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Why are personal loans gaining popularity in India

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14 Sep 2022, 17:24 GMT+10

It is common to face a situation where you find yourself in need of financial assistance. Everyone must start somewhere, and it is understandable not to be able to save much at the beginning of your career. However, if you face a situation where a few expenses are coming up, applying for a personal loan is always an option. This could involve paying off a few outstanding debts, going on a trip with friends, or even clearing bills.

Over the last few years, the personal loan category has effectively gained traction in the financial sector. Why is this? Borrowers who need funds can apply for an online personal loan immediately without wasting time. During an emergency, arranging funds by applying for a loan proves to be an effective way of getting financial assistance.

To understand more in detail, let us look at why more borrowers are applying for personal loans.

1. Borrowers can apply for personal loans from anywhere, at anytime

Earlier, borrowers had to visit one of the bank branches and stand in queues to submit their applications for a personal loan. However, this is something that they do not have to be worried about anymore. Today, a borrower can browse for the lowest personal loan rates, find suitable repayment tenures, and apply for a loan online anytime they want!

2. Lenders require minimal documentation and offer a contactless process

Most borrowers were wary of the documentation process for getting personal loan plans as this process used to take up a lot of time. However, most reputed lenders today require minimal documentation from their personal loan applicants. Applicants must upload their documents online, making the entire process of applying for the loan contactless!

3. Some lenders also let borrowers make part payments towards the loan

Part payments refer to a lump sum payment towards the repayment of the loan's principal amount. This helps bring down the outstanding principal loan amount and the total interest payment too! IDFC FIRST Bank offers its borrowers the flexibility of making up to 40%-part payments towards their personal loans.

4. Lenders also provide access to personal loan EMI calculators for free

A personal loan EMI calculator helps in understanding the EMI payments of a personal loan. You can use this calculator to change the values in the loan amount, interest rate, and repayment tenure to arrive at a suitable EMI value. Most financial institutions provide this personal loan calculator on their websites for anyone to use for free!

Looking for the best bank for online personal loan plans has made the banking process efficient for borrowers. Applicants do not have to worry about facing any hassles in getting loans anymore. If you are ever in a cash crunch, visit a lender's official website and apply for a personal loan.

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