Whenever an individual faces a financial shortfall, their first choice is always Personal Loan. The reason for this biased popularity is the flexibility of use. On one hand, most of the debt schemes offered by the financial lenders have a defined purpose, and the same can be used only to answer the mainstream financial queries. But, the Personal Loan can be used to resolve the secondary, personal monetary problems. Furthermore, there are few more advantages of Personal Loan that makes it a frequently asked alternative.
No collateral required for approval: Let's face the truth, a financial shortfall is an everyday thing these days. Even more, not everyone in desperate need has sufficient assets to use as collateral in a secured loan application. Owing to that, a Personal Loan can be obtained without any obligation to attach any security for approval.
Flexi repayment plan: Not all but some lenders are offering a Personal Loan with flexi repayment plan which makes the repayment process convenient. The plan allows the borrower to repay the interest component as EMI and settle the principal debt through multiple part-prepayments.
Usage flexibility: The most attractive aspect of Personal Loan is the flexibility of use that allows the borrower to use it for any reason at all, except the ones prohibited by the agreement.
Tax benefits: As per the Indian Income-Tax Laws, a borrower using a Personal Loan for home renovation and repair, financing higher education, and to pay the medical bills is eligible for tax exemption under section under different sections.
Bottom line: If you want to take a Personal Loan, make sure you choose a suitable lender offering a fitting Personal Loan scheme.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.