There was a time when personal loans were obtained only for emergency needs.

However, today, you will easily find them in the financial toolkits of many Indians. They have become a versatile borrowing option that helps you fulfill different purposes, whether planned or unplanned. The number of Indians obtaining personal loans is increasing every year.

This surge reflects a growing understanding and appreciation of the benefits that personal loans offer. So, what are those advantages that make personal loan demand go higher in India each year? Let’s find out.

No need to pledge any collateral

Perhaps the biggest reason why many apply for personal loans is that they are unsecured. Their collateral-free nature is extremely beneficial for borrowers who want immediate access to funds but don’t have any assets to surrender, such as property, deposits, inventory, savings, etc.

Simple eligibility and documentation

Instant personal loans are known for having simple eligibility criteria that focus majorly on the borrower’s income, employment status, and credit score. This approach simplifies the loan approval process and makes borrowing easier, even for those who may be applying for a loan for the first time.

IndusInd Bank Instant Personal Loans also come with easy-to-meet eligibility criteria that make borrowing highly accessible. You enjoy a seamless application process, quick processing, and speedy approvals, along with additional benefits like:

  • Best interest rate on personal loan offers
  • Borrow any sum between ₹30,000 and ₹5 lakhs
  • No stress about collateral or guarantors
  • Transparent fees
  • Enjoy a 100% online loan process
  • Choose any tenure between 1 to 4 years and repay in manageable EMIs

Use the loan proceeds for multiple legitimate financial needs

When you choose a car loan or home loan, you have to spend funds on specific purposes only, i.e., the car and the property. However, personal loans are multi-purpose loans that you can use for various legitimate financial needs, whether planned or unexpected, including:

  • Home Renovation: You can construct a new balcony, install new flooring, customize your roof, fix your walls, and more.
  • Debt consolidation: Merge existing debts into a single, manageable loan. No more juggling multiple debts, forgetting due dates, or paying high interest.
  • Health emergencies: Cover hospital bills, surgery costs, and medication expenses with a personal loan.
  • Wedding expenses: Use instant personal loans to finance booking venues, decorations, catering, photography, wedding attire, and related costs.
  • Travel and trips: Finance plane tickets, hotel bookings, and tour packages to create memorable vacations.

Make sure to use a personal loan calculator to simplify your repayment planning.

The tool helps you know how much your monthly obligations will be based on the loan amount, interest rate, and tenure. This helps you ensure your repayment strategy is more predictable and stress-free.

Quick disbursement for time-sensitive situations

With most banks offering digital platforms, you can enjoy instant approvals and disbursals. This speed is particularly valuable in situations where you need urgent monetary help, such as medical emergencies, marriage costs, or last-minute travel.

IndusInd Bank Instant Personal Loans offer this convenience. Just provide your personal information and loan details on the bank’s website. After that, complete the video KYC and sign the agreement digitally. Post verification, you will receive the funds in your bank account instantly.

No need to deplete your savings or withdraw investments

A personal loan helps you address all your financial needs without having to liquidate your investments or deplete your savings.

This approach is particularly advantageous when you are faced with large expenses but want to preserve your investments and savings for future needs or emergencies. You can make sure that your other financial goals, such as retirement planning, education funding, or wealth accumulation, remain on track.

Key takeaways

There are countless reasons behind the growing demand for personal loans.

You enjoy the absence of collateral, online availability, ease of planning through fixed EMIs, multiple-purpose usage, and consolidation of existing debts into a single account. Moreover, with timely repayments, you can build your credit profile as well.