A personal loan is a short to medium term unsecured loan (no collateral) that you can use to meet current financial needs. Though most commonly used to meet expenses related to debt restructuring, vacations, unexpected medical expenses and down payments, a personal loan may be used for practically any type of expense. If one looks at the benefits of personal loans, one can start with the fact that the tenure of a personal loan is shorter as compared to a mortgage. Unlike mortgage, which is for ten, twenty, perhaps thirty years, a personal loan is commonly for between one and five years.

Why Choose a Personal Loan?

There's no limit to the number of ways a personal loan can be put to use. It can be taken for any personal reason, such as:

●        A monetary aid for the renovation of your house

●        To meet wedding expenses one of the important and expensive days

●        To buy a new iPhone

●        To plan and spend holidays with the family

●        To simply pay off credit card bills or other debts

●        To meet business requirements such as advertisements or new table tennis table for the team

Personal loans act as the best-suited option to smoothen up cash flow at times of stringency. The key reason for some to prefer a personal loan is because of minimal documentation, fast processing times and the flexibility for use of the loan. Witnessing the huge potential of this market, leading banks and NBFCs in India are offering personal loans to both salaried and self-employed individuals.