05 JUNE, 2020

Whether you are an employed individual or run a business of your own, financial emergencies are inevitable. The COVID 19 crises have  immensely affected our lives and also gone on to crush our financial planning. You may need added financial assistance to fulfil your personal expenses or cover medical emergencies. In such an instance, a personal loan can be your aid. Personal loans are offered by various financial banks and are an extremely great choice for fulfilling your unexpected fund requirements. This type of loan can be used diversely and thus makes it a good pick in times of the COVID 19 pandemic.

Read on to know more of the several benefits that make a personal loan highly-suitable for serving every kind of financial emergency.

  • No collateral – A personal loan is an unsecured loan and thus, the lender does not require you to provide a collateral. Collateral includes any kind of valued asset that provides a form of security to the bank against the borrowed funds. This aspect is extremely useful in times of emergencies where you may find it difficult to produce collateral.

  • Online processing – It is easy to apply for a personal loan at a bank branch through the traditional way, however, you can also choose to opt for online processing. This makes the lending process even easier. With the need for minimal documentation and quick processing, you can access an online personal loan with much ease. The loan amount is directly transferred into your bank account after the approval of your personal loan application.

  • Flexible repayment tenure – Personals loans are offered with the option to make repayments with flexible tenure options. Depending on the amount borrowed, the loan tenor can extend anywhere from 1 year to 5 years. The payments are typically scheduled in the form of EMIs and this helps in better financial management.

  • Faster processing – As compared with other types of available loans, personal loans are processed at a much faster rate. The documents required are not as elaborate and this makes it easier to source them quickly. The processing time is in turn simpler and shorter. Thus, this encourages a large number of people to turn to a personal loan in the time of an urgent financial need.

When getting a personal loan, it is essential to consider a number of factors which include personal loan interest rates, hidden charges (if any), eligibility criteria, and more. It is also imperative that you consider a banking institution with a good reputation.

Additional Read: Tips to get the best Personal Loan Interest Rates



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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.