One of the easiest and trending ways to gain access to easy funds in times of emergency is an online personal loan. Nowadays, availing this type of loan is as easy as ordering groceries from your smartphone. 

You just need the right application and an internet-enabled smartphone. Ever since technology has taken over, long gone are the days when people had to travel to banks repeatedly to get a loan. 

What is a personal loan?

As the term suggests, it is a type of loan that allows an individual to borrow a fixed amount of money from a lender, which is usually a bank or financial institution for personal needs. In addition, these loans are generally unsecured, which means that one doesn’t have to put up collateral such as a house or a car to get the loan. 

Moreover, it can be used for a variety of purposes, such as paying for a wedding/event, home renovation or even an expensive appliance. The amount to be borrowed by the individual depends on various factors such as credit score, income, age and other financial factors. 

What are its advantages?

  • Flexible

These types of loans are flexible in nature and can be used for a variety of purposes. For example, as mentioned above, it can be used to pay for an event/wedding, home renovation or even an expensive electronic appliance. 

  • Lower Rate of Interest

Quick personal loans have a lower interest rate than credit cards, making them a much more effective option for borrowing money. 

  • No Collateral

As they are unsecured, the borrower doesn’t need to put up any collateral. It is all about their creditworthiness and ability to repay! 

  • Credit Score Improvement

On-time and regular payments help one improve credit score. This ultimately makes it easier to obtain credit in the future. 

What are the different types of a personal loans?

      1.Unsecured personal loans

This is one of the most common types of personal loan, as it doesn’t require any collateral. Only based on the borrower’s creditworthiness and the ability to repay the loan is it granted by the lender. 

      2.Secured personal loans 

These loans require the borrower to pledge collateral such as their car or home to secure the loan. When an individual opts for this, they can qualify for a larger loan or a lower interest rate. 

      3.Debt Consolidation Loans

This type of quick personal loan is designed to consolidate high-interest debt into a single loan with a much lower rate of interest. This helps the borrower save money on interest and simplify the monthly payments. 

Which application to use?

I’m not promoting any organization/brand here but just sharing my personal experience so readers can have the same. Around three months ago, when I was planning to avail a loan to complete my home renovation, I just went on the internet and searched for the “best personal loan in india”. 

This was when I came across ‘Stashfin’, about which one of my friends had told me earlier. Believe me, they offer loans at a 0% interest rate, and one can easily avail the same from their website or download the application. It is highly recommended! 

About Stashfin

Stashfin, one of the best loan apps, is a digital lending venture started by a team of former financial services professionals dedicated to disrupting traditional lending in India. The team has worked with reputed firms in the Banking and Financial Services space, such as Bank of America, Merrill Lynch, Citi, Deloitte, Kabbage etc., in India and the USA.