A prudent mode of finance to address a range of individual needs, Personal Loans have come a long way. Today, consumers are availing these loans to make big-ticket purchases and with alternate lenders including non-banking financial companies (NBFCs) offering them at competitive interest rates, the preference for these loans is on a rise.
With a paradigm shift in consumer taste, a Personal Loan is seen as a modern-day need among Indians to realize major life goals. Let’s look at the changing trends witnessed by this unsecured loan segment in India.
1. Availing Personal Loans from NBFCs
Previously banks were the primary institutions for availing Personal Loans in the country. The need for a large loan amount and quick disbursal of funds have made NBFCs the go-getters for Personal Loans of late. For example, Bajaj Finserv one of the leading NBFCs of India offers a Personal Loan up to Rs.25 lakh with disbursal of funds in just 24 hours.
A simple eligibility criterion along with hassle-free documentation makes Personal Loan one of the ideal financing options to satisfy your varied needs. You can also widen your choices of lenders and access loans at competitive interest rates with an online search.
2. Personal Loans to Address Various Life Goals
Today, consumers are not shying away from availing Personal Loans to address various short and long-term financial goals. Such as home improvement, travel, higher education, and weddings, among others. These loans are also widely being used to fund medical treatment. That’s not all.
Even business owners, who are still in the formative years of business or are looking to take up entrepreneurship, are using them to address various operational needs such as buying new machinery, improving cash flow, or setting up the required infrastructure. With Personal Loan interest rates being competitive, this loan goes a long way addressing various business needs.
3. Surge in Preference of Flexi Personal Loans
Of late, consumers are increasingly leaning towards Flexi Personal Loans. As the name suggests, these loans offer the flexibility to borrow funds as and when required from the approved loan limit. These new-age loans offered by NBFCs doesn’t require you to make multiple applications to withdraw and transfer funds from your loan account.
With interest being charged only on the amount utilized and not on the entire loan limit, it reduces the monthly EMIs by almost 45-50%. Also, you can pre-pay when you have a surplus of funds at no extra cost.
4. Usage of Personal Loans for Debt Consolidation
Instead of paying EMIs of individual loans such as home, car, etc., a Personal Loan can use to repay all these loans, leaving you to bear only its EMI.
Using a Personal Loan for debt consolidation has the following advantages:
- It protects a chunk of income from going into paying EMIs of various loans
- With all loans being paid on time, it enhances credit score and subsequent chances of availing a high loan amount at an attractive interest rate
5. Easy and Hassle-free Online Application Process
With digital as a concept making in-roads in the world of finance. A Personal Loan application is an easy and hassle-free affair today. You don’t need to visit the office of your chosen lender. Go through the process of filling up the forms and submitting the relevant documents. You can apply for a Personal Loan from the comfort of your home or office.
All you need to do is to fill a simple online application form. Upload the relevant documents and if everything is alright, your application can approve in under 5 minutes. The online application process helps you analyze various aspects such as eligibility for Personal Loan, interest rate, loan amount, etc. Most lenders have an EMI calculator which you can use to determine the EMI you need to pay.
To woo new-age customers, financial institutions are introducing a lot of innovative offerings. Before taking your pick, make sure do your own research and compare the offerings. Choose the one that best suits your needs.