You may not know these five things about personal loan, if you know, you will be in profit

Personal Loan: If you are in urgent need of money then a personal loan is probably the best option. Personal loan not only fulfills your financial requirement but also gives you many other benefits. Know about their benefits.

is easily found

• There is no security required for personal loan.
• Banks grant these loans based on the applicant’s income, cash-flow, credit score and repayment capacity.
• Good repayment capacity, good credit score and income enables the applicant to get the loan at low interest.

Can spend according to need

• You can use the personal loan money as per your requirement.
• The personal loan amount is directly disbursed to the borrower.
• It is not necessary to tell the applicant for what purpose he is taking this loan.

loan tenure

• In case of personal loan, you can choose the loan tenure as per your requirement.
• There is a flexible repayment tenure (usually between 12 months to 60 months) attached with a personal loan. You can choose this according to your need.
• Personal loans also come with pre-payment and pre-closure charges.

pre-approved

• Banks offer pre-approved personal loan offers to their customers who have a good credit score.
• Minimum paper work is required to take this loan. This loan is available immediately.

tax exemption

• Personal loan is not taxed. However, it is necessary that the loan should be taken from a legal source such as a bank or NBFC.
• Personal loan amount is not treated as income.
• To take advantage of tax exemption, you will have to show many documents like expenditure voucher, bank certificate, sanction letter and auditor’s letter.

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