A crisis situation like death of the earning head of a family, accident or serious illness can put you in a serious financial mess. You may need some emergency funds to take care of your family members until your family get out this mess. One thing you can do at this time is apply for personal loan. A personal loan is safe enough to get you and your family back on track.
A benefit of personal loan is the ease in which loan is provided. An average personal loan doesn’t take more than 1 or 2 days to clear. With paper work sorted and good credit score, it can be sanctioned in few hours. So you don’t have to break the bank or dig into your child’s college funds to come up with the money.
If you need money in a hurry without having to go through tedious documentation processing then personal loans are your best ally. You can get them easily in a period as short as 24 hours. All that is needed is to fill out and application form with the lender and the cheque would be delivered to your doorstep within few days.
Here are some benefits of using a personal loan:
* Variable and negotiable interest rates.
* You can put up collateral or simply make use of your good credit history to get you a better deal.
* No early payment penalties.
* Minimum paper work.
* Borrow more than you can with a credit card.
* Your repayment amount is going to be same every month and it is easier to budget.
* Fixed Interest rate
* You can choose how long you would like to take to repay the loan. The length of the loan will affect the amount you are charged in interest.
* You can consolidate several debts into one personal loan, potentially reducing your monthly repayment costs. But be careful as this may extend the length of the loan and so paying more overall.
With a personal loan you can choose the loan amount and the tenure period. This can be paid within 2-3 years with a fixed rate depending upon the borrower requirement or earlier.
If you have a pressing need for cash, and don’t have any asset, but a credit card, a personal loan is certainly advisable. Cash withdrawal using your credit card is far more expensive than a personal loan. But if you have assets like property, gold or shares, it is advisable to take loan against the, since these loans have lower interest rates.
Ensure you are able to honour your commitments, since failure to repay the loan will not only affect your credit rating but also land you in legal trouble. While this loan may be useful in certain instances like medical emergencies, it doesn’t make sense if you are using it to fund your vacations.
Before you rush out to get a personal loan, it is important for you to understand the merits and demerits of personal loan, in order to make an informed decision.