Loan Problems

A small car outside your bungalow, the best education for your child, a unforgettable wedding for your sister, the best treatment in town for your ailing family member, jewellery for your wife or a big refrigerator and a microwave and an air-conditioner…not to forget rising credit card dues…

The solution to these needs, wants and problems lies in finance. Name it and personal loan offer a quick, logically easy solution!

Unlike other loans, this loan is a harass free loan. No clarification, guarantor, security required for this loan! Isn’t it too good to be true? The loan can be used for renovating property, marriage expenses, medical expenses, holidays, purchasing consumer durables, higher education etc.

But why a personal loan when there are specialized loan products to meet specific needs? They may not be always helpful.

Let us take the example of one of the most fundamental needs – good education. While an Education Loan covers the costs relating to your course and the cost of living, your parents may have still needed more cash! Who else would they turn to, but the good old friend-personal loan? You may find it difficult to get a study loan from banks if you plan to do a correspondence course or a part-time one. This loan will help you stick to your plans.

Fast forward. A fairly well-paying job, an educational loan to be paid off. Time to change your second-hand bike for a new car. You will surely not be an ideal candidate for car loans. The possibility of getting a car loan is low even when you settle for second-best, a used-car.

A personal loan will buy you a used car or a new one if your income can justify it. If you fall short of funds for the down payment of the car, (after getting a loan), this loan will help you seal the deal.

Sounds good, doesn’t it! Well, there are a few things to keep in mind, about these loans. You get this loan, primarily based on your income. If you have taken any previous loan, the repayment track record along with your employer’s profile will have a bearing on this loan eligibility. It can also be availed against proof of life insurance policy premium receipts.