You may be faced with expenses such as buying your dream car, a smartphone, going for a dream vacation, renovating your home, your child’s higher education or marriage and wonder how to finance the same. Expenses such as these are significant, and you may not always have enough savings to meet them. However, incurring these expenses is often inevitable. So, how do you meet these expenses?
There are quite a few options to raise funds for major expenses. You could opt for a cash advance on your credit card. However, if you are unable to repay promptly, it could prove to be rather expensive. Depending on the type of credit card used, interest rates on credit card cash withdrawal could be as high as 40%. Additionally, there is no interest-free period; interest is charged from the minute you withdraw cash. Also, an additional transaction fee is charged for cash withdrawal through credit card. With so many shortcomings, a credit card may not be the best option for funding these expenses.
A better source of funds is a personal loan to manage increasing expenses. It is an unsecured loan and does not require any mortgage or collateral. In the unlikely event that you are unable to repay the credit, there is no risk of the lender claiming your collateral. Further, depending on your requirements, you can obtain a customised loan for the required sum and tenure. You can also negotiate a favourable interest rate by ensuring that your credit score is decent and your current debts are within a manageable range. The repayment is also spread out conveniently over a longer period.
A major advantage of a personal loan is its easy accessibility. It is highly convenient to apply for one, particularly if you already hold an account or have previously taken a loan. You can easily apply online itself and get an instant eApproval, right from the comfort of your home. Whether you are salaried or self-employed, you can avail a credit. All you need to do is fill out an online application conveniently from the comfort of your home. Do keep the following personal loan documents handy while making the application:
Based on various parameters such as your income, your eligibility, etc. your application will be assessed. A self-employed business owner could be eligible for a personal loan of up to Rs 30 lakhs and a salaried individual of up to 20 lakhs. Depending on your application and eligibility, a principal credit amount will be granted. Depending on the loan tenure and interest rate negotiated, the total repayment amount will be arrived at. You will be given an equated monthly interest (EMI) which is nothing but the total repayment amount divided by the loan tenure. An EMI is a convenient method to repay your credit amount.