An increasing number of consumers are shifting to personal loans to make their purchases, especially the significantly large ones. It is now an increasing trend to convert purchases into equated monthly installments (EMIs) to make sure one doesn’t burn a big hole from their pockets instantly. The reason for this trend is the emergence of personal loans as they help meet any household requirements in terms of buying a house or car, financing children’s education, or even pay for medical emergencies.
What are Personal Loans?
A personal loan is a kind happy wheels unblocked games of unsecured loan that comes with a fixed interest rate and it can be used to make a large purchase or consolidate debt. It is taken by individuals from banks or NBFCs to meet their personal requirements. Personal loans are unsecured in the way that they don’t require any collateral or guarantee. Such type of a loan is provided on the basis of a few factors, such as the individual’s income level, credit score, repayment capacity, and employment history, among other things.
A few benefits of Personal loans:
1. Multipurpose factor
A personal loan can be utilised from any bank or NBFC to finance any personal requirement – from renovating home and funding child’s education to purchasing electronics and funding a vacation. This is one of the biggest advantages of availing a personal loan. They come extremely handy in meeting unexpected medical expenses or funding other emergencies as they have fast processes and easy approvals, if met eligibility. They are also widely used in investing for business, fixing car, or making down payments of a new house.
2. Consolidate debts
If you hold more than one credit cards that are maxed out, a personal loan might come handy to you as well. One can use personal loans to consolidate all the charges into one monthly payment. Furthermore, the interest rate on the loan is typically lower than the annual percentage rates (APR) on the credit cards.
3. Vast loan amounts
In most cases, banks restrict the loan amount in ways that the EMI is not more than 40-50% of your monthly income. This is a huge help as it enables one to have enough to meet other expenses as well. In fact, any existing loans that are serviced to the borrower are also considered when availing a personal loan. For self employed individuals, the loan value is set on the basis of the profits earned as per the recent profit/loss statements.
4. Refinancing student loans
Another advantage of is that they help in refinancing student loans, which can provide a huge financial relief to many individuals. In most cases, borrowers are eligible to avail interest rates that are lower than the student interests, which helps them to pay back the loan faster.
5. Pay for a wedding
Personal loans help in covering the large expenses that big events like weddings demand. Such a loan for extra expenses might save an individual a considerable amount on interest rates, provided it has a lower interest rate than the individual’s credit card. The flexibility offered by personal loans on usage is one of the biggest factors that they are being widely used.
One can avail from one of the best digital NBFC – Clix Capital. They provide instant personal loans with quick approvals and minimal documentation.