Financial emergency can knock your door anytime. Many people opt for loans in a financial emergency. Loans can help you with finance. You can always seek help from the bank instead of spending all your savings during financial crises. Using your savings during financial crises would not be the best idea.
Bank offer a personal loan to the ones who need financial help. One can apply for a personal loan in any financial crises. You might need a loan to finance your education, medical expense, world tour, new business start-up, wedding and much more.
Apply for a personal loan:
Applying for a personal loan is easy. You can either apply for personal loan online or by visiting the bank to get the process done. Applying online for a personal loan can be easy and time savings. It takes around 24 hours for your loan application to get approved. But if you have a bad credit score you might face a rejection or your loan application process may take time. Whereas, having a good credit score help you with the application process by making it faster.
Though you have a good credit score rating but having a less income can be the reason for your loan application being rejected. Also if you are already under the burden of EMIs then the bank may rethink about your application.
If your application is rejected due to income, go for a joint personal loan. Not submitting proper documentation can also be a reason why you are been rejected for a personal loan. Spelling mistakes, improper documentation arrangement, not attaching income documents and much more such problems related to documentation can lead to a rejection. Cross checking your documents before applying can be helpful to avoid documentation problem.
Personal loan EMI:
Interest rates on personal loan are generally high. But interest rates charged by different banks differ. Some banks can charge you high interest rates whereas some may charge you with low-interest rates on the same amount. Interest rates charged by banks often depend upon the amount that you are going to borrow plus the loan tenure of your borrowed amount.
If the borrowed amount is low then the interest charged will also be low and if the amount is high then the interest rate charged on it will be high. As the interest rates depend upon the loan tenure, you can either go for a long-term period or a short-term loan period and vice versa. The interest that you are charged with totally depends upon it.
After the demonetization, the interest rates charged on all loans have been lowered down. So this can be a good opportunity to grab on if you are going for a personal loan. Having a good credit score can also help you pay less interest rate over your borrowed amount. Whereas having a bad credit score can reverse the situation. In the case of a bad credit score, banks can charge you with higher interest rates.
Benefits of personal loan:
If you are going for a personal loan then the amount that you get on your loan can be used to manage any financial emergency. But in case if you only go for a home loan or a car loan or for that matter any loan, your usage of the loan amount is very limited. The amount that you borrow under these loans can only be used for those certain criteria. But for example, if you are borrowing a home loan, the money can be used only for your home, whereas, a personal loan fund can be used for buying a home and also a car.
The personal loan also offers you two options. You can either go for a secured loan or an unsecured loan. You can go for any option which every suits you more. Availing a personal loan can help you get rid of your financial burdens but it is necessary that you check the credentials of the bank properly.
Published by Tranding Stories