Demand for personal loans in India has increased over the past few years and will likely continue growing. Personal loans are one of the few financial resources that provide quick funds for various purposes. Whether you need it to pay medical bills, travel purposes, or cover your education, a personal loan has your back.
But why exactly has the loan demand increased in India? Well, instant personal loans come with many benefits making them highly sought after by countless borrowers in the country. Here’s why personal loan demand is increasing in India:
Faster Application and Approval
Years back, obtaining personal loan in Delhi was a tedious, long-winded process with no surety of approval. Applicants would often submit an overwhelming amount of documents and wait for days or weeks for their applications to be accepted. Not to mention the uncertainty that funds may never arrive.
With online lenders now available, applying for a personal loan and getting it approved in minutes or hours is possible. You just have to go to their website and apply. After applying, you have to wait for a few moments for the funds to be disbursed. It’s that simple.
No need to go to the lender, everything is completely online. And because of its lightning-fast disbursal system, taking care of urgent financial needs becomes an absolute breeze.
No Usage Restrictions
Personal loans are the ultimate way to finance anything you need since you are not restricted to using the loan on a particular project. Unlike home loans for purchasing a home and car loans to buy a vehicle, a personal loan has endless possibilities of how it can be spent. Whether you’re planning to go on a vacation or want to remodel your house, you are free to do so. With a personal loan, you have the financial freedom to accomplish whatever you have in mind, be it an emergency or going on a vacation.
Personal Loans Have a Flexible Tenure
The demand for personal loans in India is increasing due to its flexibility in terms of payment. Personal loans have a flexible repayment period ranging from 3 to 15 months. Besides, features like adjustable payment terms and low EMIs make repayment easier. But remember, the longer the tenure of your loan, the higher the interest rates associated.
In addition, getting an instant personal loan and repaying it on time will help boost your credit score. It’s essential to remember that a longer tenure will result in small EMIs but with higher interest.
Convenience
The convenience of personal loans is a major factor in its increasing demand in India. With the ability to acquire online loan approval in a matter of minutes and loans readily accessible from non-traditional lenders online, people can receive the funds they need without waiting weeks or months.
This is especially beneficial during financial emergencies when time is of the essence, and traditional banks may take too long to process loan requests. Additionally, personal loan lenders often have more lenient eligibility criteria and the flexibility to choose a repayment plan that best suits your budget or financial situation.
The Loan Can Consolidate Other Debts
It is very easy to find ourselves in debt. From large purchases to unforeseen expenses, debts can pile up really fast. Fortunately, an instant cash loan can help you get out of debt easily since you can consolidate all your existing debts and remain with only one loan. The interest rate on personal loans is lower than many other loan options, and you can even consolidate your high-interest loans into this more affordable financial solution.
A personal loan lets you pay off various loans and credit card debts at once instead of monitoring multiple payments. This makes repaying easier as you only have to keep track of your single EMI payment – thus making it extremely advantageous.
Personal Loans Don’t Require Collateral
Personal loans are quickly becoming the go-to option for individuals looking to borrow money without collateral. Unlike secured loans, you don’t need any security or guarantors to be approved for a loan. Your capability to return it within the agreed timeframe is all that matters.
Easy Eligibility
It is very easy to become eligible for a personal loan. Below are some of the criteria:
- Borrowers must be at least 21 years.
- Should be an Indian citizen.
- The borrower should be working at a public or private limited company.
- You should be earning an income salary of INR 20,000 per month.
The easier eligibility criteria make it more convenient for people to get approved for a personal loan in India.
Conclusion
The increasing demand for personal loans in India is due to the convenience, flexibility, and ease of accessing them. With flexible repayment terms, low EMIs, and no collateral needed, they are becoming very popular among Indians. Additionally, it’s possible to consolidate debt with a personal loan which makes payments easier to manage. With all these benefits personal loans offer, it’s no surprise they are becoming more popular.
