What Makes Personal Loans a Favorite Financing Alternative for Millennials?

With growing inflation, additional taxes, and changing lifestyles of people, there is a constant need of finance to keep up with the financial ups and downs.

Whether you need to buy a latest gadget or electronic item available in the market, bear the expense of your or your loved one’s marriage, go on a vacation with your buddies, throw a party on your birthday, or want to gift gold to your mother on Diwali, you need to be financially prepared for the said expenses. However, it is not necessary that you have funds readily available whenever you need them. At such times, Personal Loan is the best source of finance available for you.

There are multiple options of funding available for you including Credit Cards, loan from family members or friends, loan against property, selling valuable assets, and your savings in the form of fixed deposit, mutual funds, insurance, or gold. However, Personal Loans are different from all these alternatives due to several reasons.

Here are some unique benefits of personal financing that makes it a favorite financing option for Millennials:

1.  Easy Availability:  Personal loans are much easier to avail compared to other forms of financing. These loans come with affordable interest rates by most of the banks and other financial institutions (depending on your credit history and repayment record). 

2.  No Collateral Required:  Being an unsecured form of financing, you don’t need to give any collateral or mortgage any assets as security to get personal loan. Lenders will just check your ability and willingness to repay the money, and once they are sure of your ability to repay, they will immediately process the loan.

3.  Availability of a Plenty of Lending Marketplaces:  You can choose to apply in a traditional way by approaching a bank or any other financial institution or can apply through an online lending platform to speed up the process. Nowadays there are several online lending marketplaces like com that have Personal Loan specialists on board who can get you the funds much faster. 

4.  Multi Purpose Loan:  You don’t have to state the purpose for the end use of the Personal Loan funds. You can spend your Personal Loan amount for any purpose. It’s the borrower who decides what to do with the money, and not the lender (as happens in other forms of the loan). 

5.  Quick Funding:  The processing time for a Personal Loan is very less compared to other types of loans. If all the documents are in place, and loan request gets approved, the funds will be transferred into your account within a few hours.

6.  Lesser Paperwork:  As Personal Loans don’t require verification of property or any other asset, they involve minimal paperwork. Just a PAN card, address proof, bank statements, and salary slips of last 3 months are enough. All this can also flow online and the decision process can be instant to a large extent.

7.  Variation in Interest Rates:  The interest rates for Personal Loans vary from lender to lender. There can be variation in their interest rates on the basis of – your credit record, income, and special schemes or offers extended by the lenders. Usually, the interest rates for these loans may range from 10.99% to 24%. It is advised to do a research before zeroing in on a particular offer. You can apply with mymoneymantra for lowest interest Personal Loans. Due to its association with over 60+ reputed banks and financial institutions, we assure you the best rates available in the market.

8.  Loan Terms and Conditions:  Loan amount, tenor and other terms depend on the past credit record, repayment capability, and other eligibility criteria of the borrower. The amount offered under Personal Loans range from 50,000 to up to 1 Crore varying from lender to lender. You can repay the borrowed amount with the specified interest rate through EMIs. Loan tenor depends on the amount borrowed and may vary from minimum 12 months to maximum 60 months.