have assets like property, gold or shares, it is advisable to take a loan against these assets since these loans have lower interest rates.

  3. Need money in a hurry without having to go through tedious documentation processing? Want cash to fulfill your need without having to explain the reason for obtaining the loan? Then personal loans are your best ally. You can get them easily in a period as short as 24 hours. All that is needed is to fill out an application form with the lender and the cheque would be delivered to your doorstep within a few days. In some case, the amount may also be credited to your bank account (if you hold savings account with the lender). However before you rush out to get a personal loan, it is important for you to understand the pros and cons of personal loan, in order to make an informed decision.

  4. Flexibility of use: Personal loans are multipurpose. They can be used for various different types of purposes, ranging from travel expenses, medical expenses , purchasing the latest jewellery to electronic gizmos or even house/car improvements.

  5. Quick availability: Getting the personal loans is very fast. In some cases, you can get the loan even within 24 hours. So if you are looking for emergency funds, personal loans are your best bet. Minimal documentation required: Normally, personal loans don't need much documentation, as compared to a home loan or car loan. Hence the processing time is quicker. No collateral or security needed: No need for security is required to obtain this loan and the loan tenure is much shorter compared to home loan or car loan. This has less risk for the borrower comparatively, since if you are unable to repay the loan, your security is forfeited in case of other loans. As personal loans don't need any security, your assets are safe. This makes this kind of loan attractive to those who don't own any assets like car, home, shares etc.

  6. Cons: Despite their apparent attractiveness, personal loan Indiado have their fair share of disadvantages. Prominent amongst them are: High interest rates: As these loans don't need any security, they are regarded as high risk by the lenders. In order to offset their risks, these loans carry very high interest charges. No part payments: Most lenders don't allow part payment of loans. This means you end up paying the loan for the entire tenure of the loan. It can work out quite expensive, since your initial installments go towards interest payments.

  7. Source: http://in.reuters.com/article/the-pros-and-cons-of-personal-loans-idINDEE86M05620120723 Thank You! http://www.facebook.com/idbibank https://plus.google.com/+IDBIBank https://in.linkedin.com/company/idbi-bank http://www.twitter.com/idbi_bank http://www.youtube.com/idbibank

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