With an uncertain future, financial emergencies can arise at any time. Although savings can meet the requirement of a lower amount, your savings might be insufficient for considerable amounts like Rs 1 lakh and above. So it is when people look for other financing options. Personal loans are known to be one of the most popular methods of financing among people. These loans are multipurpose loans that can be used for any financial need. Taking Rs. 1 lakh personal loan from a reputed financial institution is a seamless way to meet your short-term funding needs. You can apply for an instant loan online with minimal documentation and can access the required funds instantly. In this article, enlisted are some significant benefits of availing of a personal loan of Rs. 1 lakh.
1) Instant loan approval:
Since the banking industry has been digitized, almost every financial institution provides the flexibility of online applying for a personal loan of Rs. 1 lakh. With the online personal loan application process, a borrower can get their loan application approved within less time. Once the bank confirms that you meet their eligibility criteria and also have conducted necessary background or credit report checks, you can get your loan approved within minutes. Applying for an instant personal loan online by submitting the required documents usually takes 24 hours for the application to get approved. Rs. 1 lakh is credited to your bank account within 30 minutes of approval.
2) Affordable interest rates:
The interest rate charged for Rs 1 lakh personal loan will vary from bank to bank. Borrower’s age, credit score, annual income, existing loan repayment obligations, the total amount for which personal loans have been applied, etc., are some factors that financial institutions consider before determining the interest rate. Now that you are applying for just Rs. 1 lakh personal loan, the interest charged will be comparatively lower. Usually, different banks’ personal loan interest rates range from 10% to 25%. With affordable interest rates on a personal loan, you need not worry about excessive charges eating up your savings.
3) Seamless eligibility criteria:
A personal loan borrower must meet all the eligibility criteria set by any bank. The personal loan eligibility criterion is easier compared to other categories of loans. Here mentioned are some points that you need to comply with to get a personal loan of Rs 1 lakh:
- The age of an applicant must range from 21 to 60 years
- An applicant must earn at least Rs 20,000 to Rs 25,000 per month
- The applicant should have at least one year of working experience
- if an applicant is a salaried person, then he should be working for at least six months in the current company
- The minimum credit score of an applicant should be 750
- The maximum EMI as a percent of the applicant’s income should be 65%
4) Easy EMI calculation:
With the application of instant cash loans online, applicants now avail of many other benefits. For instance, they can easily calculate the EMI on Rs. 1 lakh personal loan in a few steps without professional help. All they need to do is visit the official website of any reputed bank and access the online EMI calculator. Once all necessary details, like the loan amount (Rs 1 lakh), interest rate, repayment tenure, processing fee, and more, are entered in the EMI calculator, you will be able to check your EMI obligations within a few seconds.
5) Minimal documentation:
The online personal loan application procedure has reduced the hassle and stress of the documentation process to a great extent. When opting for a personal loan online apply, you need to submit the below-listed documents:
- KYC documents: Aadhar Card, Passport, PAN card, or any other valid ID proof and address proof.
- If you are a salaried person, you must submit the last three months’ salary slip. And income proof is required for a self-employed individual.
- Account statements for the past six months
An applicant can submit and get all these documents verified online, further speeding the personal loan approval process. However, it is to be noted that depending on the applicant’s profile; the bank might request a few additional documents.
6) Collateral-free loans:
Personal loans are unsecured loans, which means that the applicant does not need to pledge any of their assets to the bank to apply for a personal loan. So now you can reap the benefits of the Rs. 1 lakh personal loan without worrying about losing your asset.
7) No hidden cost:
Now that almost every bank has adopted a transparent working approach and customers are becoming more aware of banking policies, the chances of financial institutions charging hidden costs have been eliminated. All details regarding bank charges, such as processing fees, EMI charges, personal loan interest rates, late payment charges, etc., can be known after going through the loan form’s terms and conditions section. Moreover, banks don’t charge any hidden costs or fees on Rs 1 lakh personal loans other than processing fees. The processing fee is non-refundable and ranges between 0-6% of the total loan amount.
8) Flexible repayment term:
Rs. 1 lakh instant personal loan tenure of almost every bank or NBFC ranges from 1 year to 5 months. Almost all banks allow the applicant to choose the repayment tenure. You can choose your preferred personal loan tenure depending on your repayment capability without burdening yourself. Additionally, the banks determine charges on the applicant’s Rs 1 lakh personal loan EMIs based on chosen repayment tenure.
Conclusion:
Personal loans have proven useful for many people as they allow the flexibility of using the loan amount for any purpose. For instance, you can use a Rs 1 lakh personal loan to either finance your short-term needs or meet your financial obligations. Usually, there is no interference by the banks, and a borrower can use the approved personal loan amount in any way they want to. Moreover, the instant loan online application procedure has made it much easier and hassle-free to get the required amount.
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