There is tremendous competition in the banking industry. Today, banks are liberal in approving various kinds of loans to its customers. Products like Personal Loans and Credit Cards have become common today with banks competing with each other to corner a more significant market share.
Does this mean that you should immediately Apply for a Personal Loan online? No, you have to consider various factors as loans can be a blessing only if you avail them at the right moment.
What is the Right Time to Avail a Personal Loan?
You should not avail loans just because you are eligibleto do so. There are advantages of availing Personal Loans –
- You need not explain the end use of funds to your lender
- They are easily available
- There is no need to provide collateral
- You get immediate access to funds
These Personal Loans can be a blessing if the timing of the application is accurate –
- You require urgent funds for a brief period, say 3 Personal Loans are the best options.
- There can be a big function at home. A Personal Loan is the right
- You might need money to pay the stamp duty for your home. As lenders do not finance stamp duty requirements today, the Personal Loan is a handy option.
- Personal Loans are great for meeting immediate business requirements like shortage of working capital, margin towards the purchase of new machinery, and so on.
- As the turnaround time is quick, Personal Loans are the best options in a medical emergency. Some lenders are providingPersonal Loans within 2 hours to customers having an excellent credit history.
- Personal Loans are better than Credit Cards to fund your immediate financial needs because they are cheaper when you repay in instalments.
- Being unsecured in nature, prompt repayment of Personal Loans improves your credit history.
Apply for the Right Loan at the Appropriate Time
- If you are looking for expansion of your business, opt for a Business Loan, with or without collateral. There are various products available in the business financing niche. You have long-term investments for the purchase of land, construction of the factory, purchasing and installing machinery and equipment, and so on. You have short-term financial options for meeting working capital requirements. There are facilities like bills discounting, invoice factoring, letters of credit and guarantees, and so on. The purpose of the loan is essential.
- Fund the purchase of your home with a Home Loan. They are the least expensive of all the loans. A house is a long-term investment. Hence, you need a loan having an extended repayment period. No other credit in the industry has a more extended repayment period than the Home Loan.
- In case you are looking to purchase consumer durables, explore the 0% interest EMI (Equated Monthly Instalment) options offered withCredit Cards. Specific shopping Credit Cards do not require you to pay any down payment as well. You have the facility of repaying the loan through easy EMIs.
- A frequent traveler can opt for the co-branded travel Credit Cards. They offer you reward points and discounts on air tickets and hotel bookings. Have a separate fuel Credit Card for meeting your fuel requirements. You save on transaction costs.
- For educational requirements, opt for a student loan. You have the flexibility of repaying the loan after you complete your studies and get a job.
In short, choose the nature of your loan depending on its usage. Remember, you have to repay the loan with interest. Choosing the wrong product can result in paying a higher amount of interest. It can interfere with your other requirements as well. Take advantage of the many products offered by banks and choose the right loan at the most appropriate time. Loans can indeed be a blessing.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.