Why A Personal Loan Is A Good Choice To Raise Funds For Your Financial Needs

Your financial needs, if you are a salaried employee or a businessman, may occur without any forewarning. You could have enough funds saved, however there are situations in which you find yourself in need of some extra funds. In such a scenario, taking a Personal Loan can prove to be a good choice. There are advantages of opting for this loan, especially if you have a good credit score.

What is a Personal Loan?

This is an unsecured loan, which means you do not need to provide a collateral to borrow. Banks and financial institutions can offer this loan at a lower interest rate, if you have a good credit score.

Some benefits of this loan can be:

• Low interest rates - Interest rates on this loan, as compared to repayment of Credit Card or Credit Card Loan is significantly lower. This is especially true in case of larger amounts.

• Variety of usage - Funds you receive via this loan can be used for a variety of purposes. Be it to fund an international trip, purchase a gadget or repay your friend, you can opt for a Personal Loan to satisfy any of these needs.

• Consolidated debt - One of the best ways of utilising a Personal Loan is consolidating all existing debts. It is wiser to pay off smaller high interest debts such as Student Loans or Credit Cards by opting for a lower interest loan.

• Improve credit score - This is especially true in case you have similar types of existing credit. A Personal Loan can prove to be useful in improving your score by adding variety to the types of account you hold.

• Create an emergency fund - You might find yourself living pay-cheque to pay-cheque, without any funds to save. In such a scenario, rather than waiting for an emergency to occur, it is wiser to get a loan to create an emergency fund. It could be medical expenses or a sudden trip you need to take, having a rainy day fund is always a good idea.

The best advantage is ease of repayment of Personal Loans. So if you find yourself in need of any extra funds, a Personal Loan could well be your answer.Ab Jio Shaan Se!

Apply for personal loan by clicking here

* Terms & conditions apply. Personal Loan disbursal at sole discretion of HDFC Bank Ltd.