Personal Loan Benefits - A Quick Guide

Instant personal loans have become the go-to option for people looking for financial assistance without having to go through the inconvenience of exhaustive paperwork and long disbursal waiting times. Medical expenses, travel assistance, wedding, tuition fee, and much more are covered under personal loan finance.

With pocket-friendly installments to quick credit of the loan amount requiring little to no paperwork, are a few of the many benefits of taking out a personal loan. 

But how do they work and what advantages can they offer the applicants? Let us find out.

How Do Personal Loans Work?

Personal Loan Benefits

There are two main types of personal loans: secured and unsecured. Both come with their own set of benefits and serve different purposes.

With secured personal loans, the applicant has to offer up collateral in order to avail the amount. Usually, the collateral required for personal loans are owned and worth the same as the loan amount. This is done in case the applicant is not able to pay the money back. Some examples of secured personal loans are mortgages for a house or auto loans.

Unsecured personal loans are the most commonly applied for personal loans, as they do not require collateral. While that means that the lender would not be able to claim any assets of the applicant, it does not mean that it is repercussion-free. If the applicant defaults on their payments, it can significantly hurt their credit scores and raise the applicant’s cost of borrowing. Unsecured personal loans usually come in handy for purposes like weddings, student loans, etc.

The applicant, in both cases, receives the loan amount as a lump sum credited into their bank account. The interest rates to repay the loaned amount is fixed in most cases, and the loan can be paid back in installments over a fixed period of time decided mutually by the lender and the applicant.

Personal Loan Advantages

There are many appealing reasons to get a personal loan, such as:

  • Convenient Online Process

You can apply for a personal loan seamlessly online on the Finnable personal loan app or website within minutes. The application and approval process is lightning-fast with no paperwork required. The online KYC process is straightforward, and the applicant can explore a multitude of options to check for personal loan interest and more.

  • Quick Credit

The applicant will receive the loan amount in their account within a day after the online personal loan application process is completed.

  • No Collateral

Unsecured personal loans do not require the applicant to offer any collateral for the loan. This can prove to be helpful for people with not much collateral to offer but require loans with a big amount for situations like medical expenses, tuition fees, weddings, and more.

  • Easy Repayment Process

Paying off personal loans is quite easy with platforms like Finnable. You can repay in easy installments with flexible payment terms. You can also choose from an array of options before selecting the tenure of the repayment process. Finnable offers repayment tenures from X months up to Y months.

  • High Borrowing Limits

With Finnable, you can easily avail of personal loans from INR 50,000 up to INR 10,00,000.

  • Easy Personal Loans with Finnable

Get a hassle-free experience in availing of a personal loan with Finnable. With varied interest rates, repayment time periods, and much more to explore, you can effortlessly avail of a personal loan of up to INR 10 lacs within minutes.

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