A financial emergency or exigency is something that is faced by almost everyone in their life at some point in time. In that scenario, there is a need for quick cash funds.
In those hard times, a Personal Loan is very convenient and in India, to meet immediate expenses, more and more people are availing the same. Whether you need cash or money for marriage, education, home renovation, to buy some property or asset, to pay medical bills, buying any consumer product, etc., instant personal loans can be a paramount solution.
Apart from meeting those emergency needs, if smartly used, a personal loan can save you money and improve your credit score. Let’s understand how
Debt Consolidation i.e. Clear Your Credit Cards Bills
If by any chance you have taken the loan under credit card, then you must be paying very high-interest rates i.e. up to 20% pa. This sometimes makes difficult to even pay the minimum monthly payment. And if you miss, then the heavy late fee is also charged. The interest rate on an instant personal loan is far less i.e. 8% to 14% pa as compared to credit card interest rate, thus it would be a smart move to take an online loan at the lower interest rate and clear all your credit card debts. This way you can save a significant amount on an interest rate of the total payout.
Improve or Increase Your CIBIL or Credit Score
Having a huge debt under credit card and using a credit card for daily needs makes your credit utilization score higher as you utilize the credit limit to its maximum. Lenders or banks put those borrowers under the high-risk category. Now, this is where personal loans can be a good friend because you can set loan tenure and EMI amount as per your repayment capability. Once you pay off your entire loan amount, it will not only decrease your credit utilization but also improve your CIBIL or credit score.
To Manage Crisis or Big Expenses
We all know emergencies don’t come with prior intimations and there would be times when we need huge cash or money to handle such a situation. With instant personal loans, you not only quickly get the cash or money but also get the flexibility to repay the loan amount in smaller EMIs over chosen tenure as per your convenience. It is better to take personal loans rather making the payment via credit card due to lower interest rates.
No Need to Pay Hidden Charges or Fees
Usage of credit cards includes many hidden charges such as finance charges, administrative charges, and many other additional costs, which most of the credit card users don’t know and are completely unaware of. Once these hefty charges levied in credit card statements, then only the user came to know and make a complaint to the company. But this is not a case with personal loans as every single detail is shared with the user before going into the agreement. You only pay what you have agreed on the terms & conditions; no other additional or hidden charges are