Availing a personal loan is one of the optimal ways to meet your expenses in case of an emergency or any unpredictable situations in life. There are instances where you would want funds to meet your or your child’s marriage expenses, higher education fees, planning your next dream vacation with your loved ones, buying some valuables, or even home furnishing.
Today, personal loan providers offer quick fund disbursal and zero need for surety. Availing a personal loan is one of the fastest ways to get financial assistance in case of a financial crunch, which otherwise would be quite difficult with a regular paycheck. As per the Reserve Bank of India (RBI), personal loan demand has increased to 17.0% in July 2019 while there was an increase of 16.7% in July 2018. Both banking and non-banking services have taken several initiatives to make the process smooth for the borrowers and this has led to an increase in the demand across different age groups.
In addition to this, the Fintech players have come up with innovative and distinct ways to offer credits most seamlessly. With digital adoption, lenders are offering better value to their customers by quick disbursal and have enhanced their overall experience.
The flexibility offered in availing a personal loan is with no pledging is win-win for both lenders and borrowers. Also, RBI has made the interest rate more transparent for borrowers. Along with this, there’s an additional perk for senior citizens to settle with the current level of interest-income has helped them cover their expenses.
Most of the Indian banks and also, Non-Banking Financial Company (NBFCs), and peer-to-peer lending platforms offer personal loans.
Over the years, the process of borrowing personal loans has become more accessible, flexible, and instant. Certain factors make the process smooth, which are listed below:
- Easy application process
Owing to the digitization moment, it is now possible for people to apply for personal loans from mobile at any time.
Moreover, lenders are trying to reach out to prospective new-age customers in a digital way. Everything is online. Another innovative tool which has made the loan application seamless, quick and effortless is the Personal Loan EMI calculator. The personal loan EMI calculator helps to calculate whether you are eligible for loan or not, the EMI you have to pay throughout the loan tenure. All you have to do is add the loan amount, the rate of interest and the tenure; once you add this information, you can find out the amount you have to repay each month (EMI) so that you can borrow with confidence. Personal loan EMI calculator by Upwards has made the process quick, transparent, and easy for borrowers. It helps them to calculate whether his or her income meets the set limit or the specified age requirements, the feasibility to pay EMIs to avail the loan of the required amount.
- High disbursal amount
There are certain personal loan lenders in the market, who provide quick personal loans for both self-employed and salaried employees. You can borrow a considerable amount ranging from Rs.1,00,000 to Rs.25,00,000 based on your eligibility. This high disbursal amount would help the borrowers meet funds demand instantly. Also, factors such as credit score, employer details, age, relationship with the loan provider, nature of the employment, income etc. are responsible for affecting the personal loan interest rates.
- Top-up facility
The top-up facility offered by the personal loan lenders is a cherry on the cake, i.e. this facility can help you to borrow more money by using the top-up plan available for the existing customers. So, if you want to add to your current loan amount, depending on certain factors, you can get a top-up facility. This option by the provider helps the borrowers fulfil any other additional expenses.
- Comes with flexible tenures
Nowadays, personal loans come with the option of flexible option, which means that you can repay your loan in tenures ranging from one to five years. This level of flexibility provided by the personal loan lenders (NBFCs) helps borrowers to pay back the amount in ease.
- Discounts and special offers
The most common parameters to upscale the number of borrowers in the years 2019 is offers. Although the financial service providers or bank may charge a high rate of interest for a loan you have opted for, however, you can always negotiate with the provider or bank for the lower interest rate. There are several instances wherein the lender will offer a discount to the existing customers or provide special offers to the ones who have a healthy relationship with the personal loan provider.
Also, the providers might come up with certain schemes during the festive season, such as low-interest rates.
These are some of the reasons to provide the personal loan in a much more comfortable, quicker and transparent way. Moreover, the Aadhaar-based authentication helped Fintech players overgrow as it is saved on both time and money. Apart from these factors, the change in lifestyle has led to an increase in the number of borrowers.
However, one must carry out enough research and must study the reputation of the bank NBFCs or P2P lending platform well in advance to avoid any unpleasant surprises in the future.