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What are the Benefits of Availing of a Personal Loan? A personal loan seems the fastest and easiest credit helps when you are stuck in an emergency. With its easy application and multipurpose usage it can help to meet all financial needs easily. Now, instant personal loans are also available online hence applying for them anytime from anywhere has become possible. With no questions asked it can be a perfect solution for all the monetary crunch, you can have. But it’s not just that it lets you meet your cash needs it can also help you in many other ways. Let’s dig in and check out five benefits of availing a personal loan- Top 5 Benefits of Taking a Personal Loan 1. Opens and builds your credit history: The credit history is essential for approval of any Credit option. When you take any loan for the first time it can be dependent on many factors like your income, financial liabilities, DTI ratio etc. Because then your credit history is not there to prove you as a potential borrower. A personal loan opens up the credit history and starts building it bit by bit. The loan, every EMI you pay back, any default
in repayment, and other loans you take; are the factors of credit history. After you apply for one personal loan all these things start reflecting and hence any loan in future becomes very easy to apply for. 2. Quick approval and disbursal: An Instant personal loan is simple to apply for and comes with instant approval and disbursal features. You can apply for it in an easy online application process and meet your cash needs within a few hours. Instead of borrowing money from friends or family, it can be a faster credit help for you. If your credit history is in good shape you can avail of a personal loan without any collateral. Even if the credit score is not performing well you can avail of a personal loan but the rate of interest can sometimes be comparatively higher. In either case, it can be a quick solution for all your financial requirements. 3. No limitation on use: A personal loan is free of any restriction on its use. Starting from education, medical, shopping, travel or any other expenses you can use it for all. It works like a one-stop credit solution for all your financial needs. Often the loans like car loans, education loans or house-building loans or purpose a specific. Using them you cannot meet other cash needs you get. But with a personal loan, you are free to spend it on every need you may have. 4. Disciplined and fixed repayment: A personal loan is given in lump sum and paid back over a fixed period in fixed instalments. It comes with a fixed rate of interest often hence the calculation of interest is straight and simple. It helps you to plan your budget accordingly and hence you can save from failure in repayment. With the auto deduction, you can put back the EMI on the very date of credit of your income. It saves you from any late payment or glitch in on-time repayment covering your loan in full on time. It also helps to strengthen your credit score by saving you from any default in payment. 5. Tax Benefits: The usage of a personal loan can bring in many tax benefits for you. Suppose you used your loan for constructing or renovating your house then you can seek a deduction u/s 24B for up to Rs.2,00,00 on the interest paid. Keeping all the documents and papers up to date will save you money while you have borrowed them already.
An instant personal loan online is easy to avail of and comes with no restriction on its use hence it’s a multipurpose credit tool for you. Whether you are stuck in an emergency or need to spend money for any other thing it can help you in no time. While it has many benefits its fixed rate of interest can sometimes be a challenge for you. Because irrespective of the usage of the money you have to pay the interest from day one. To beat this challenge you can use a line of credit instead to meet your cash needs. A line of credit Is an approved credit limit out of which you can withdraw money as you need and then only you are liable for paying the interest. Unlike a personal loan on this, the interest is not calculated on the lumpsum amount transferred to your account. While you pay the interest as you use the money hence making it a pocket-friendly credit option. As a salaried employee, you can choose a FlexSalary line of credit as well. It’s a personal line of credit that is extended exclusively to salaried people who have a salary of Rs.8000 or above every month. Its Credit limit varies between Rs.500 to Rs.2,00,00 making it suitable for both your bigger and smaller cash needs. Without any collateral or hard credit check you can avail of it just based on your salary slips and bank statement.
