Today, a personal loan has emerged as one of the preferred ways to raise funds to meet an emergency. This is mostly due to the benefits that come with this loan. A personal loan is convenient and promises easy access to the required funds. This is why there has been an increase both in the number and type of personal loan providers in India. Traditional lenders like banks do give out personal loans, but salaried professionals are increasingly turning to newer lenders like instant loan apps. That’s right – today, you can even get a personal loan using an app on your smartphone! Long wait times, extensive documentation, and queues are now a thing of a past. These unsecured loans can now be availed of from the comfort of your home also. As for the various types of personal loans, let’s give them a look. Read on:
Flexi Personal Loan
As you know, a personal loan is a very flexible source of emergency funds. This is in terms of the repayment tenure and the loan amount. Flexi personal loans are usually provided with smaller ticket sizes and repayment tenures. When you think about it, such personal loans are a great way for salaried professionals to meet a month-end cash-crunch, or take care of a small yet unexpected expense. The ‘Flexi’ in such loans refers to the flexibility of being able to borrow a small amount and pay it off faster.
Personal Loan for Salaried
This is another variant of a personal loan but tailored to meet the needs of salaried professionals. With a personal loan for salaried, the repayment tenure is longer and loan amount is usually larger. You may also need to submit more information where documentation is concerned. Repayment tenures for such a salaried personal loan usually extend to 18 months. The loan amount can be anywhere between ₹2 and ₹5 lakh. A borrower looking to avail such a loan must furnish his salary slips, and corresponding bank account statements as well. Salaried professionals usually make use of such a loan to take care of significant purchases.
Online Purchase Loan
In simple terms, an online shopping loan is known as an online loan or a shopping loan. This is like any other personal loan, but one that you use to shop online across your favourite e-commerce platforms. Let’s say that you want to take advantage of a sale on Amazon/Flipkart, or shop for your favourite apparel on Myntra/Jabong. You may even want to buy yourself a new phone or furniture. An online purchase loan will help you in all these situations. The cost of your purchase will be divided into EMIs, based on a repayment tenure you’re comfortable with. You pay the EMIs (as you would for any other personal loan) and enjoy your purchase!
Also known as a personal loan for medical emergency, this personal loan helps you get the best health care possible for you and your family whenever required. As is the case with most medical emergencies, they are unexpected and require a lot of money at very short notice. A medical loan acts as a much-needed cash infusion so that you don’t lose precious time waiting to arrange the funds. Known for fast approvals, the personal loan amount will be transferred into your bank account within just 24 hours (with most lenders). So, whether it’s routine surgery or a sudden accident, you can be prepared for both situations with a medical loan.
Who doesn’t love a good vacation? Whether it’s backpacking across Europe or just enjoying a quiet domestic vacation, a travel loan (or a holiday loan) helps you do just that and more. The EMIs usually range between 12 – 60 months, and you will receive the funds directly into your bank account. Of course, the disbursal time varies from 3 hours to 24 hours depending on your loan provider and/or the loan amount opted for. The important thing that needs to be kept in mind while availing such a loan is your travel budget. The loan amount you apply for should be sufficient for your entire trip. This includes more than just your airfare and hotel accommodation. Once you’ve taken stock of how much you already have, you can go ahead and apply for a loan to cover the remaining amount.
The above options are a few popular use-cases for a personal loan. Whatever your reason for taking out a personal loan, it helps to keep a few important things in mind. The repayment tenure should be flexible enough to not impact your monthly budget, and the principal amount should be something that you can afford. Also, it’s a good idea to acquaint yourself with the various charges that are associated with your personal loan.