Personal loans now account for nearly 28% of overall bank credit in India. Thanks to such growth figures, they are among the fastest-growing modes of short-term financing in India.
- The number of personal loan accounts with traditional lending institutions increased by a little over 17% year-on-year during FY 2019-20.
- Nearly 63.5% of all of these sanctioned credits originated in metropolitan areas.
Affordable interest rates are one of the prime contributing factors for these loans’ popularity. Low interest personal loans have thus.
become the preferred types of credit, providing for various funding emergencies, with most commercial lenders offering such advances customised for prospective borrowers.
Reasons to opt for a personal loan
Personal loans from these Non-Banking Financial Companies are versatile offerings that provide several unique benefits. Here’s a quick look at some of the reasons to opt for such a credit.
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Instant approval
Financial institutions providing low interest personal loans offer online application facility and minimum documentation. It streamlines the entire process, significantly reducing the time taken to apply and process such a credit.
Prospective customers can follow a step-by-step guide to apply for a personal loan to ensure a hassle-free application process further. Borrowers can thus receive money in their accounts within 24 hours* of applying for credit.
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High loan quantum in a lump-sum
Eligible applicants can avail as much as Rs.25 lakh as a personal loan from lenders like Bajaj Finserv. Such a high loan quantum can prove helpful in meeting any financial requirements. These credits do not come with any end-use restriction, and borrowers can utilise the sum for any requirement that they deem fit. One can even apply for such an advance to pay off his/her existing debts.
Its borrower-friendly terms and affordable interest rates are among the main reasons.
one should apply for a personal loan for debt consolidation.
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Flexi loan facility
Borrowers opting for a personal loan from lenders like Bajaj Finserv can benefit from the Flexi loan facility with lowered EMI payments as well. It allows a customer to withdraw from a pre-sanctioned limit whenever he/she requires funds. Also, interest is calculated based only on the sum borrowed, helping save a significant amount on the EMIs payable.
For example, suppose a customer avails a low interest personal loan.
In this case, his/her loan EMIs will be Rs.83,036, and the total interest payable will be Rs.4,89,289.
However, if the customer draws only Rs.5,00,000 using Flexi loan facility, he/she will pay only Rs.16,607 as EMIs. Such a financing facility will thus allow customers to utilise funds as they require, without worrying about paying hefty EMIs.
Interest calculation
Nevertheless, one must also check the interest calculation type, i.e. flat and reducing interest calculations.
It should help them better understand the difference between flat and reducing interest rate.
as well as its impact on such facilities.
The lending institution also extends pre-approved offers to existing customers to eliminate the hassles in loan processing and help save time. One can avail these offers on several financial products, including personal loans, business loans, and credit cards. You can check your pre-approved offer only with your name and contact number.
Such a personal loan can prove significantly beneficial, primarily to mitigate emergency financial requirements. With its affordable EMIs and borrower-friendly terms, one can easily repay the debt without any financial strain.
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