Life is uncertain and you never know what situation you may be in. A hospitalization, wedding, or a dream vacation; you may need funds for all these. Until a few years ago, availing loans from banks was an extremely difficult task.
However, non-banking financial companies (NBFCs), as well as banks, now offer different types of loans to meet your various fund requirements. Some of these are secured and others are unsecured facilities.
One kind of an unsecured facility is personal loan. Lenders provide you money based on certain factors, such as your age, income, profession, and others. Unlike a car or home loans, the borrowed funds may be used for any legal purpose.
Many people hesitate to apply for such loans because they think that the rate of interest on these is very high. However, these are available at an affordable rate that does not cause any financial distress during repayment.
Lenders now provide a flexible personal loan, which makes it easier to service the borrowed amount in a timely manner. Here are three beneficial features of such flexible loans.
You are able to draw down and repay the amount as per your requirements and convenience. This versatility is available without paying any additional fees or charges. The withdrawal amount is limited to the sanctioned amount. You may repay the amount as per your cash flow situation. Furthermore, you may again withdraw the funds, if required.
You may be eligible for a higher loan amount based on the criteria of the lenders. This allows you to draw down a higher sum if required. However, the interest is paid only on the amount you actually withdraw from the sanctioned loan amount. Therefore, the effective rate of interest is competitive and ensures you do not have any trouble while repaying the loan.
Some lenders allow you to convert your flexible loan to a regular term loan within a specified period. Therefore, if during the loan tenure you realize that making a bullet principal repayment may be difficult, you may convert your loan. This allows you to repay the balance outstanding amount in equated monthly installments (EMIs).
A flexible repayment option allows you to focus on your priorities without dealing with financial concerns. A regular loan is repaid in per-determined EMIs on a specific date. However, if you are self-employed and have regular cash flows, a flexible loan is beneficial. It allows you to use up to the sanctioned amount as per your requirements while only paying the interest at regular intervals. You may then repay the entire amount when you have the funds without paying any additional charges or fees.
Apply for a personal loan today and enjoy flexibility while meeting your financial requirements.