Life is a series of unprecedented moments and experiences that may give rise to situations, where we are in dire need of financial assistance. In such circumstances, our monthly salaries might not be able to suffice our emergency requirements, and this is when personal loans come in to save the day and lend us a helping hand in managing our finances with ease.
Whether it's an emergency medical expense, a planned holiday, or a sudden home renovation, having quick access to funds can be cathartic and lifesaving. However, knowing the correct process for availing a personal loan can be a little intimidating which is why, this guide will help you comprehend the concept with ease and lucidity. Read on to find out how.
What is a Personal Loan?
A personal loan is an unsecured loan provided by banks and financial institutions, which can be used for various purposes. Unlike home or car loans, these loans are perfect for those who want to refrain from pledging their property and assets and want to keep the deal collateral-free. The borrowed amount can be repaid in monthly installments over a specified period, and the tenure can be customized as per your financial capacity and loan repayment ability. The primary advantage is the speed and ease with which one can obtain these loans, not to mention the 100% digital process that makes it even more lucrative.
Get Personal Loans with Minimal Documentation
Gone are the days when acquiring a loan required a mountain of paperwork. With instant loans, the documentation process has been significantly simplified. Typically, you only need to provide basic personal details and aadhaar based KYC. This streamlined process saves time and reduces hassle.
Here are some of the key features, advantages, and considerations of such loans:
Key Features of Personal Loan:
Simplified Application Process:
Applying for a personal loan from Airtel Finance with minimal documentation is a breeze! Just follow these simple steps:
Step 1: Download the Airtel Thanks App: Start by downloading the Airtel Thanks app from your preferred app store.
Step 2: Register on the App: Sign up and create your account to get started.
Step 3: Navigate to Shop > Airtel Finance > Top products > Airtel Personal Loan
Step 4: Apply for Your Loan: Begin your loan application right there in the app.
Instant Approval:
Many lenders provide instant or same-day approval decisions. Once approved, the loan amount is quickly disbursed, often within 24 to 48 hours.
Flexible Loan Amounts and Tenures:
Borrowers can choose loan amounts that fit their needs, whether for small expenses or larger financial commitments. You can also get an option to select repayment tenures that align with your financial situation, typically ranging from a few months to several years.
No Collateral Required:
These loans do not require any security or collateral, making them accessible to a wider range of borrowers.
Credit Score Eligibility:
While a good credit score can improve your chances of approval and better interest rates, some lenders may offer loans to those with fair credit, though possibly at higher interest rates.
Advantages of having a Personal Loan:
Convenience and Speed:
The minimal documentation requirement reduces the hassle and time involved in gathering and submitting paperwork, ideal for emergencies where you need immediate access to money.
Digital Access:
Many loans can be applied for and managed entirely online, making them accessible from anywhere.
Transparency and Simplicity:
Loan terms and conditions are typically uncomplicated, with clear interest rates and fees. You also have monthly instalments make it easier to budget and manage finances.
Financial Flexibility:
Personal loans can be used for a variety of needs, such as medical emergencies, home renovations, debt consolidation, or even vacations.
No Collateral Risk:
Since no collateral is required, there is no risk of losing valuable assets if you're unable to repay the loan.
Considerations:
While personal loans with minimal documentation offer several advantages, it's important to consider the following:
· Interest Rates: These can be higher compared to secured loans due to the increased risk to the lender.
· Eligibility Criteria: Despite the minimal documentation, lenders will still assess your creditworthiness and repayment capacity.
· Charges: Be aware of any processing fees, prepayment penalties, or other charges that may apply.
· Always compare different lenders and read the terms and conditions carefully to ensure you are getting the best deal for your financial situation.
Moneycontrol Journalists are not involved in creation of this article.
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