What are the advantages of a personal loan?
Accepted Answer ✓ Accepted
Key advantages include: (1) No collateral required - unsecured loan; (2) Quick approval and disbursal - 24-72 hours for digital loans; (3) Flexible usage - no end-use restrictions; (4) Fixed EMI payments for better budgeting; (5) Flexible tenure options - 12 to 84 months; (6) Helps build credit history when repaid on time; (7) Minimal documentation for salaried individuals; (8) Available for various income levels starting ₹15,000/month; (9) Online application convenience; (10) Competitive interest rates compared to credit cards (personal loan: 10-24% vs credit card: 36-42%); (11) Tax benefits in specific cases like home renovation or business use.
Suggested Answers
Personal loans are quick to get, don't require any property as security, can be used for any purpose, have fixed monthly payments, and are easier to manage than credit card debt. They're good for emergencies and planned expenses when you don't want to drain your savings.
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