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How Is Personal Loan Beneficial?

Jan 5, 2021 10 min read

How Is Personal Loan Beneficial?

When borrowing money from banks or Fintechs or any lenders, there are multiple options that the applicant comes across. The loan structure is bifurcated into two major categories - secured and unsecured loans. The basis of this bifurcation is the requirement of collateral and the purpose of the loan. Secured loans are essentially the ones that require the borrower to provide an asset to the lender as security. Some of the secured loans are home loans, loans against property, loans against insurance policies, gold loans, etc. In unsecured loans, the borrower need not submit any collateral to obtain a loan amount. Some of the unsecured loan options include instant personal loan, short term business loans, two-wheeler loans, etc.

A personal loan is a loan amount that can be used for a variety of purposes such as, pay for home renovations, credit repayment, wedding loan, to go on a holiday, etc. If you have any personal expenses to meet, a Personal loan will be a good option. You can apply for a personal loan with a bank, credit lenders, or various online lenders.

What are the benefits of personal loans?

Personal loan amounts can help you in various ways. If you have any emergency fund requirements or you want to go for a vacation, applying for a personal loan won’t be a bad option. You can repay personal loans within the decided timeline in easy monthly installments as well. Among many, here are a few benefits of applying for a personal loan.

No collateral

As mentioned earlier, the personal loan is an unsecured loan hence the borrower does not have to provide security or collateral against the loan amount. You can apply for the loan and after verification and approval, the loan amount will get transferred to your account.

Instant Application and Disbursal

With various online lenders and Fintech firms emerging in the market, applying for a personal loan has become easy, and getting approval on the application has become quicker. At Zavron, your loan application is scrutinized and approved instantly. It takes a couple of minutes to determine if you are eligible for the loan.

Less Documentation

Since there are no securities or assets involved, the documentation is nearly half as that in the case of unsecured loans. The personal loan application is usually approved with minimal documentation. This makes the process hassle-free and convenient for the borrowers, making the process seamless and faster. The loan facility is available for self-employed and salaried individuals.

Flexible Repayment Options

Usually, the lenders provide flexible repayment options on personal loans. The borrower has the option to select the repayment and EMI option at competitive interest rates that are most suitable for them. This makes the personal loan experience less tedious and an easy option when it comes to acquiring funds outside of income.

How can you apply for a personal loan?

Applying for a personal loan at Zavron is very easy. The loan application can be filled online with minimal documentation. Here are the steps to apply for a personal loan with Zavron:

-  Visit our website www.zavronfinserv.com

- Click on ‘Apply Loan’ tab in the right corner above

- Fill the loan application form which has particulars including, type of loan, full name, contact number, and your message.

- Once you fill out the details, submit them.

Post submission, we will quickly verify the details and let you know of your eligibility.

- Submit the documents after the application approval. The list of documents required is - KYC Documents (Aadhaar Card, PAN Card), Salary slips or business documents, and Bank Statements.

- We will verify the documents and let you know the loan amount you are eligible for.

- After a quick verification, the loan amount will be disbursed to your account.

Utilization of Personal Loans

The personal loan can be utilized in so many ways, however, here are a few ways you can use your personal loan amount.

To pay bills in case of an emergency -

If you encounter any medical emergency and are running short of funds, a personal loan can come to your aid. The quick loan approvals will help you pay your medical bills easily.

To make purchases -

It might be a case where you may not have sufficient funds to make purchases that are highly important. In such cases, you can avail a personal loan and fulfill your needs. Some of the purchases can include, a laptop, smartphone, camera, etc.

To renovate a home -

If you are planning to renovate your home, availing of a personal loan can be an option for you, whereas buying a home may require you to apply for a home loan.

To consolidate debts -

In case you are to keep off the burden of various small loans off of you, you can refinance them by taking a debt consolidation loan.

To plan a wedding or go for a holiday -

Planning a wedding or vacation to your favorite location can call for some extra finances, a personal loan can cover you there without any hassle, making the experience a joyful and memorable one.

FAQs

  • What are the other benefits of a personal loan?

Ans. Apart from the benefits mentioned above, the borrower can avail loan more than the credit card allows. They can get loans at a lower interest rate, easy repayment options will be beneficial too.

  • Is a personal loan a good idea?

Ans. To achieve any financial goals, meet unexpected expenses, or acquire assets, a personal loan can be a good option.

  • Does a personal loan hurt your credit?

Ans. A personal loan will not hurt your credit if you engage in timely repayment, and do not exhaust the limit completely.

  • Can you pay a personal loan early?

Ans. Yes, you can repay the personal loan early off. However, do check the terms and conditions with your lenders.

  • How do you pay back the personal loan?

Ans. The personal loan can be paid back according to the timeline decided between the borrower and the lender. The interest charged on the loan amount is also as per the discretion of the lender.

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