To know about personal loan and several pros and cons related to it.

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Pros Cons of Personal Loan
PowerPoint Presentation on Pros Cons of
Personal Loan
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What is Personal Loan?

• Personal Loan - Personal loan also known as
  signature loans or unsecured loans. Personal loan
  is not secured by collateral. Collateral means
  something of value like home or car that lender
  can repossess if you dont pay the loan amount.
  The personal loan amount can be used for any
  personal expenditure such as wedding,
  vacations,home renovation. It helps to meet your
  current financial needs

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Applying for a Personal Loan

• It may be easier to get a personal loan from a
  bank you already have an account with. The bank
  will probably want to know what you're going to
  use the money for and may even have a better loan
  for your needs.
• One needs to be of a minimum age of 21 years and
  should have a valid set of documents like ID
  proof, income proof and residence proof among
  other documents to avail the loan. To ease the
  burden of paying off the loan immediately, you
  may opt for the EMI (Equated Monthly Instalment)
  facility. The repayment tenure can range from
  anywhere between 12 to 60 months.

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Pros of Personal Loan

• Below are the important pros of personal loans
• No collateral required Most of the personal
  loans are unsecured. Therefore, they do not need
  any collateral.
• Multi-purpose loan -Amongst the many advantages,
  it being a multi-purpose loan is the top-most
  reason. A personal loan provides flexibility of
  use. Be it for home improvement, medical reasons,
  or even covering marriage expenses, it would be
  the ideal solution.
• Best way to improve credit score -A personal loan
  is the best way to improve your credit score.
  Even though your credit score depends on all your
  credit activities,it plays the most important
  role.
• Negotiation on Interest Rate Having a good
  credit score can give you the power to negotiate
  the interest rate offered. The interest rate
  majorly depends on your credit score. This is why
  it is possible to get an easy personal loan with
  minimal paperwork.
• Quick disbursal when compared to other forms of
  credit - It is easy to get quick disbursal on
  personal loan when you compare to other loans.
  Therefore, it can be the friend in need in times
  of financial emergencies.

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Cons of Personal Loan

• Below are the cons of personal loans
• High-interest rates - Since a personal loan
  approval is entirely based on your
  creditworthiness, it, therefore, attracts higher
  interest rates. However, this can be prevented if
  you have a good credit score.
• Strict eligibility criteria - Being an unsecured
  form of credit, the eligibility criteria is very
  strict. Generally, a person with a good credit
  score (700 or above), enough repayment capacity
  and a good income are eligible. This is why it is
  always advisable to check your eligibility before
  applying.
• Adverse effect on credit score - Just like
  on-time loan payments are the best way to boost
  your credit score, a single miss of payment
  adversely affects your score. Hence, a person
  must be careful to not miss any payments. A good
  way to avoid missing payment is if you use an EMI
  alert reminder.

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Apply Personal Loan via IndiaLends

For more information about Personal loan, please
browse www.indialends.com