As a digital lending platform, we are often asked about reasons for which someone can apply for a personal loan. What makes a personal loan the best option for quick funds? What is a personal loan needed for? There are many people, like you, who do not know about the different purposes of applying for a personal loan. Before we look at what a personal loan is needed for, let’s look at what a personal loan is, why it is a good source for quick funds, what is the eligibility criteria for a personal loan, reasons why your personal loan application can be rejected with Loan Singh and how you can pay your personal loan EMIs regularly.
What is a Personal loan?
Personal loan is an unsecured type of credit, that is availed to meet financial needs. As it is an unsecured credit, there is no mortgage or collateral needed by Loan Singh. As no collateral is needed, Loan Singh looks at your credit bureau score to understand how prompt you are with your credit responsibilities. Based on how good your score is, your personal loan application is approved. The report helps Loan Singh to mitigate any risks in loan EMI defaults. A personal loan from Loan Singh is advantageous because there is no paperwork involved. With a digital process, everything happens online. No collateral also means that time is saved in cross verifying collateral papers, references etc. Loan Singh treats it as a moral duty – to serve the under-served credit worthy Indians, who get their personal loan application rejected by banks for various errors. Salaried professionals with no credit history are thwarted by banks, but not so with Loan Singh. If you are salaried for the past 3 months, you can get a personal loan with no credit history. Similarly, you as a borrower can also find personal loan as a great option for your financial needs.
Why Personal loan is a good source for quick funds?
The times of financial emergency can hit any one of us. Loan Singh’s endeavor is to serve the credit starved people of India, who are left with close to zero options after rejection from the banks. Let’s look at some reasons of a personal loan being a good source for quick funds.
No collateral, security or guarantor
Having no collateral gives personal loan an advantage, over secured loan, because you can get funds even if you do not own any fixed assets. Plus, no guarantor is needed for availing a personal loan with Loan Singh.
The different purposes could be purchasing electronic gadgets, home improvement or repair, job relocation, medical expenses, wedding, holiday travel and purchase of household appliances.
The personal loan process at Loan Singh is hassle-free because there is no hefty paperwork or running from bank to bank or filling multiple forms. You can apply for a personal loan from the confines of your home, and get the loan approved in just a few clicks. You also don’t have to worry about the physical storage of approved documents or attested photocopies, like in traditional lending solutions.
Less time consuming
As the whole process from approval to disbursement is online, you avoid the time and fuel wasted in visiting the bank repeatedly to submit documents and forms.
No prepayment penalty
At Loan Singh, you can clear a personal loan ahead of tenure with no prepayment penalty – unlike banks.
Personal loan eligibility checklist
For availing a personal loan from a digital lending platform, like Loan Singh, you need to be eligible. Mentioned below are some parameters to be eligible for a personal loan.
The minimum monthly salary that you should be earning is Rs.15,000. You must have enough balance left each month, for personal expenses, once all the loan EMIs are paid. You must be of at least 21 years of age, and of Indian nationality.
Credit Bureau Score
You will be deemed credit worthy, only if you have been prompt in your credit responsibilities such as loan EMI repayments and credit card bill payments. If you have no credit history, you must be salaried for at least 3 months to be considered eligible.
What is a personal loan needed for?
There are many purposes for availing a personal loan. Some of them are
Whether it is a honeymoon trip round the world or visiting friends or family, you can avail a personal loan to satisfy your wanderlust.
An accident or dire illness can rupture your financial planning dearly. A personal loan is perfect for such circumstances where quick funds are needed.
Your wedding requires nothing but the best. A quick personal loan can pay for the music, venue and dining; making sure you have the best wedding ever.
More financial needs that can be solved with a personal loan are hair transplant, home improvement, gadget funding, online shopping etc.
How to pay your loan EMIs without a hitch?
Some tips from Loan Singh that can help you pay your loan EMIs without any problem are:
Pay your EMIs on time
Generate urgency when coming to pay loan EMIs. Remember your credit bureau score can take a beating if you do not pay the loan EMIs on time. If you are absent minded, keep reminders or set an auto debit feature for direct debits from your bank account.
Set up a budget
A good budget will help you to have the money to continue making prompt EMI repayments. Tweak your budget as and when you get a raise. If you are someone who likes to spend big all the time, ensure you do not put your regular EMI payments at risk. A good budget also includes proper tracking of expenses.