personal loan
Economic uncertainty can spoil anyone’s financial planning at any time. In such times, personal loans are emerging as a reliable option for people, with the help of which they are able to take control of their life and financial situation again. Whether you want to restart your business, deal with a medical emergency or bear the burden of sudden heavy expenses, personal loans are proving to be a quick and guarantee-free solution.
Why is the importance of personal loan increasing?
Personal loans are helpful first of all because they do not require any kind of security and they get approved very quickly and come into the account. In such a situation, medical emergency, loss of income or sudden expenses can be managed immediately. Their repayment tenures are also quite flexible, ranging from 1 to 5 years, and the EMI can be adjusted as per the income. Many banks are offering these loans at 9.99%10.80% annual interest rate till the end of 2025, provided the credit score is good. Rishabh Goyal, co-founder and CEO of Credgenics, says that personal loans give people an opportunity to stand again. He says that with disciplined repayments and the right loan structure, they help in maintaining financial stability even in difficult times.
How to use personal loan wisely?
It is most important that the purpose of the loan is clear such as restarting the business, repaying the loan or emergency needs. After this, it is important to compare the interest rates and terms of the bank and NBFC so that the total cost can be avoided. Also keep in mind the processing fees, longevity and other charges. Paying EMIs on time not only helps in managing the debt but also improves the credit score.
Understand the increasing risks of personal loan
Although their demand is continuously increasing, there are some risks associated with it. Problems like high interest rates, long EMI periods, fees and missed payments can lead to problems like deteriorating credit score. Therefore, taking a loan without planning can increase problems. Personal loans are becoming not just a loan but an opportunity for a second start for many people. Wisdom, right advice and EMIs paid on time can play a big role in turning economic shocks into stability.