A personal loan can help you sort your financial emergencies and cover significant expenses like home renovations, educational costs, or planning a wedding.
To optimize your use of the loan, here are the top benefits to look for in the lending bank you choose.
7 Personal Loan Benefits that the Right Bank Must Offer
#1 – A Flexible Repayment Tenure
A good bank must offer a flexible tenure of at least 60 months to repay a personal loan. Then you won’t feel any pressure to make regular EMI payments and clear them quickly within the tenure.
#2 – Low-Interest Rates
Choose the best bank offeringand better rates if you draw a significant income and/or work at a reputed organization.
This can give you the following benefits:
- The lower the interest rate, the more conveniently you can pay the EMIs.
- With regular loan repayments, you can build trust in your relationship with the bank to get attractive interest rates on future loans too!
#3 – Balance Transfers at Low Rates
Did you know that a low debt-to-income (DTI) ratio can increase the chances of loan approval at competitive interest rates? You can lower the DTI ratio by reducing your existing financial liabilities. For that, choose a bank offering balance transfers of current personal loans and credit cards at reasonable rates.
#4 – Simple Eligibility Criteria
Some banks set simpleso you can easily qualify for them and use them to finance your needs. You just need to be:
- 25-65 years old as a self-employed person or 23-60 years old as a salaried individual
- Running your work or business for at least 3 years
#5 – Easy Processing of Loans
The best bank makes the processing of personal loans super-fast and easy. For that, you’re allowed to apply online for a loan using the website or loan app of the bank. This gives you the following benefits:
- The application process becomes paperless since it is digitized.
- There’s no need to provide any collateral as a security for loan repayment.
- You can get a personal loan approval in a few minutes once you meet the eligibility criteria.
#6 – Hassle-free Documentation
A bank facilitating digital processing of loans makes the document verification process hassle-free too! So, you can just upload the soft copies of the necessary documents online while filling the application form.
Plus, such a bank usually asks for only a few standard documents like:
- An income proof (income tax returns, etc.)
- An ID and address proof (Aadhar card, etc.)
- 3 months’ banking statement
- A debit card or Net Banking details for setting up an e-Mandate
- An e-Sign or e-Stamp for quicker disbursal
#7 – Quick Disbursal
Once a personal loan is approved, a good bank disburses it super-quick to your account so that you can start using the loan right away.