Tight financial situations have resulted in the growth of various finance institutions offering loans for attractive terms. If you are among the countless people seeking loans to settle your dues, fix your garage or meet tour expenses, the best option available for you is personal loan. While banks come up with various packages that seem attractive, personal loans are the best to suit your needs and your wallet. Here are some of the reasons why personal loans are more beneficial than other loans.
Loan Without Collateral – Stay Secured
The striking feature of personal loans is that you are not required to provide collateral in any form. In case of secured loans, you will be required to pledge an asset corresponding to the loan size. It could be your vehicle or your home that you might have to pledge with the bank to obtain the loan. You stand at risk of losing your asset in case you are unable to repay your loan.
In case of personal loan, which is a form of unsecured loans, you are at liberty to seek loan without providing collateral. You need to submit the required documents that reflect your monthly income and other basic documents to verify your identity to be granted the loan.
Minimum Processing Time – Where You May Love Speed
Unlike other forms of loans, personal loans require lesser time for processing. In other loans where your asset is at stake, the banks or other financial institutions might need time to verify the documents related to your asset. Since personal loans do not involve any collateral, the loans are processed faster. This could be of great help when the need is very urgent.
No Questions Asked – Handle The Loan The Way You Like
This is yet another important advantage of personal loans. In other loans, you might be asked to provide the reason for the loan. You might be required to inform how you intend to spend the loan amount. In personal loans, you are perfectly at liberty to spend the money the way you like. Most of the people who seek loan have urgent bills to settle be it grocery bill or car repair expenses. They might be planning on a short vacation as well. There might be other loans to settle to avoid harassment. Since personal loans can be used in any way the borrower prefers, they are considered the best for those in financial mire.
Face Saving Loan – Best Alternative To Loan From Workplace
Advance loan from your employer is one of the loan types that could come in handy. Here the documentation could be almost nil and you might get the loan sanctioned immediately. The loan amount will be deducted from your salary every month until the due is settled. One of the major disadvantages of this type of loan in comparison with personal loan is that the repayment schedule is mostly fixed by the employer and you might simply have to accept it.
In personal loans, you could take into account your budget and other commitments while opting for the loan tenure. The loan term in personal loans could extend up to 60 months unlike the advance loan you obtain from your employer. Advance loan is only for a minimal period. Moreover, loan from your workplace may not always go well as you might not want your financial position be known to your colleagues or the management.
Personal loans are the best as they offer you flexibility in choosing loan amount and repayment term. They are also processed very quickly and you are free to use the money the way you like. While opting for personal loan, make a comparative study in the market and go for the package that provides you with the best benefits.