Personal loan- benefits, uses, eligibility and more

Do you have any information about personal loans? Personal loans are unsecured types of loans that do not need security or collateral to be submitted for availing the loan. Like any another type of loan, you must repay the loan amount in monthly installments (EMI).

Personal loans provide funds to you that you can use for different purposes, like paying for education, planning tour, dealing with medical expenses, etc. You can also use a personal loan to meet your day-to-day expenses.

If you want to take a personal loan, this article consists of important factors like benefits, eligibility, uses, etc., that you should know.

Benefits of availing the personal loan

As it is an unsecured loan, you do not need to submit collateral. Along with this, there are several benefits of availing a personal loan

• Used for any purpose

One of the best things about a personal loan is that you can use this loan amount for multiple purposes.

You can use the personal loan amount for managing your education, planning your tour, meeting daily expenses, dealing with medical conditions, home renovation, etc.

• No collateral or security is needed

No collateral or security is needed to avail a personal loan. There is no need to mortgage your home just because you want to take a much-required vacation trip.

• Less documentation needs

There is less documentation needed to avail a personal loan.  All you must submit to secure the personal loan is address proof, ID proof and income proof.

• Flexible payment terms 

Another reason people prefer to take a personal loan is flexible payment terms. You can easily choose the loan tenure according to your suitability.

• Tax benefits 

You can get tax benefits on personal loan interest rate payments under the personal loan. You can avail the tax benefits when you use the personal loan to construct, buy, or renovate the home.  

Uses of personal loan

There are many ways in which personal loans are used. Here is an outlook on the uses of personal loans.

• You can use the personal loan amount to continue your higher education. Then avail tax benefits on interest payments.
• You can use the funds from a personal loan to handle marriage-related expenses.
• You can also use the personal loan to buy a new phone or laptop with state-of-the-art features.
• You can also manage your travel and plan the tour by using your loan amount.
• You can meet your day-to-day needs with a personal loan

Eligibility to avail a personal loan

While applying for a personal loan, you must determine whether you are eligible for this loan or not by checking the following requirements.

• Your age must be between 21 to 60 years.
• You should have a good income source or stable earning
• The applicants are eligible if they earn a minimum of INR 25,000 per month.

Conclusion

A personal loan helps to meet your financial and emergency needs. You can use the funds from a personal loan for multiple purposes.