The market for personal loans is very high in India. With the banks now even offering pre-approved approved personal loans at really low rate of interest i.e. 11.50%, everyone who needs money goes for personal loans. Enlisted below are certain advantages and disadvantages of personal loans in India:
Advantages of Personal Loans:
- Easy to Avail: Availing a personal loan has now become a child’s play. You can easily apply for personal loans upto 25 lakhs at nominal rate of interest of 11.50% for maximum loan tenure of 5 years depending on the banking and your eligibility to avail personal loans. A number of banks offer pre-approved personal loans to its reliable customers. You can make use of Letzbank portal to compare various personal loans offered by a number of banking and non-banking financial institutions.
- Apply Online within minutes: You can now see your eligibility and apply for personal loans sitting at home or office without involving any third personal. Another easy way is to visit your bank to apply for personal loans.
- No Security/Collateral: Since personal loan are unsecured loans therefore, there is no need for submitting any security deposit or collateral to avail personal loan.
- Less Documentation: Personal loans requires you to just submit your KYC, proof of income and a photograph along with a duly filled application form for you to submit your application to the bank.
- Personal loans for all purpose: No matter If it is a medical emergency, a wedding, vacation, travel, or multiple debts you can apply for personal loan for any reason.
- Quick Disbursal: Personal loans are very quickly granted based on your eligibility and credit score and therefore take least time for processing and disbursal of personal loans.
- Schemes and Offers: Banks and NBFC’s come up with a number of personal loan scheme and offers time and again making personal loan schemes pretty attractive to avail for common man.
Disadvantages of Personal Loans:
- Eligibility Criteria: You need to hold a good credit score having a regular source of income to avail personal loans at low rate of interest. People who not have a good credit score are not granted personal loans at lower interest rates.
- Having a bank account: you need to have a bank account to avail a personal loan through any bank or non banking financial organization. If you do not have a bank account you are not eligible to avail personal loan.
- Fore-closure/Prepayments: Banks offering loan at low rate of interest do not permit the pre-payments. Also, the fore closure charges of such banks are 2% to 5% on the remaining amount.
- Penalty on missed EMI: If you miss to pay an EMI the banks pose heavy penalties to recover that amount.
So, like a coin has two sides there are pros and cons of Personal loans too and now that you are acquainted with all the pros and cons of personal loans choose see what you are getting into when you sign up for personal loan deals. Letzbank offers a number of personal loan product offered by a number of banks for you to choose from. If you wish to apply for quick personal loans online – Visit Letzbank now!