Are Personal Loans BadBorrowing a personal loan can be a good idea to accomplish life goals and cope with emergencies that involve large expenses. Acquiring personal loans under pressure when you know repayment will be difficult can result in a bad loan experience. Hence, apply for personal loans only when you are sure about repaying it on time. Otherwise, it can directly affect your credit score.
Whether a personal loan is good or bad depends on the cash usage for the right purpose. To resolve your confusion, let’s figure out some of the good reasons to get a personal loan:
- Medical Emergencies: These days, with Covid-19 crisis on the rise, conventional medical treatment has also become expensive for a common man. In such tight situations, a personal loan is a great relief due to its instant online disbursement of funds directly into your account at a very affordable interest rate.
- Consolidating Debt: High debts can hamper the credit score. So, it is advisable to clear off other loans or credit card bills as affordable monthly EMI’s, instead of piling up and increasing the interest rate.
- Home Renovation: It is good to refurbish the space you live in. Restructuring your home with the best furniture and aesthetics requires lakhs, which is difficult to collate due to other standard expenses. Home renovation loan facilitates repairing and renewal of light fittings, bathroom accessories, wall paints etc.
- Business Start-up: A debt taken for a start-up or a small business is a well-planned personal loan which can be repaid slowly and steadily as the business expands.
Why Opting for Personal Loan is Not Bad?
- A personal loan is a popular loan type as everyone can avail this financial credit service in times of need. No more long ques and visiting the banks repeatedly for loan approval. A loan application can be submitted from any location, all thanks to the secured loan app making loan disbursal quick and easy. Advantages of personal loan are several such as mentioned below:
- A collateral-free loan with no asset or personal guarantee required
- Interest rates are quite decent and fixed.
- Personal loan approval process right from registration to disbursal is very quick and hassle-free
- No hidden costs, except a minimal processing fee
- High acceptance makes personal loan service more trustworthy.
Factors to Prevent Bad Personal Loan
A personal loan can turn bad if used carelessly for unnecessary wishes and desires. Many individuals randomly apply for personal loans without taking the repayment procedure seriously. Credit management if should be done right to prevent the personal loan from becoming a debt. Avoid payment delays and improve your credit score by:
- Select a fixed rate of interest that remains the same throughout the loan tenure
- Use the EMI calculator to check your budget to repay the loan
- Ignore fake loan calls and tricky loan offers that require you to send money first
SimplyCash, a secured personal loan app in India is easy to use and recommended for quick disbursal. Individuals seeking urgent funds can register and apply for a quick personal loan up to 1.5 lakhs at Simply Cash, without any physical documents and collateral. Automated EMIs deducted every month keep track of payments made and saves from being listed in defaulters.
Salaried and self-employed individuals with a minimum monthly income of Rs.15000 can apply for a personal loan. Download the SimplyCash app only via Google Play store.