What are the benefits of a personal loan

Published on: 11 January 2023

Modified on: 16 May 2023

With the advent of digital lending, there has been a paradigm shift in how India borrows. For example, the personal loan segment has grown about 100% between 2018 and 2021. This shows that customers today are more willing to take a personal loan and embrace credit. With lenders offering easy access and multiple personal loan benefits, people go for these instant loans to meet a diverse set of objectives. Read on to find out about the benefits of a personal loan.

Easy-To-Meet Eligibility Criteria

Qualifying for an instant personal loan is simple due to its easy qualification benchmarks. In fact, this is considered to be one of the personal loan benefits that allows you to get funding without any delays. Usually, the applicant only need to meet simple terms, which are to:

• Be a salaried individual with a minimum salary of ₹15,000 in non-metro cities and ₹18,000 in metro cities
• Be between the age of 21 to 55 years
• Be a resident of India

On meeting these basic requirements, applicants can easily qualify for a low-interest personal loan. Do note that some lenders have city-specific income requirements as well.

Minimal Paperwork

To avail of a personal loan, you need to submit soft copies of your basic documents only. Existing customers with a given lender may even enjoy a paperless process. But in instances where you do need to submit documents, you may need to provide:

• PAN card/Aadhaar card/Passport
• Employee ID card or any other valid proof of income
• Latest pay slips
• Bank account statement

Quick Processing

Usually, top lenders process loan applications within 24 hours. Some new-age lenders like Fibe can process and grant approval in just 15 minutes. Among the various benefits of personal loan, this ensures that the borrower get instant cash in situations like medical emergencies or any unignored home repair. What’s more, disbursal is quick and you get the cash directly in your account without any delays. Such personal loan advantages are only possible due to its collateral-free nature.

Flexible Repayment Terms

Lenders will often allow you to enjoy some amount of flexibility when it comes to the tenure. Selecting a flexible repayment tenure for your personal loan holds a major advantage and doesn’t make a dent on your pocket. For instance, Fibe allows you to choose a tenure ranging between 3 to 36 months. This allows you to pick EMIs that are both affordable and cost-effective.

No Restriction In The End Use

A restriction-free sanction is another one of the major advantages of a personal loan. Unlike other options, you can use it to fund any obligations without any issues.

Here are a few different types of objectives one can meet with a personal loan:

• Consolidate existing debts
• Fund a wedding
• Pay for educational expenses
• Cover the cost of any big or small trip
• Relocate to a new place
• Renovate a home
• Buy electronic gadgets
• Fund small business expenses
• Manage miscellaneous unforeseen expenses

With knowledge about all these benefits of a personal loan, making a confident lending decision is a lot easier. However, besides all these personal loan advantages, there are situations where one shouldn’t go for a personal loan. For example, if the credit score of an individual is on the lower side and they have made several credit enquiries in the last few months, it is wise to wait before applying for a new credit. Take some time to work on the credit score and then apply. It is also advisable to apply for a personal loan with a trusted lender only.

As multiple lenders are now coming out with diverse borrowing solutions, it is well worth to do your market research to find a suitable option. One smart option is the Fibe Personal Loan, wherein you can get up to ₹5 lacs in minutes. Loaded with features, you can enjoy 100% digital process with instant approval and disbursal within 15 minutes post approval.

With so many advantages, a Personal Loan offers the ideal financial assistance where there is minimal requirement for paperwork involved and simple eligibility criteria. Also, the lenders doesn’t charge anything for the pre-payment of a personal loan and provide flexible repayment facility. Get funds instantly with Fibe today, apply online and borrow smartly.