As you know, you need assets to apply for a secured loan if you are wishing to have the loan at lower interest rates. Even sometimes you arrange enough assets to apply for a loan but the documentation process can create a real delay because all of it so tedious and time taking. The gold loan market is on growth this time but again you need gold to apply for a gold loan and a credit card loan is really expensive. So what you should do? In this case, you can always apply for a personal loan. Personal loans are the loans that you must plan carefully. But the two words that describe the personal loan are ‘quick’ and ‘easy’. That is the main reason that many people prefer personal loans over any other type of secured loans despite higher interest rates. Like gold’s purity can be measured by the ‘hallmark’. Like that these two words describe the personal loan. Personal loan eligibility is very easy to fulfil, you just need enough number of documents available with you and you are good to apply for a personal loan.
Personal loan tenure may vary from bank to bank. But its tenure can range from 12 to 60 months. Some banks or NBFCs offer the loan for 6 to 7 years but that is an exception.
Taking a long term loan has can be many advantages:
Cash flow: Capital is a source that is limited. If you take a personal loan to invest it in any business. Then you know business is a place that gives you returns after some time. So it is obvious that you need more time to repay the loan. As some cash should always be handy with you for emergency situations. So it is always better to apply for a long term tenure for the balance processing of the capital.
Improve your credit score: You will always earn some credit score whenever you will repay your EMIs. So long term loans can help you to earn higher credit points from one loan only. Which will eventually helpful to you to apply for more personal loans in the future.
Top-up loan eligibility: In the case of long term personal loans. If you cross the time period of one year and you do not default any EMI repayment. Then you become eligible to have access to the top-up loan for the remaining four years time period. This facility is not available for you in any other type of loan.
Personal loans can be applied at any nearby branch of your home. Many banks and NBFCs like HDFC Personal Loan, etc. offer personal loans at affordable interest rates.