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Tata Capital > Blog > Personal Use Loan > 9 Features of a Personal Loan that Make it Popular

Personal Use Loan

9 Features of a Personal Loan that Make it Popular

9 Features of a Personal Loan that Make it Popular

Life is full of surprises. All the planning in the world will not save you from the trials that life can throw at you. Instead of putting your goals on hold or pushing your financial responsibilities aside, it’s much better to tackle these challenges head on. 

We’ve all been there. The need for immediate cash is a common problem. Whether it’s a medical emergency or an unplanned wedding, a personal loan is the perfect way to tackle the financial milestones in your life. Although this traditional option is often overlooked, it comes with some unbeatable advantages, which we shall discuss in this article. 

But first, what is a personal loan?

A type of unsecured loan, a personal loan is granted to an individual by a bank or a non-banking financial company (NBFC) to meet a range of personal needs. Here are the main benefits of opting for a personal loan: 

  1. Flexibility of use – A significant advantage of a personal loan is its flexible nature. Unlike a car or home loan, this financial resource can be used for any necessity, without limitations. In other words, the amount you borrow can be used to finance a wedding, travel, education, medical expenses; purchase jewelry, electronic gadgets, etc. Put simply, it’s an easy way for you to get out of the immediate cash crunch you’re in. 
  2. Quick Disbursal – Pre-approval is usually quick. Meeting the eligibility criteria is key when it comes to a quick handout of a personal loan. Having a good credit score is a definite advantage. The time for disbursal depends on the bank or lender but it’s generally within 24 hours; or 72 hours at most. This makes it your best bet in an emergency. You may even be eligible for instant online approval if you are an existing customer of the bank you’re applying to. 
  3. Fewer Documents – To get an approval for a personal loan, only a limited number of documents are required. This makes it faster to process. With an online approval, you will be required to upload scanned documents for verification, after which you will be granted the loan within minutes. This makes it a truly hassle-free process and you can get out of the financial crisis you are in faster than you think.
  4. Minimal paperwork – As with documents, the paperwork that needs to be completed is minimal. This adds to the swiftness of the procedure. If you have any queries, the customer care department of your home branch is there to assist you. They may even send an agent to your location to help with the paperwork. 
  5. No Collateral Needed – If you qualify and are eligible for a personal loan, you will not need to present any collateral. Thus your assets remain safe. If you do not own any assets, this is a definite advantage. Since it is unsecured, a personal loan is considered the best form of gaining urgent financial assistance. Get the initial steps sorted and you are good to go! 
  6. Pocket-friendly repayment – To repay your personal loan, you can opt for EMIs, installments, post-dated cheques, online payment, etc. Typically, flexible tenures are available and you can choose one that suits you best. The longer the tenure, the lower the EMI, and vice versa. 
  7. Attractive Interest Rates – Personal loans come with attractive interest rates, which make them easily affordable by all. This ensures your EMI remains fixed for the entire tenure of your loan. So there’s no need to worry about ever-fluctuating interest rates that characterize other types of loans.
  8. Online EMI Calculator – Use personal loan online EMI calculator to decide what payback time span works best for you. Yes, in just three easy steps, you can figure out the amount of EMI you need to pay every month! A cumbersome process is now made exceedingly simple and you have everything in black-and-white right in front of you.
  9. Tax Benefits – An additional advantage of a personal loan is the tax deduction you can claim when you use this financial resource to pay for (say) renovation or construction of your house. The benefit amount can be up to Rs 2 lakh as per Section 24B. However, it is essential that you provide adequate documentation to show the utilization of funds for the aforementioned purpose.

Tata Capital personal loan is an easy way out when you need money without too much of a hassle. It’s swift, customizable, and transparent – and offers competitive personal loan interest rates. Avail of a personal loan today and enjoy a host of unmatched benefits like never before!