Top 5 Reasons Why You Should Let Personal Loan Handle the Big Purchases

By Team Newsable | First Published Dec 20, 2022, 2:57 PM IST

A personal loan is a versatile financial product with many unique features. You can use the loan amount for almost any purpose, including sudden expenses, debt consolidation, or large purchases.

Many individuals find their hands tied due to a lack of finances while planning an expensive purchase that could be essential or aspirational. As a result, the purchase plan may have to be deferred till one has saved up enough.

Many individuals believe that they should save before buying to avoid debt. But it is not easy for everyone, especially those with limited monthly cash inflow, like salaried individuals. Saving to purchase a big-screen TV, new laptop, or washing machine can make sense if it is not urgent. But what if that automatic washing machine, smart TV, or laptop with the latest technology you desire is on sale during the festive season? Then it may make sense for most of us to apply for a personal loan online to make big purchases.

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A personal loan is a versatile financial product with many unique features. You can use the loan amount for almost any purpose, including sudden expenses, debt consolidation, or large purchases. Therefore, rather than saving up over time for a much-needed big purchase, most individuals consider a personal loan and repay the borrowed amount in manageable instalments.

Why You Should Let Personal Loans Handle the Big Purchases

Today, leading lending institutions like Fullerton India offer personal loans to make essential big purchases at an affordable cost and flexible repayment tenure. Let us elaborate on the key benefits of personal loans.

Collateral Free Loans - Zero Risk to an Asset

An unsecured personal loan is a great financing tool for big purchases. The lending institutions grant a personal loan based on your credit history and score. You don't have to offer any collateral to borrow funds. Your asset will not be at risk. You can keep your assets safe and get the required funds against a personal loan.

Get a Larger Sanction

You can conveniently apply for a personal loan to finance your big or small purchases. You can get a personal loan with a large amount without risking your assets. It can go as high as Rs.25 lakh. Depending on your eligibility, lending institutions can provide a personal loan of Rs. 50,000 to Rs. 25,00,000 with minimal personal loan documents. Use the amount as per your needs and make big purchases. There is no end-use restriction on personal loans.

Easy Repayment Schedule

Repaying a personal loan is easy with manageable EMIs. You can choose a loan tenure to repay the loan without worrying about an unaffordable monthly instalment. Lenders offer personal loans with flexible tenures, typically ranging from 12 to 60 months. Spread the loan amounts as per your suitable tenure and pay off the entire loan amount comfortably. To plan your repayment schedule, you can use an online EMI calculator and estimate your EMI over different tenures. Pick a suitable tenure that suits your paying capability.

Easy Eligibility Criteria

To meet the rising demand for personal loans, lending institutions have eased the eligibility criteria.

For any loan applicant, a CIBIL score of 750 or above is required, which can be maintained with timely repayments of existing loans or credit card bills.
Your age should be 21 years (when making a loan application) and less than 65 years (at loan maturity).
The minimum income required for personal loan eligibility is Rs. 20,000 per month for individuals residing in places other than Delhi and Mumbai.

These are the indicative eligibility parameters that may vary from lender to lender. You can refer to the official website of renowned lending institutions like Fullerton India or install their InstaLoan app to use the personal loan eligibility calculator and check your eligibility for their loans.

Faster Application and Disbursal Process

A personal loan is one of the most transparent and readily available loans in India. The online application process is 100% digital and paperless, enabling individuals to get personal loans to make big purchases. Quick loan disbursals make personal loans online more attractive. When you apply for a personal loan, you need not wait for days to get the required funds. Lending institutions can disburse funds shortly after loan approval. You should know that the personal loan approval procedure is much faster on lenders' mobile applications. If you have a pre-approved loan offer from your existing lender, it can be processed quickly as personal loan documents required by the lender are already scrutinized.

Personal loan interest rates are lower than credit cards, starting at 11.99%* per annum only, which helps you save money on interest payments.

Thus, when used prudently, a personal loan brings several notable benefits. You can repay the loan without putting excessive strain on your monthly budget, making it an excellent option for individuals seeking a personal loan online to fund their big-ticket purchases. Grab that special sale opportunity even when you are short on finances.

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