Rise in awareness and availability has increased the spending power of the consumers tremendously. People are willing to spend more than what they save to meet their requirements. Earlier the average Indian psyche towards money was conservative- which meant dealing with cash more than credit apprehension towards loans and planning ahead of time for probable expenditure. However today the situation has drastically changed, especially in behavior patterns of the middle class. The average Indian wants to own a house, drive a car and is more than willing to make bold choices regarding his/her finances.
Personal Loan has come to the rescue in fulfilling many aspirations of individuals like house renovation, weddings, vacations etc. Personal Loan also comes with a lot of flexibility and customization. Personal Loan is a multi utility and all purpose Loan. Many customers prefer incurring Personal Loans due to urgent requirements since the finances are readily available. It helps you cover your Emergency needs & also fulfill spends for Leisure & Family commitments.
While advantages of a personal loan are plenty- it is not a perfect product, it has some disadvantages as well.
Especially for banks, it is a huge challenge to recover personal loan debts. After the global recession, banks have curtailed features and cut down credits to safeguard the escalating effects of unsecured credit.
Since Personal Loans are not against collaterals like property etc. the rate of interest is considerably higher. Hence, if you have a pressing need for cash and don’t have gold, property etc. as a security then Personal Loan is a good option for you. Another important eligibility factor regarding Personal Loans is your track record. Since Personal Loans are considered as high risk for lenders, an individual’s track record is thoroughly checked with regards to your pervious payments.
The answer is not definite. It totally depends on your circumstances and need. The pros and cons of a Personal Loan should be thoroughly studied and then a decision should be taken. Another important aspect is to examine your income and weigh your other liabilities carefully. Also, plan the repayment of the loan carefully. Defaulters of Personal Loan results in a low credit rating and also lands you in a legal battle with the lender. Hence, choose wisely before applying for a Personal Loan.
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All You Need To Know About Repayment of Personal Loans
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