There is no genie to fulfill these ever growing needs. Had it been so, the story would have been different. In order to fulfill our never ending wishes, we approach money lenders. However, borrowing money from lenders is tedious and expensive due to high rate of interest. Borrowing requires a lot of paper work and you also have to provide some kind of security. Not only this, once you are through with the formalities, you have to wait for days to get the loan.
All these hassles make personal loans the better option than borrowing money from lenders. There is no delay in the sanctioning of the loan or its disbursement. It does not even require a guarantor.
The following points prove that personal loans are the better bet:
1. Guarantor or security not required
The most appealing feature of personal loan is that it does not require any security or guarantor. You don’t have to mortgage any property or arrange for a guarantor. This way, the embarrassment of asking the friends or relatives is eliminated.
2. 100% confidentiality
Personal loans provide you with 100% confidentiality. Since no guarantor is required, no one comes to know that you have applied for a loan. This keeps your social status intact.
3. Freedom from questions
When you take a personal loan, questions like why the loan is taken, where the loan is used, etc, are not asked. It’s totally up to you where you want to put your personal loan as you have complete freedom to use the loan as you like. You are not answerable to anyone.
4. Repayment is easier
Repayment of personal loan is made in equal monthly installments. This waves off the burden of paying the lump sum at one go. The tenure of repayment is opted by you, which ranges from 12- 60 months. This provides greater flexibility and you can pay according to your suitability. You can also prepay the loan before the termination of the opted tenure.
5. Less documents required
The documents required for taking the personal loan are simple. Just a salary slip, bank statement and identity proof is required in most cases. There is no hassle of elaborative documentation.
No doubt, personal loans are the better bet. However, they are not cheap. They do not require any security and therefore the rate of interest is higher by 5% as compared to the secured loan. Personal loans are not for everyone. The criteria set by the banks have to be met in order to take a personal loan. Only if you are working in the managerial crade in a company that is featured in the banks approved list of companies and only if you live within the prescribed city limits, you are entitled for the loan. Other than this, you have to be of certain age to apply.
