08 APRIL, 2022

A personal loan is one of those few financial products that help ensure that you never have to depend on anyone for your financial needs. With personal loans, you can fulfil your financial needs without having to deplete your savings or liquidate your assets and investments. These loans have been used for a long time, with their value and significance constantly on the rise. People have realised that it is one of the best ways to finance their varied needs without the hassle of complex paperwork or delayed procedure. However, why is it so? Why is the demand for personal loans increasing year by year?

 

Reasons why personal loans are gaining popularity

 

  • Quick

When you need funds urgently, a personal loan is one of the best choices. Take for instance, you are stuck in a medical emergency and need urgent funds to pay for operations and medicines. During such a situation, you have no time to explore liquidating your assets. Instead, you can apply for a personal loan and instantly get approval and disbursal. The best thing is, you need not run between banks to avail one. You can avail a personal loan by applying for it online. You just need to visit the lender’s website/app, fill out the application form and submit the requisite documents to get the money in your account.

 

  • High value

Events like weddings, home renovation often require huge amounts of funds. Why empty your bank account to renovate your house or to fulfil other such needs or wants? With high-value loans, you can change the furniture of your house and buy new upholstery for your living room. Similarly, you can hire the best caterer and book the biggest venue for your wedding functions.

 

  • No collateral

Once lenders review your documents and details, they require no collateral. You need not furnish any security or guarantor to avail a personal loan. All you need is a good credit score and a regular income source.

 

  • Simple eligibility and minimum documents

One of the reasons why a personal loan is preferred is its application requirement. Unlike other borrowing sources, you need not stress about complex paperwork or stringent personal loan eligibility criteria to avail it. Moreover, the interest rates of personal loans are competitive, and you can repay the loan comfortably over a relaxed tenure as per your affordability and financial compatibility.

Now, when you know why a personal loan is in demand, you must not postpone your wants and needs. All you need to do is to research and choose the best lender and apply for a personal loan to fulfil all your dreams and wishes. However, ensure to check your EMI with a personal loan EMI calculator

 

 

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.