5 Reasons to Clear a Debt with a Personal Loan

5 Reasons to Clear a Debt with a Personal Loan

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Personal loans are built for diverse financial needs. One of the best usages is to clear your existing debts with the funds. The leading banks of India offer unsecured loans. You do not have to provide your asset as a security or guarantor. This way you do not further add to the debt burden. It is also a convenient option when you wish to borrow smaller funds. The loan disbursal process is much quicker since there are no assets to evaluate. The lender simply disburses the personal loan based on your creditworthiness and word of the mouth. Applying for a loan for debt consolidation could be helpful. It can be used to pay off credit bills, mortgages, car loans or any kind of outstanding balance. Take a look at why it could be a good idea to use a personal loan.

1. Pocket-Friendly EMIs

There are no restrictions on how you use the loan. You can use an instant personal loan EMI calculator to pick a monthly payment amount.

  • Choose any amount between 20K to 40L.
  • Choose a period between 12 months and 60 months.
  • The interest rate can be anything between 10.49% to 22%.

You can now see the payable EMI. Assess your financial capability and pick a tenure and amount that suits you well. This way you do not have to compromise on your lifestyle.

2. Personal Loan App

A loan app makes it extremely easy to apply. You can check your loan status, download statements, track the application, raise a service request, pay your EMI online.A loan app with a simple interface and easy accessibility help you focus on your debt management better rather than physically visiting the bank.

3. Helps Boost your Credit Score

The leading Indian banks make sure EMIs are extremely affordable. They can be cleared easily without taking another loan or defaulting. Clearing your debts at once within the deadline and paying off the personal loan instalments can have a positive impact on your credit profile. You also become eligible for another personal loan, if need be, in future.

4. Clear High Debts

 A personal loan can payoff high-interest debt in a single instalment. You can clear all the monetary obligations with the fund and stir clear of penalties at once. The loan amount can be paid in affordable EMIs at a later date. You do not have to worry upfront financial stress. Try to borrow the funds from a bank that offers affordable interest rates and flexible tenure to make the whole process a breeze.

5. No Personal Obligations

You do not have to be indebted to your friends and family for borrowing money. It might also not be a sensible idea amid an ongoing pandemic. Not being able to pay it back the loan could also strain your relationships. A personal loan could be a big help in distressing times. You can easily borrow from the bank and pay back later according to your convenience. Ask whether the bank offers a grace period which further makes it easy to afford the fund.

A personal loan is a simple, quick and convenient product. Consider borrowing from a bank that offers a top-up facility, flexibility of part payment and competitive rates starting at 10.49% to clear your debts hassle-free.

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