Whether you are facing a sudden need for extra money or can't wait anymore for that long awaited vacation or wanting to refurbish your house, all is now achievable if you have your finances planned out and can shell out small EMIs per month.

A Personal Loan is often also called an ''All-purpose loan''. Because you can utilize the loan money for any purpose.

How difficult is it to get a personal loan?

Quite easy if you have a good CIBIL record, your credit information score shows how much loan you already have and whether you are defaulter or have a good credit record. Approval of your personal loan is mostly based on your credit history and your individual revenues. If you wanted to have a rapid loan process with minimum documentation then this is the loan for you. The best thing about this loan is since there is no monitoring; the loan can be effectively used to satisfy any means.

What is the easiest mode of repayment?

The repayment usually consists of the principal amount borrowed and the interest on the principal amount, equally divided by the number of months over the loan tenure. To pay the EMI on a fixed date of the month will help you in advance to plan your overheads each month.

Eligibility

All you need to show is…
1. Your annual income
2. Current EMIs
3. Credit history of a borrower

The lender will regularly check their CIBIL records to make sure that your previous debt records are clear and you are financially solvent.

Though, below are few safeguard one should keep in mind while taking personal loan.

1. High Interest Rates

A high interest rate simply defines to pay the high amount of interest if only the loan is really worth the purpose.

2. Short Term

When you are getting a Personal loan, it may similar to the short repayment term. This may describe that you will not have long period to repay the loan.

3. Late Fees

If you are late, they may charge large late dues up front. So, schedule EMI date at your ease which will suits your pocket.

How to decide between personal loan and credit card?

The advantage of a Personal Loan is that you get quick loan endorsement, easy repayment options and lesser charges. All these combine to make the average Personal Loan more attractive than it was in the past.

Personal loans limit your overspending

One competitive area with credit cards that's not apparently felt is that of 'liquid money,' where assets are obtainable at any given point in time for any amount. Purchases made with a Personal Loan, are planned and therefore are generally never overstretched.

Now give your dreams the wings they need to fly high with Personal Loans. Make sure you get the one that’s perfect for you. Do not settle for just any Personal Loan without having compared it first. Because you deserve nothing but the Best Deal.

(Manavjeet Singh, Founder & MD, Bestdealfinance.com)