The year 2020 has been quite difficult and depressing for all of us. The entire human race is faced with a pandemic and even though, our doctors and medical teams are trying their best, there seems to be no solution soon. Covid 19 has affected all countries, all economies, and people alike.
As we are slowly trying to adjust to the new normal, the Coronavirus has forced us to stay at our homes for the safety of our health as well as the well-being of our loved ones. As we are slowly trying to adjust to this new normal, we must remain strong, united, and unfaced.
One way of fighting this pandemic is to ensure that we do not let it affect our spirits, hope, and celebrations. We must celebrate our festive season with splendor and glory. Even if it’s virtual, our festivities must not be dull. After all, we wait the whole year for this auspicious time.
Navratri in October, followed by Dusshera and Diwali in November – this is truly the best time of the year. These are the most awaited festivals of our country and if the tight economy is weighing you down. Don’t fret, easy and instant personal loans have got you covered for any cash crunch that you may face.
Why Must You Opt for Personal Loans?
- Personal loans are a great option to tide through these times without having to give up on your celebrations or grandeur. The key attribute of personal loans is that there is absolutely no restriction on the end-use of your funds.
- Unlike specific loans such as home loans, car loans, business loans, etc where the end use is controlled, personal loans give you the freedom to spending your funds as per your wish and desires.
- Even the declining economy did not affect the growing market of personal loans. There was almost a 30% year-on-year increase in the books of unsecured personal loans accordingly to recent economic reports of the central bank.
- The main reason is believed to be easy documentation, simple criteria for eligibility, and the healthy competition in the market which has ensured competitive interest rates and excellent customer services
- NBFC’s have also entered this market with full force and are giving tough competitions to other Financial institutions such as banks. The main strength that NBFC’s bring to the table is hassle-free documentation, simpler processes, and competent customer service as compared to banks.
- Trustworthy and reliable brands offer digital service and online availing of personal loans. They even commit to disbursing the funds within 24 hours of loan approval (providing your information and documents pass through all verification checks).
Things to Consider Before Opting for a Personal Loan
Although personal loans are in demand and seem to be your best option during this festive season, there are certain things that you must consider before applying for it.
1. Understanding your Need
- Navratras and Diwali online deals on clothes, accessories, jewelry, cars, home appliances, renovation, and interiors, etc are very enterprising and attractive.
- Chart out your needs, pick out your products, and decide on a ballpark figure that you require for your loan. It is very important to have an appropriate estimate. Experts advise you to even account for a tolerance of 10% on the higher side so that any last-minute requirements can also be met.
- NBFC’s such as Fullerton India offer up to 25 lakhs as an instant personal loan so you do not have to worry about the principal amount.
2. Computing your Tenor and Cash Flow
- Once you have decided on your amount, you must then proceed to figure out the tenor for your repayment. You must have a rough estimate about your regular monthly expenditure so that you can manage the extra amount of monthly installment.
- Remember that you must not falter on your monthly payout and hence you must accordingly pick a tenor. The longer the tenor the lower will be your EMI amount.
- There are many institutions long tenor options. Personal Loan providers offers a tenor starting from 1 year to 5 years on their personal loans.
3. Evaluate your Interest Rate
- The thriving market of personal loans has ensured that a borrower receives competitive interest rates. The festive season also offers amazing deals that you can grab.
- However, it is important to note that interest rates vary from person to person. It would depend on your creditworthiness, financial worth, loan amount and tenor opted.
- Having said that, rates starting from 11.99% are on offer by companies such as Fullerton India. You can also use the Fullerton India online personal loan EMI calculator to understand what will your monthly payout look like. Hence, ensure you do thorough market research to seize the finest deal.
4. Meeting Eligibility and Preparing Documentation
- The eligibility criteria for personal loans are fairly simple to comprehend. Basic criteria such as age above 21 years, citizenship of India, being gainfully employed, net income of just 25,000 INR per month (it is 20,000 INR for cities excluding Mumbai and Delhi), or a net profit based on the industry if you are self-employed – need to be met.
- Documentation becomes easy to arrange once the eligibility is understood. Residence proof, Identity and Age proof, income proof such as Salary Slips, bank statements, income tax returns, form 16 filed – need to be submitted or uploaded.
5. Other Important Factors
- Certain financial institutions may not be very transparent in their dealing. They would offer attractive Personal loans but add hidden costs on the same which would make it an expensive proposition.
- Dependable companies such as Fullerton India, display their charges on their website itself to avoid any unethical practices.
- Hidden costs include processing fees, foreclosure charges, delay payment charges, additional interests applicable for delayed payments, etc. This is only an indicative list and not an exhaustive one. Hence, it is advisable to check for any rider clauses or hidden overhead costs before selecting your lender.
Here’s hoping that you and your family enjoy this festive season without a worry in the world. You always have personal loans to take care of the rest.