In many cases, a borrower needs to keep a collateral with the lender to get a loan. However, that is not the case for a personal loan. A personal loan is a collateral-free loan.
Personal Loan
Most of us generally tend to prepare ourselves for rainy days, but no one ever saw a global pandemic like Covid-19 coming, which would drastically impact the economy worldwide. This unforeseen challenge has resulted in a severe economic slowdown affecting the livelihood of the masses.
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A medical emergency is a clear example of being in such a situation. The impact of the pandemic goes beyond just medical needs. The pandemic and the resultant economic slump has led to loss of jobs and salary cuts for a huge section of the population, bringing them in a situation where they find themselves in need of money not only for medical expenses, but also to deal with financial issues on other fronts. At this time, many of us might feel breaking the savings to pay our financial obligations and/or unforeseen expenses is not a feasible or a viable option. In fact, this sad state of affairs even led many people to turn to unauthorized lending apps, which eventually turned out to be a nightmare for them.
So what should you do if you find yourselves in such a situation? This is where a personal loan from a reliable lender comes in as a savior.
What are personal loans?
In many cases, a borrower needs to keep a collateral with the lender to get a loan. However, that is not the case for a personal loan. A personal loan is a collateral-free loan. Just like any other loan, the money must be paid back over a fixed period of time in equated monthly installments (EMIs). However, unlike many other loans where the usage of funds is pre-determined and cannot be changed -- like a car loan, home loan or education loan -- the funds received under a personal loan can be used for any purpose as per the choice of the borrower.
Situations where personal loans make sense
Whether you are a salaried employee, business owner or a freelancer, a jolt in income can affect everyone. Under these trying circumstances and when we are concerned about being affected financially, a personal loan can help in mitigating any cash crunch. This comes as a ray of hope since salary cuts and decline in business have been on the rise since the onset of the pandemic.
Under normal scenarios, personal loan is typically used for:
- Medical treatment for self or family members
- Education
- Marriage Expenses
- Home improvement
- Business expansion and working capital
- Meeting margin money for purchase of assets so that your budget is not under pressure
- Debt consolidation
In other words, a personal loan helps you in making big purchases and can also help in consolidating high-interest debt. On the other hand, a personal loan used for discretionary expenses, such as a vacation, can be expensive and unnecessary.
Even amid a crisis like the present one, a personal loan can used to pay bills like rent, utilities and other daily essentials. Also, it could help you to keep your ongoing investments on right track and safeguard you from paying off hefty medical bills.
Where to get a personal loan from?
If you have read so far and are considering a personal loan to meet your financial requirements, the logical next step is identifying a good service-provider. You surely do not want to visit a bank branch amid this raging pandemic. The good news is that you don’t need to!You can simply apply for a personal loan froman online marketplace like Finserv MARKETS at the comfort of your home.
With Finserv MARKETS, you do not have to worry about choosing a loan-provider from a large pool of financial institutions, as the platform already partners with some leading lenders known for best-in-class customer service. Within this set, you can then choose from a range of personal loan products and compare various personal loan offers from different lenders.
You can choose from loans with interest rates as low as 10 per cent per annum and processing fees as low as 0-5 per cent. The lenders on Finserv MARKETS offer personal loans up to Rs 25 lakh with flexible loan tenures of one year to five years.
You can also take the help of a ‘personal loan eligibility calculator’ offered by Finserv MARKETS to calculate your personal loan eligibility. To arrive at the most suitable loan amount with respect to your repayment capacity, you can also use a personal loan EMI calculator. The complete application process is online and requires minimal documentation. Once the application is approved, the loan amount will be credited into your bank account.
Moreover, you can also use the Finserv MARKETS platform for all other financial planning needs. For instance, the Financial Health Check Report can give you a bird’s-eye view of your financial situation and you can take measures to strengthen your position accordingly.
We are there to back you up! So what are you waiting for? Log on to Finserv MARKETS today to make a good use of the seamless, completely online process to meet your financial needs. In these times when none of us wants to unnecessarily venture out in crowded places or offices, online availability of personal loans right from the comfort of your homecan come handy to sail through this crisis.
https://www.worldometers.info/coronavirus/
https://www.worldometers.info/coronavirus/country/india/
https://www.statista.com/statistics/1125798/india-covid-19-impact-on-job-loss-by-age-group/
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