There has been a dramatic shift within the Indian financial segment. From a few years ago when one had to visit a bank’s branch to apply for a personal loan – with a lot of paperwork – we now live in a time when everything is available at the tap of a click. With government changes, the fintech industry has developed, making it easier for people to get an instant personal loan.
A recent survey conducted by a smartphone manufacturer in India saw that most Indians take a personal loan for main 5 reasons – medical emergencies, shopping, wedding expenses, travel expenses, and education. While it can be surprising to see ‘shopping’ in the list, the fact of the matter is that most of us can afford to pay for designer clothes for a special occasion now – something that has eased further with the availability of personal loans. So, what makes personal loans famous for many Indians? Let’s find out.
Reasons for the popularity of personal loans
Applying for a personal loan has become easier. With internet banking available to every account holder, applying for a personal loan doesn’t take much. If you have a PAN card and an Aadhaar card, then you can apply for a personal loan, complete the V-KYC and get the amount credited to your account within minutes. As opposed to home loans or car loans, personal loans are easier to obtain.
One of the main USPs of a personal loan online is that you don’t need to provide any asset as collateral to the bank to avail of a personal loan for any reason. The only factor which is considered is the borrower’s ability to repay the loan amount with the predetermined tenure and EMI.
The processing time for personal loan applications is shorter than for other loan applications. This factor makes it popular as people needing urgent cash don’t have to wait for long to foot their bill. They get the funds disbursed within 24-28 hours after submitting the required information.
You just need to provide your mobile number which is linked with your PAN card and Aadhaar card to banks like IndusInd Bank to get an instant personal loan.
You can avail of a personal loan online, without leaving the comfort of your home. When you apply for a personal loan online, banks provide you with the best personal loan offer based on your credit score, payment history, age, monthly income, etc. You can submit the required information online without providing any assets and expect the amount credited within a few hours.
Personal loans are popular because they can be used to fund any kind of expense. Whether it’s a medical emergency or home renovation – you can avail of one without dipping into your savings to foot the bill for the emergency expense. A number of Indians are increasingly turning towards the personal loan to fund their education expenses, flight tickets, appliances, gadgets, smartphones, etc.
The above-mentioned factors are a few of the many reasons why personal loans online have become popular among Indians as the new financial service for funding necessary expenses. So, look for banks that provide personal loans at the lowest interest rates and apply for one today without any stress.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.