Personal loan can be saviour in times of financial needs; here's how

Personal loans work like any other loan, but it offers more flexibility and is easily available. It is made available considering the credit history of the customer. It is an unsecured loan, not backed by collateral such as home or car. Taking a personal loan involves a lot of paperwork and can be availed only after it gets sanctioned. 

There are two types of personal loans, namely secured and unsecured ones.

Generally, personal loans are sanctioned to salaried, non-salaried and self-employed individuals. The documentation and rate of interest is different for personal loans granted to self-employed individuals.

Personal loan can also act as your saviour if you have fallen in debt. 

Aditya Kumar, Founder & CEO Qbera.com said, “Whether you’ve fallen into the dungeons of debt because of uncalculated and reckless credit card swiping or taking out multiple loans to tide over a financial or medical emergency, there is this one sort of superhero that can end your misery of massive repayments and surging debt, YES! We’re talking about the personal loan. And shall we not mince words when we say that the “personal loan” has become a force to reckon with over time!"

If you’re still wondering how a personal loan can be your real superhero in times of financial discord even if the odds are stacked against you, let’s find out as per Qbera.com. 

A Personal loan during a financial emergency

If you’re dealing with an intense financial emergency or your financial situation has suddenly turned too fluid, a personal loan can be your ultimate rescuer.

Moreover, if you have multiple loan accounts that are hurting your financial security, a debt consolidation loan (also a form of personal loan) can turn your fortunes around. A debt consolidation loan is a loan that you can take out to eliminate multiple sources of debt and direct all your debt to a single source.

Super-quick approval

Personal loans, mostly those offered by Fintechs, come with speedy approvals. An apt comparison would be the time Flash would take to shuttle between the Earth and Mars – and that should take just about an instant if we’re not to be betrayed by accurate calculations. You will receive instant approval based on your credit profile. Your loan application can be processed on the same day, and you can receive loan amount on the very same day. Exciting, isn’t it?

No collateral required

If you’re wondering what form of collateral you’ll have to submit to secure your superhero personal loan, you should also know that conventionally, superheroes haven’t required external support to do what needs to be done. On the very same lines, personal loans don’t need any form of security, much unlike car loans and home loans.

Choice of tenure

Personal loans come with tenures ranging from 12 months to 60 months. Some lenders offer tenures starting from 6 months as well. More importantly, if you’ve chosen a longer loan tenure to reduce your repayments (which ideally means you’re paying more towards interest), you can choose to pre-close your loan at a certain fee.

Digital application process

Current day personal loans, especially those offered by Fintech companies, require absolutely no paperwork (barring some cases - mostly those where an applicant doesn’t have a credit history). So technically, you don’t have to submit physical documents, much unlike older times where physical documentation was more than essential to process loan applications.

Freedom of Choice

With a personal loan, you can go ahead and do what you need to do. If you decide to use the loan amount to go on a holiday, you can effortlessly jump the ship and use it to pay for an education course instead!

The superheroes that we’ve been admiring all these years haven’t fallen short in keeping the fantasy in our lives alive. Personal loans are similar too – as long as they exist, they can be the ultimate financial saviour during troubled times, giving you breathing space that can be more than testing to find at times.