Be it financing a large purchase or covering for emergency funds; Personal Loans are your one-stop option to avail for. If you want to go in for a Lower Interest rate personal loan, the benefits provided are a bunch,

Versatile

A Personal Loan provides an all-in-one purpose opportunity, wherein it caters to car repairs, medical expenses, a pre-planned vacation, and much more within its loop.

Decent

The Personal Loan Rates are beneficial in comparison to the rates on Credit Cards. Owing to July 2020, the Personal Loan Rates was 11.88%, whereas the Credit Card Rate was 16.04%. If you have a good credit rate, the range of Personal Loan Rates will be 5-6%.

No collateral

Being unsecured, they are not even close to mortgage/ home equity loans. This is an attractive option for those who have nothing to pledge for a collateral.

Multi-offering

Traditional sources are your option. From banks and credit unions to online lenders, you can borrow Personal Loans from anywhere.

No requirements for credits

If you have a bad credit rate, you can still avail yourself of Personal Loans. A few lenders also approach borrowers who have lower stellar credit. 

Note: If you do, you will have to pay an additional rate of 35% or above.

Stagnant

The Rates of Interest levied on Personal Loans do not change. In turn, your payment remains stagnant every month.

Keep it your way

Irrespective of whether you need an amount pertaining to a few dollars or a larger amount, you can look out for a loan that will meet all your needs and subside your queries. 

Note: The available amount will depend on your credit score.

Quick approval

You do not need to stress over banking anymore. It is not a long wait in the case of Personal Loans. You can receive the response the very next day. If your loan has received approval, the bank will deposit the money to your respective bank account in a few days.

Plethora of terms

With various repayment options available on your plate, the tenure ranges from 1-7 years. All of it depends on the lender and credit score.

Apart from the advantages provided, let us dive into the requirements and eligibility criteria of Personal Loans. If you are availing of a Personal Loan from Bajaj Finserv, here it is,

Eligibility criteria & Documentation

• Minimum age: 23 years
• Maximum age: 55 years
• Indian resident
• KYC documents
• ID card
• Salary slips (last 2 months)
• Bank account statement of the salaried individual (last 3 months)

Note: Your CIBIL score will have a thorough check, along with the repayment history.

In this case, if you want to look up other banking institutions, there are many options available.

Note: According to the information derived from sources, the Union Bank of India provides the lowest rates of interest at 8.90%. It applies to a Personal Loan worth INR 5 Lakhs, with a five-year tenure for repayment.

The Lower Interest rate personal loan is given within the Bombay Stock Exchange (BSE) in public and private banks for data compilation. The Processing Fee and additional charges are zero for EMI, but the Personal Loan Rates may vary on the respective banking institution’s terms and conditions.

However, before you decide upon taking up a Personal Loan, there are a list of disadvantages that fall under the same,

Trapped

In case you have a debt consolidation, and you end up using a Personal Loan, you have another loan over your shoulder that you are aware of. Now, the trap sets in when you fill in the debt relating to your Credit Card but charge higher balances. You dig up another hole for you to fall into.

Higher rates

Even though they might guarantee you a lower rate of interest, the advertised rate, in the end, receives a check.

Origination Fee

The fee for Personal Loans ranges from 1-6% of the borrowed amount. This also covers the Processing Fee. For instance, if you borrow an amount of 10,000 with an Origination Fee of 4%, you will have to pay 400.

Fined

You might be penalized with a prepayment penalty. This will only happen if you retire the balance before the term.

Scams

With Personal Loans, you have room for scams. So, be vigilant.

These sets of disadvantages were not provided for you to deviate from the option of Personal Loans. Like everything has a good and bad side, Personal Loans come along with their own set of pros and cons. Avail for them only if you have drained all your existing funds. Do not hurry with decisions and make a wise choice.