Many employees are facing instability in their financial flow with a nationwide lockdown due to the outbreak of Covid-19. As months are spent quarantined at home, most employers have resorted to pay cuts and reducing the number of staff members from their companies making it difficult for salaried individuals. Thus, many money lending agencies like banks are promoting options such as personal loan in order to ease the financial strain during this pandemic crisis.
Personal loans are a type of loan that are taken in times of financial strain. These loans can help you and your family as the financial solution during any kind of medical emergencies, your child’s education or wedding, house renovation, and much more. Personal loans can cater to any financial requirements that your family has. There are two different types of personal loans: secured personal loans and unsecured personal loans.
The secured personal loans are lent in return of a collateral like house or car. The collateral is used as a security by the lender during a default while repaying the loan. Whereas, unsecured personal loans are the type of loans that are given by the lenders without asking for a collateral in return. In this type of loan, you do not have to worry about losing your house or car during a default while repaying the loan.
Why take a personal loan during Corona:
According to the report stated by the International Monetary Fund, India’s GDP has taken an estimated fall of 4.5% due to the current coronavirus pandemic for the current fiscal. Personal loan is the smart solution at a time when the current economy has taken a hit and many employees are going through job cuts. A survey that was conducted by Economic Times recently showed that out of the 3,074 respondents almost 39% faced a cut in their salary which was caused by the impacts of Covid-19. Thus, it is imminent to understand the importance of the role of personal loan during Corona.
Additional Read: Why Are More and More People Opting for Personal Loan After COVID 19?
Pandemic- specific loans:
Pandemic Specific Loans are the kind of loans that are tailored to suit the financial crisis faced during the current Coronavirus outbreak. The most attractive features of Pandemic Specific Loans are:
- It is an instantaneous cash solution that you require during this troubled period of lockdown.
- The entire loan application process is minimal starting with very low processing charges.
- The interest rates of these loans are low and are designed to suit anyone’s financial requirements.
- The repayment of this loan can be covered up to a maximum period of 3 months.
Benefits of taking a personal loan during Corona:
To relieve you and your family from the financial and mental stress caused by the pandemic, many money lenders are offering loans that are designed to ease this burden. These personal loans that are offered are mostly unsecured and have numerous benefits to them. In case you opt for a personal loan during this pandemic, there are quite a few specific advantages that are attached to them.
- The processing time is less as we all understand the need of immediate hassle-free cash. Since these loans are unsecured, time taken to process collateral after applying can be saved.
- You can repay these loans with varied EMI options that are available with each agency. Although do not forget to use Personal Loan EMI calculator before applying for the loan.
- Considering the economic state of the country and current conditions, the interest rates of loans for pandemic are much lower than the usual interest rates of the regular personal loans. The interest rates start around 7% which is much lower comparatively to the normal interest rates.
- These loans are available online, making the entire application process economical and instantaneous.
Additional Read: Why to apply for Personal Loan for Medical Emergencies Amid Pandemic?
The need for extra money in case of emergencies is quite natural. Instability in financial flow causes much distress in the lives of individuals, especially if you are also shouldering the responsibilities of your family. Tata Capital, Tata Group’s financial branch, offers their aid during these harsh conditions of living by offering a personal loan that is unsecured. Tata Capital’s Personal Loans have flexible options to cater all your financial requirements and it can be availed conveniently online.