Personal Loan- Pros and Cons
Personal Loan is one of the best options if you’re going through some financial crisis. Instead of getting in touch with many people, just contact any suitable bank from where you can avail a personal loan. A personal loan is the unsecured type of loan means you no need to keep any collateral or security. You can avail this loan at a higher interest rate but if you’ve good credit scores then you might get reasonable interest rate. According to many people, personal loan’s approval and disbursal take time but that true. If your submitted documents are accurate then your loan will be disbursed within a day. If you apply online then a chance of disbursal is quick.
Before applying for a personal loan, once check out the pros and cons:
Personal Loan Pros
- You might be able to borrow more than with a credit card.
- Your loan repayments will generally a fixed sum (monthly).
- The interest that you pay on your borrower loan is generally fixed (But now always. Before availing a Personal Loan, once check this)
- It upon you that how long you’d like to return the loan sum. Keep it in mind; the long tenure will affect the interest rate.
- Into one personal loan, being a borrower you can consolidate multiple debts. But don’t forget it might expand the loan’s length.
Personal Loan Cons
- If you’re applying for a personal loan then this loan will come to you with the high-interest rate.
- Because the rate of interest may decrease the more you get, you may be enticed to take out a greater loan than you require
- Most banks will not lend less than Rs. 80,000 or for shorter one year. So you might end p getting beyond your requirement.