In the current era, more and more individuals are dependent on personal loans whenever they require instant funds. Downloading the best personal loan app on your smartphone makes things relatively easy. You just have to sign up, and within a few minutes, the amount is credited into your account. For example, around three months ago, I was planning to renovate my kitchen and turn it into a smart one.
This is when I availed a personal loan. Believe me, instead of asking a friend or relative; it’s better to avail a personal loan these days. These loans are interest-free, and you get access to the funds instantly.
What is a personal loan?
It is a type of loan that potential individuals can borrow from a bank, credit union, or an online lender for personal use. These loans are generally unsecured, which means that it doesn’t require collateral like a house or a car. Instead, the loan is approved based on the creditworthiness of the borrower, income, and other various factors.
These loan types can be used for various purposes, such as consoling debt, paying for medical expenses, home renovation, funding a major or expensive purchase. The borrower here receives a lump sum of money upfront and agrees to repay it over a fixed period, typically with monthly installments.
What are the advantages of a personal loan?
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Flexible
Personal loans are versatile and can be used for various purposes, such as funding a vacation/trip, consolidating debt, home renovation, etc. These loan types give the borrower total flexibility to use the funds as per their suitability.
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Credit Building
Once you avail of this loan from the loan apps and make timely repayments can positively impact your credit history and credit score. In addition, consistent repayment behavior demonstrates your creditworthiness to the lenders and can even improve your chances of obtaining favorable terms for future loans.
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No Collateral required
These are typically unsecured loans, which means you don’t need to provide any collateral to secure the loan. This makes it accessible to a wider range of borrowers who may not have significant assets to pledge as collateral.
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Fixed Rate of Interest
They come with a fixed rate of interest, which means that it remains the same throughout the loan tenure. This allows you to budget and plan your repayments effectively since you know exactly how much you need to pay each month.
What are best personal loan offers in India?
Currently, there are tons applications available on the Play Store/App Store that offer lucrative deals when it comes to personal loans. So here, I’ll save you a lot of time by sharing my personal experience.
I downloaded an application called ‘Stashfin’, one of the best instant loan app in India, and I think it is the only application available that offers a personal loan without charging any kind of interest. This means that I paid back the same amount I borrowed.
Here is a step-by-step guide on how to avail loan from this application:
- Download the app from the Play Store/App Store
- Sign up using your mobile number
- Add your personal details to check your credit limit
- Complete KYC and you are good to go!
