Dhiren, a 50-year-old Mumbai resident, knew he had to save sufficient money to fund his daughter’s wedding. This is why he had bought (and collected) gold over the years, which he could exchange for liquid funds at the bank. But when Dhiren met with his friend Anwar and told him about his plans, Anwar suggested he should get a personal loan online instead.
Anwar told Dhiren that one of his friends had acquired a personal loan too and that he secured funds without giving up gold or any other asset as collateral. Dhiren then decided to ask his other friends and relatives if getting a personal loan was indeed a good choice. The answer was a unanimous yes! Over 12 of his 20 friends had already gotten personal loans for various reasons over the past two years.
However, now the question was- What makes personal loans such a lucrative option? Were there any added benefits to a personal loan? Dhiren turned to Anwar again for help. Here’s what he told him.
Five Reasons for the Rise in Demand for Personal Loans
1. No Collateral Required
Anwar told Dhiren that one of the biggest reasons people preferred personal loans was because they didn’t need to give up collateral in any form to the lender. This meant there was no risk of losing assets while getting a personal loan.
2. Open-Ended Use
Like a lot of borrowers, Dhiren was worried if he could indeed get a personal loan for any reason. After all, 12 of his friends had gotten one for various reasons. One of the reasons people prefer taking personal loans is they can use it for any kind of emergency requirements. Lenders do not ask for an explanation before granting the loan. So, anyone fulfilling the eligibility criteria could get a loan.
3. Low Personal Loan Interest Rates
Another reason to opt for personal loans is the low interest rates. Most personal loan lenders these days offer affordable personal loan interest rates. This meant that loan repayments were more manageable than ever, and borrowers didn’t have to shell out a huge amount of extra funds to pay off the loan.
4. Flexible Repayment Plans
Worried about the repayment options? Personal loans come with flexible repayment plans. So, borrowers could choose their loan tenure depending on the EMI amount they could repay comfortably. Given the hassle-free nature of loan repayments, he said that many people have been getting personal loans recently.
5. Easy Application Process
Getting a personal loan online was a quick and seamless process now, unlike in the olden days. The entire application process is now 100% online and paperless. In fact, most personal loans came with an instant approval guarantee too! And since approvals were quicker now, loan disbursals were too!
After the discussion, Dhiren got all the information he needed to apply for a personal loan and is benefits. With his daughter’s wedding around the corner, all he needed was a quick and convenient source of liquid funds. And with a personal loan, he could get them without giving up collateral!