Do you need financial recovery? Try with a personal loan

Do you need financial recovery? Try with a personal loan

Personal Loans might become a great ally to strengthen your finances. The confinement and social distance measures regarding the pandemic have caused a huge impact in the world economy, but also in the microeconomy of families. Paying for services, making home repairments or getting medical treatment, could be a heavy lift for anyone nowadays.

In order to sustain financially, looking for personal loans with a low interest rate would be a lifesaver these days. But one of the fears of applying for personal loans is the lack of information, because there is still a belief that credits are impossible to pay or can only be accessed by people with high incomes.

What are personal loans?

Despite having great similarities with commercial loans in how they are granted or paid, personal loans can be used for an emergency or for something more enjoyable, like vacations. Unlike commercial loans, which are mainly used to open a business, improve the finances of a company or to pay suppliers.

The main characteristics of personal loans include the following: No guarantee or collateral is required and no asset is needed, loans can be of small amounts, holding time ranges from one to 72 months and requirements are minimal. In some cases, interest rates can be customized according to your employment scheme, for example, if you are an employee of a company, an independent professional or a retired.

Consider these tips before applying for a personal loan

  • Before you apply, calculate the amount of money you will be able to pay each month without affecting your finances. This will help you to not fall behind in your payments. Also, consider the interest associated with the loan that you could pay.
  • Compare the interest rates of three or more financial institutions to find the one that best suits your ability to pay. You can use platforms like My Loan Care, to compare them.
  • Once you make up your mind, make sure you are clear about any other costs associated with the loan, as well as the timing, frequency of payments and transparency of the process.

Where can you apply for personal loans in India?

In India there are options for everyone and here are some personal loan alternatives that could help you with those urgent expenses.

  • HSBC

Personal loans from this global bank can be used for any type of financial need, don’t require collateral and can be granted with instant approval for payment terms between six and 60 months. It is designed for employees and self-employed people. One of the requirements is the submission of bank statements or payslips.

  • HDFC Bank

This bank developed the Step-up EMI program, with an affordable monthly equivalent (EMI) fee, starting from Rs. 1,829 for the first 12 months of the loan. Ideal for emergencies and extraordinary expenses during the contingency. The time for obtaining the loan is from one day and can be applied online by employees and self-employed.

  • CASHe

This personal loan is aimed at young people who are starting to be financially included. This institution has redefined the way in which creditworthiness is assessed in order to broaden access facilities. It is targeted at wage earners with a minimum salary of Rs. 15,000. The minimum loan amount is Rs. 9,000 to be repaid in 2-12 months.

Final considerations

Before applying for any of this financial products, you must be aware that this is money that is not your own and you must return in a certain period. It is very important to meet payment dates, so that in the future, you can have access to greater amounts.

Make sure you have a bank account, because most institutions request financial statements to grant personal loans or, where appropriate, demonstrate your solvency.

In difficult times like this, being able to access personal loans can solve problems that might affect your finances. Are you sure you will be able to overcome this crisis on your own? If not, perhaps it would be smart to look for a personal loan. The internet is a great tool to find the best credit option and make our own research before hiring one.

Manoj Datic