3 reasons to take out a personal loan as an employee

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A personal loan is an unsecured loan offered by all lending institutions in India based on financial credentials, age, city of residence, job profile, etc. of somebody. It has a higher interest rate than secured loans, but it has a simple application and disbursement process. This is because this loan is sanctioned faster than other loans and also has a shorter duration (usually spanning a few months, depending on the principal borrowed).

If you are a salaried person, it makes more sense to borrow a personal loan than to explore other avenues of financing. That is why:

#1 It keeps your savings intact from short-term expenses.

If you want to buy an expensive new phone or a set of appliances, you could immediately dip into your savings to pay for them. After all, that’s what savings are for, isn’t it? They pay for your needs whenever they arise. But think about this: you spend years building up a savings fund, but it only takes a few minutes to empty your savings. It takes tremendous self-control, commitment, and discipline to stay on track and save money consistently each month. Over time, it turns into a big fund of money. But it should be used for important milestones in your life, not for short-term needs like expensive purchases. Instead of spending your savings fund, why not use an instant loan app and get a personal loan? The loan is repaid in a few months and keeps your savings intact.

#2 It is quickly accessible in an emergency.

An online loan from a reputable lending app offers the fastest financial solution in an emergency. An emergency always comes unexpectedly and takes you by surprise. You may be unprepared to pay a large sum of money in the short term. For example, a family member may have an accident and require life-saving surgery, or your child may want to go on a study trip with the rest of their school, or creditors may come calling and you would like to settle their debt quickly. . Time is running out at these times and any delay can be dangerous. You could borrow money from your friends or even liquidate an investment or two – but these are avenues best not explored, and they may not yield immediate results. On the other hand, you can apply on a loan application and get the personal loan within hours. It helps tremendously when time is tight and the need is great.

#3 He can pay off an old debt.

As an employee, your only source of income is the salary you earn from your work. You want to maximize it by spending only on the essentials, while using the rest to make investments for the future. However, part of your monthly income is diverted to the repayment of previous loans. Managing multiple loan EMIs can become a hassle and eat into your income as well. Instead of continuing to pay multiple EMIs, take a tally of the total outstanding amount and take out an online loan to pay it off. This does two things: first, the old loans are finally repaid in full, and second, you now only repay the EMI personal loan instead of multiple EMIs. This is called debt consolidation and it greatly facilitates financial management.

How to get a loan from an instant loan app

● Install the preferred lending app and set it up in just a few steps.
● Check the personal loan product in detail – check the interest rate offered, list of documents, schedule of fees and charges, loan eligibility criteria, late payment penalties and fees, etc.
● Apply for a loan as instructed. During this time, self-certify the copies of the documents and keep the set ready to be picked up from your home for submission.
● The app checks your eligibility, credit score, documents and repayment history. If all the factors are verified, the loan application is approved and the amount paid into your account.
● You can repay the personal loan in simple EMI over a period of a few months.

Can you think of any other good reasons to take out a personal loan? Tell our readers in the comments below.

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