Personal Loan Is Better Than Other Types Of Loans – Let’s Decode

Personal Loan from Private Finance in Delhi

The personal loan from private finance has become quite easy to secure. This is because the personal loan comes without any collateral damage. The need of money can arise at any time. It is totally unprecedented and unexpected. Now the financing institutions have made it easier to secure small funds in the form of loans and repay them with the adequate interest rates as applicable. The problem behind the need for cash is that no individual can store that much amount of cash or save it while the other everyday expenses are on the rise. With the increasing inflation and standard of living within the people the importance of saving the money has become a troublesome task. Thus to cover up for the various other expenses, people tend to move towards the banks and financial institutions. These institutions provide various types of loans as per the need and requirement of the customer.

Various types of loans are available for the customers such as car loan, home loan, gold loan and personal loan. Out of all these loans, the personal loan from private finance in Delhi is easy to afford. The personal loan is considered to be more fluid than the other type of loans. This is because the personal loan can be used as per the requirements of the customer. The customer need not have to state the reason for the need of the loan. A personal loan can be used to pay for the medical expenses, marriage expenses, vacation expenses or to clear off debt. While the other loans such as car loan or home loan bind the customer to invest in that particular domain only that too notifying the bank. Personal loans do not require any prior notification from the customer about the investment of the money.

The other reason being that the personal loan charges lesser rate of interest than the credit facilities. If someone wants to start a new business or have to pay through credit facilities offered by the bank then it will be costlier than a personal loan. The personal loans are easy to sanction. It does not require too much paperwork and background investigation from the bank. There is also no need of any guarantor for applying. This saves the headache of finding a suitable guarantor who can vouch for the customer. The loan can be sanctioned within 24 hours to 7 days. This is because it does not require paperwork and unnecessary documents as compared to other loans.

While these above conditions may seem very motivating for any person to apply for the personal loan, there are a few on which the banks do not give any leverage. These conditions are strictly followed by the banks and had to be fulfilled by every person applying for the loan. These are –

  1. Your credit history or your credit score should be in accordance with ideal credit score. If your credit history shows any dark spots or is not able to pursue the bank employee to grant you the loan then it may become very difficult to get the fast cash loans.
  2. Your annual income plays an important role in deciding the amount of loan being granted to you. The personal loan allied to you is in the range of your annual income and that you will be able to cover up for the overhead cost.
  3. Some people may think that it is not important whether you work in which firm but for loan granting agencies and financial institutions it is important. The banks and financial institutions look at the profile and the firm in which you work for. This helps them to decide upon you and can reach them if any discrepancy arises. Thus it is important that you work in a reputed firm as it makes the application process much faster and easier.
  4. The number of years you have worked in a particular organization or company. This shows your stability and positive track record. It gives a confidence to the banks and the financial institutions over the lender.
  5. The last but the most important is the last three years income tax return.

Once you have completed with all the legal formalities and ready to apply for the loan you can check your eligibility criteria. Various banks offer online portal which can help you determine your eligibility criteria.

The rate of interest for the personal loan may appear to be higher than other loans. This is because the loan is sanctioned without any guarantor and any background check. Thus the banks and financial institutions charge extra interest on the principal amount. This can be a dissatisfying for some people but the early engagement and fast processing covers up for it. Also, the loan amount is sanctioned without any question of purpose and can be easily paid off within a certain period.