Personal loans are easy to acquire. They come with flexible repayment terms. Depending on your bank, the processing period of a personal loan shouldn’t be within hours of a few days. Here are the key benefits of taking a personal loan.
Easy To Secure
Securing personal loans doesn’t take a lot of time. After filling out the forms and submitting your applications, it takes hours to days for the money to hit your bank account. You don’t need a lot of paperwork.
Use
Personal loans can be used in a number of ways. For instance, you can use a personal loan to finance your wedding. The money can be used to pay utility bills and even rent. Also, if you have an upcoming wedding, you can apply for a loan. A personal loan can be used to finance your dream car.
Flexibility, Versatility
Certain loan facilities are limiting. For instance, you can only use their loans for a specific purpose. However, personal loans are not restrictive. You can use these loans in different ways. From purchasing a car to sorting medical bills, personal loans come with a lot of flexibility. However, it’s important to check with your lender to establish if you can use the loan to finance your explicit needs.
Lower Rates, Higher Limits
Unlike credit cards, personal loans are characterized by low-interest rates. On average, the interest rate of a personal loan shouldn’t exceed 10.46 percent. On the other hand, credit cards come with a higher interest rate of 16.27 percent.
Plus, if your credit score is excellent, you can qualify for a loan with an interest rate of between 6 and 8 percent. Still more, a good credit score means that your loan limit is higher.
No Collateral
A personal loan is actually an unsecured loan. You don’t need to have collateral o access these loans. All you need is a bank account, proof of income, and a credit score.
Easy To Manage
Personal loans can help you consolidate your debts. For instance, you can take a personal loan to consolidate multiple credit card-based accounts. A personal loan comes with a single fixed rate. This makes it easy to manage your loans.
Repayment Schedule
Personal loans are based on installments. This means that they have a fixed repayment term. Thus, you can easily determine how long you will need to repay your loan.
Longer Repayment Terms
Unlike other loans, personal loans come with longer repayment terms. Ideally, a personal loan should be repaid within a few years. The repayment terms can go up to 7 years.
Bottom-Line
Designed to help you during financial emergencies, personal loans are quickly becoming popular. Available in numerous credit facilities, these loans can help you sort out urgent financial matters. The best thing about these loans is that they are easy to acquire. They also offer huge flexibility when it comes to repayments. The above are key reasons why you should seriously consider taking a personal loan.
