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Personal Loan Benefits: Personal loans are being provided by private and government both types of banks these days. Nowadays personal loans are being proved to be life saviors. Since my college time, or grabbing a job in the industry, a personal loan provided by my bank has helped me a lot. Therefore I am going to explain in details the benefits of personal loan as per my own real life experience. Today I am sharing my personal experience and benefits of personal loans. And how it helped me to grow and save my life in critical situations.
After college, I wanted to go abroad for higher studies. But for higher studies one needs to get a student loan. And for a student loan you need to belong from a strong family background with good financial track records of your parents. The records in the bank you are applying for the student loan. Then they can be your guarantor for your student loan in any bank these days. But belonging from a middle class family chances of this are very rare.
Hence I couldn’t qualify for the student loan. But luckily I was doing a part time job along with my studies so I had one ICICI bank savings account. The ICICI bank is the largest private bank in India. So I started finding the options in ICICI Bank.
I still remember how tense I was. I made a phone call to the customer support executive. And I started inquiring about the options of loan when I was unable to get a student loan. Then the bank representative told me that my salary is way low and I can not get a bigger loan as per my financial track record. But he suggested that I can get a sufficient amount as a personal loan.
Although that amount was not good enough to send me abroad for higher education. Though it was good enough for one professional course which I always wanted to pursue. This gave me hope. The very next day I went to the institute and collected the information about that course and what would be the total fee cost of the course. What would be payment terms and such.
Fortunately that course’s total fee was exactly equal to the amount which ICICI Bank was providing me as a personal loan. I took that personal loan from ICICI Bank and completed my professional study in a few years. And later that professional study helped me to grab my dream job. Rest is history.
Now I own a startup and run it successfully. All because of that personal loan given by ICICI bank to me. Else who knows what would have been the story of my life without that personal loan and without that professional course.
While I am running a successful small business. Then still from time to time in my critical situations I leverage the opportunity of personal loans offered by my bank. And I do save myself from uncertain situations. You can argue that I might be a fool and I do not keep savings. That is why I do take personal loans. But this is not the case. Life is so versatile and if you are into business then there are some situations you can not avoid. So we need to learn how to save ourselves smartly with bad unforeseen circumstances.
Disadvantages Of Personal Loan
Many people can argue that there are disadvantages of personal loans. But can anyone tell me what is one thing in life or business which does not have any disadvantages. There are always two sides of everything. One side has good things and another side has bad things. But at the end of the day, the thing that matters most is how smartly you take advantage of good sides or good things.
Certainly there are disadvantages of personal loans. But if you know how to handle the debt, how to utilize the loan amount for your actual good reasons. You are good enough to repay the monthly installments. Then you are always safe.
You should always play smart with your finances. Whether it is a personal loan or any kind of financial debt. These facilities have been brought into the system to save some from critical unforeseen situations. And one should leverage the facility if they qualify for it. But after taking out a loan to get out of bad situations, the loan amount must be paid on time. Because it affects and controls your cibil score.
Advantages and disadvantages of personal loan. What are the advantages and disadvantages of taking out personal loans?
Advantage of personal loan: It might help you in your urgent financial needs. When no one in your friends and family is able to help you. But taking personal loans should be the last option. And you must find out other options first before taking personal loans. Because it is risky to take personal loans. It is unsecured loans and always whether it is private bank or public bank both banks do charge higher interest rates.
Disadvantages of personal loans: For any reason if you fail to pay the monthly installment amount of your personal loan then it will affect your CIBIL SCORE badly. Which is not good anyhow. Or by some unforeseen condition if you fail to pay the loan amount then banks can take legal action against you. And there might be situations where the bank can also take some distasteful fund recovery action against you. Which is certainly not good for your reputation in society.
Personal Loan Benefits in icici bank
Benefits of Personal Loan in ICICI Bank: ICICI bank is one of the largest private sector bank of India. It has many customer friendly loans and easy monthly installments payment options. Depending upon your financial track record with your bank. Banks do offer pre-approved-loans.
Such as pre approved personal loan, home loan, car loans and more. Which you can disburse in your account within seconds by going into your ICICI bank’s mobile banking app. Or by simply logging into your internet banking account. You don’t need to visit the bank branch. You do not need to talk to any customer representatives. Everything is automated and gets done in seconds.
And personal loan interest rates for the loans are also very reasonable. And also you do not need any documentation either. Simply login, tap, decide and apply. And within a second your pre approved loan amount is deposited in your savings account.
Personal Loans FAQs:
What are the advantages of personal loans in business?
There might be some situations where you fall short of some funds for any business purpose such as, expansion, renovations, products purchasing or any several reasons. There might not be anyone around you who can say yes to give that fund to you for any given time. Then in this situation a quick loan for that particular purpose can help you a lot.
What are the personal loan benefits in tax?
Personal loans are not your income so it is not a taxable amount. Therefore the government does not give any tax benefits on personal loans.
Although there are some secured loans such as Home Loan or Business Loan. These loans are considered as secured loans since banks can recover the loan amount from you by using these assets if you fail to pay the loan amount. So being secured loans in nature these home loans and business loans have tax benefits but personal loans do not have any tax benefits for now.
Is it good to take a personal loan?
There are several factors to answer and support this question but whether it is good to take a personal loan or not depends on your income stability, your monthly liabilities and your repayment capabilities.
What are 3 advantages of a loan?
The very first advantage is that you can get it quickly as per your financial track record without asking for help from someone else. The second advantage is that you get easy repayment options as monthly installments. And the third advantage is that you pay very low interest rates compared to other options.
Conclusion
Now from my own personal experience you know the Personal Loan Benefits. And how it can help you to grow in your life. And can save you from some uncertain circumstances. So your doubts regarding benefits of personal loan must have been cleared. But it is always advisable that taking a personal loan should be your last option. And you must be confident about repaying the monthly installments. Else if taken for no reason and you fail to pay the monthly installments then it might put you in trouble.
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