We all get caught in scenarios where we have to meet financial obligations. Not at all times, we may find a friend who could help us with some money. Lending money on interest from an unregistered lender can get you in legal trouble. It is why many people apply for a personal loan from registered sources to meet their financial obligations. Are you searching for EMI on a personal loan of 5 lakhs or some other amount? Read on to know why one should register for a personal loan in the upcoming festive season.
Personal loan: definition
A personal loan enables you to borrow money to meet financial obligations. People can take a personal loan to eliminate debts or plan a marriage function. There are infinite reasons that compel people to go for personal loans. Banks, credit card providers, and online loan platforms can help you get a personal loan. Usually, the money borrowed via a personal loan has to be repaid over time with interest charges. Usually, personal loan providers also decide on a fixed duration for the loan repayment.
A personal loan is entirely different from a house loan, education loan, and any other type of loan. An education loan can be used only for paying educational fees. On the other hand, a personal loan can be used for various reasons. Also, the EMI on a personal loan of 5 lakhs will differ from a student’s or mortgage loan’s instalments. Unlike a credit line, the amount borrowed through a personal loan must be paid in the predefined time.
Understanding the types of personal loans
Before you apply for a personal loan this festive season, you should know about the types of personal loans available. Many people believe that all personal loans are unsecured. While most lenders offer unsecured personal loans, some lenders also offer secured personal loans. For borrowing money through a secured personal loan, you will have to provide the lender with any collateral. You can choose any cash or physical asset as collateral for a secured personal loan. If you fail to pay the personal loan amount on time with interest, the lender is qualified for occupying your collateral. Many people prefer to go for unsecured personal loans because they do not involve collateral. However, you may be subjected to higher interest rates when applying for unsecured personal loans. You can find a personal loan with an affordable interest rate with some research. With a digital lending platform that allows you to compare personal loans, you can choose one with a lower interest rate.
Why register for a personal loan during the festive season?
During the festive season, personal loans are available at competitive rates. Some of the prominent festive seasons that witness personal loans at competitive prices are Diwali, Dussehra, New Year, and Holi. During the festive season, the application process becomes easy. For example, you can quickly meet the five lakhs personal loan eligibility during the festive season. Besides meeting the five lakhs personal loan eligibility, you may find a loan without collateral during festive seasons. Some other benefits of applying for a personal loan during the festive season are as follows:
• You can find personal loans with lower interest rates during the festive season. You may find a personal loan with a 12-14% interest rate during the festive season.
• During the festive season, loan providers offer a flexible tenure to repay the loan amount. Many reputed banks and digital lenders allow you to choose your repayment structure as per your choice during the festive season. You can choose EMI as per your repayment capacity.
• Several charges like late fees and loan processing fees are lowered by banks during the festive season. You can easily register for a personal loan online/offline during the festive season.
How to look for a personal loan now?
Gone are when visiting the official bank branch was the only way to apply for a personal loan. You can search for a reliable loan provider online and begin your application process. Several lenders allow you to check loan eligibility, calculate EMI, and get a personal loan online. Make sure you check all the available loan plans to choose the best repayment structure. You cannot miss out on loan repayment as it will hamper your credit score. It is why one should choose a repayment structure according to their capacity.Many lending platforms allow you to instantly get personal loans ranging from INR 8,000 to INR 10 lakh. You can easily apply for a personal loan this festive season from your couch. Make sure you choose a reputed digital platform to get personal loans without any hassle and collateral. Check your 5 lakhs personal loan eligibility online now!