Personal loans have got numerous benefits and also many drawbacks as well. Personal loans can be used for any purpose according to the choice of the borrower. The lender does not ask for any proof for the expenditure of the loan amount taken. The borrower can avail of loans from any of the lenders of their choice. The interest rates being charged vary according to the lender; there is a drastic difference in personal loans interest rates being charged. Banks start taking installments from the subsequent month from the borrower as soon as the loan is being taken. Banks charge a heavy penalty to the borrowers in case of the delay or default of the personal loans. Also, the credit score of an individual may fall due to delay or default of loans. Thus it is recommended that the borrower should repay the installments on time to the lender. Personal loans can be obtained with minimal documentation, and also the process of approval of the loans is very fast compared to any other type of loan. The interest rates being charged are 9-24% per annum to the borrower by the banks
The borrower should choose the lender wisely by surveying the terms & conditions of the lender and also surveying the interest rates charged by various banks. It can be a heavy loss to the borrower if they agree to the higher interest rates as the repayment value may increase drastically due to higher interest rates. The tenure for the personal loans is usually five years. The borrower can even opt for lower tenure while applying for the loans to become early debt-free. The banks also charge processing fees to the borrower while approving loans. Some banks also charge a pre-payment penalty in case of repaying the loans early. Thus the borrowers should be careful about the penalty charges, whether applied or not by the lender. The loans can be utilized for marriage purposes, medical purposes, fund a child’s education, renovation of the property, or travel purposes. The funds are processed within 48 hours in the offline mode and within a few hours in the case of online mode. The banks approve loans of only those customers whose CIBIL score is at least above 700 points, without which banks usually do not approve loans.
Benefits of International travel dreams to fulfill through personal loans
International destinations are amongst the most liked ones amongst the people and the dream can be fulfilled with the help of personal loans.
Personal loans for travel purposes can be utilized with attractive interest rates of 9-14% per annum. Thus the borrower should try to avail of loans at the lowest interest rates possible.
Personal loans help one satisfy their dreams and can visit their dream destinations as per their choice with the help of personal loans.
The CIBIL score should be above 700 points to get the loans approved.
The bank requires documents like an aadhar card, pan card, income proof, and employment proof for the approval of the personal loans.
The personal loans can be taken with the amount capping at Rs.25 lakhs for travel purposes. However, the actual approval of the loans depends upon the income of the applicant.
The borrower can use tenure of 5 years for the repayment of the loans.
The personal loan installments start from immediate effect after availing of loans.
Many exotic destinations can be covered by the borrower with the help of personal loans.
The personal loans can be taken for the travel purpose to fulfill the dream of seeing the exotic destinations along with the family members or for the honeymoon purpose. Thus personal loans are very much beneficial for the borrower to fulfill the dream of traveling even while not having sufficient money.