In uncertain times, financial stability might seem like an elusive goal. However, personal loans, especially long-term personal loans, can serve as a lifeline, significantly lowering your financial burden. Over the past few years, the demand for personal loans has increased, thanks to their quick disbursal, flexibility, and versatility.
So, how can long-term personal loans assist in alleviating your financial burden? Let’s understand.
1) Debt consolidation
Long-term personal loans act as a strategic product for debt consolidation. If you are grappling with various loans, each with a distinct repayment schedule and interest rate, it can be overwhelming. Securing a long-term personal loan allows you to consolidate multiple loans into a single loan with one manageable monthly payment. This not only simplifies your debt management but might also lower the overall interest you pay if the personal loan has a lower rate of interest than your prevailing debt obligations.
2) Lower monthly payments
One of the essential benefits of long-term personal loans is that the repayment is spread over a longer period. This results in lower monthly repayments than short-term loans. Consequently, this can free up your monthly budget, lowering financial stress, and making it simpler to manage your cash flow. You can use an online personal loan calculator to determine your estimated monthly payments before you apply for the loan.
3) Flexible use
Unlike most credit options, like auto loans or home loans, which must be utilised for a specific purpose, personal loans can be utilised for various purposes. Be it renovating your home, paying for unanticipated medical expenditures, consolidating debt, or even financing a dream vacation, the choice is yours. This flexibility makes this loan an attractive option.
4) Quick disbursal
Exigencies wait for no one. In a scenario where you require funds instantly, an instant personal loan for the long term can come to your rescue. Banks like IndusInd Bank have a straightforward and quick process in place. The bank eliminates the need for physical documentation and the application process is 100% paperless. Besides this, the disbursal of the loan proceeds is also quick. Other benefits of the personal loan offered by IndusInd Bank are:
Repayment tenure
Between one and four years
Loan proceeds
₹30,000 – ₹5 lakh
5) No collateral required
Personal loans are unsecured, which implies you do not have to pledge any security or assets to secure the loan. This feature is especially beneficial for those who do not own any assets. This makes personal loans accessible to a wider range of borrowers, including younger individuals who might not have had the time to acquire substantial assets.
6) Boost credit score
If managed in a disciplined manner, a long-term personal loan can help in improving your credit score. Periodic and timely loan repayment is seen as a positive credit behaviour, reflecting your reliability as a borrower. This can improve your credit score over time, making it easier for you to avail credit in the future.
To sum up
Long-term personal loans can be a practical financial product for managing your finances and reducing your financial burden. They offer benefits such as lower monthly payments, quick disbursal, and flexibility of use, and can even help improve your credit score over time.
Additionally, an instant personal loan from a reliable financial institution can make the process even smoother with a stress-free application and instant disbursal. If you find yourself under financial stress, a personal loan could be the perfect solution. Before opting for this loan, be sure to use an online personal loan calculator to better understand your repayment potential and plan your finances according to your budget.
