Game-changing Aspects of Personal Loans

Last Updated : May 2, 2022, 11:02 a.m.

Often in sports, we see some players changing the course of the game suddenly and leaving their teams in awe of their brilliance. The same thing can happen with a personal loan which we all take for many purposes – marriage, education, travel or even medical emergencies. You may face times when a personal loan could ease things drastically for you. When most lenders deny you a loan, the bank with whom you have any banking relationship will step in for you. Similarly, personal loans bail you out from several other situations. Although there are numerous utilities of personal loans, we will focus on their game-changing aspects here.

So, What are Those Game-changing Traits of Personal Loans?

These include its offering on a pre-approved basis, ability to convert tall credit card outstandings into smaller EMIs, etc. Let’s discuss it all.

Pre-approved Personal Loan Comes to Rescue in Times of Need

You may require a lump sum amount to meet an unplanned healthcare expense or for a wedding fixed all of a sudden. To meet this need, you may visit the top banks only to see your application getting denied by them. Don’t discount the ones with whom you already have a banking relationship for such a need given their limited operational size. They may just help you with a pre-approved personal loan for which you don’t even have to submit documents. Quite an offer that as documentation most of the time breaks the case of borrowers.

All you need to do is accept their offer and the money comes straight into your account. So, if you have any current or savings account or any debt relationship with a bank, you always hold the case for pre-approved personal loans. The solution to the problem sometimes is near us! It’s up to us to identify THAT!

Personal Loan Helps Convert Tall Credit Card Bills into Smaller Amounts

Credit cards when used irresponsibly can become a non-stop headache for us with massive interest rates of 30-40% per annum on revolving credit. Shoppers often fall for the lure of minimum due payment to avoid late payment charges. But continuing with this bad payment routine only spirals the debt out of control. So, there comes personal loans that help convert such tall credit card bills into smaller monthly installments. In exchange for 30-40% credit card interest, you will need to pay about 10-20% interest on a personal loan. Just place the request before the lender and get it done.

Personal Loans Can Play a Good Supporting Role to Home Loans

Home loans are not financed fully. Around 75-90% of the property value you get as a home loan. Arranging the rest 10-25% is your responsibility. For instance, if you’re searching for a two-BHK home in metro cities, the cost can be around INR 30-60 lakh.

So, if the property for which you want a home loan costs INR 50 lakh, the bank will sanction around INR 40 lakh as a home loan. You’ll need to arrange INR 10 lakh from your end. Some may not be able to accumulate INR 10 lakh and, therefore, would require a personal loan to cover the deficit. So, not only a home loan but even a personal loan could help you get your dream home.