Advantages of Obtaining a Personal Loan
No constraint on end use
The fact that a personal loan, as opposed to a mortgage loan, may be used toward anything at all is the primary advantage of getting one of these types of loans. There are no restrictions placed on how the money from the personal loan may be used. In the event that you have an unexpected need for finances, getting a personal loan might be one of the simplest methods to get the necessary amounts.
Personal loans may be obtained in as little as three days if the applicant satisfies the necessary requirements and maintains an adequate credit score. In point of fact, several of the financial institutions provide their current clients the ability to get personal loans approved online.
No collateral needed
You are not required to make any arrangements to provide collateral. This loan is not secured by any collateral. As a result, obtaining it is not a difficult task.
Freedom of choice on the length of the contract
Since the loan may be paid back over a period of up to seven years, you have the freedom to set a repayment schedule that is most convenient for you. When the tenure is longer, the EMI is lower, and vice versa. As a result, you will be able to pick the length of the loan once you have calculated the EMI. Make use of our EMI Calculator in order to determine the EMI.
A constant rate of interest applies
In most cases, borrowers may get personal loans with an interest rate that is fixed. Therefore, the equal monthly payments will continue to be the same for the whole of the loan term. Because of this, you do not need to be concerned about any fluctuations in the interest rate.
If you use the personal loan for the construction or renovation of your home, or if you use it to make a down payment on a home, you may be eligible for a tax deduction of up to 2 lakh rupees in accordance with Section 24B of the Income Tax Act for the interest portion of the loan during a single fiscal year. However, keep in mind that you will be required to submit sufficient documentation to establish that the money has been used only for the stated purpose.