The loan sector in India has seen tremendous growth in recent years. The enhancement of digitization has further added to the popularity of the lending sector. Nowadays, due to increased financing options, minimum eligibility criteria and hassle-free application process, availing a personal loan have become comparatively easier. Let us have a detailed look some of the major aspects that have contributed to the growing popularity of personal loan sector in India.
Changes in the average lifestyle
In today’s world, people are more inclined towards making their lives easier and luxurious. Moreover, they wish to keep themselves updated with the technological trends. All these factors have led to a sharp rise in the expenses of the common man. Therefore, to manage their expenses in a better way, people have started opting for a personal loan with flexible repayment options.
The increased number of financial institutions provide a wide array of options to the borrowers. The borrowers can now compare various lucrative loan offers and settle for the one that best suits their needs.
Competitive interest rate
A personal loan is an unsecured loan and therefore has a high interest rate associated with it. However, with time, the interest rates on personal loans have reduced substantially. Through proper research and by comparing various loan offers, borrowers can avail personal loans at the most competitive interest rates. Moreover, since financial institutions check the credit report before approving the loan, it is advisable to keep the credit score high by making timely repayments and clearing the outstanding dues.
A few years ago, in order to avail a personal loan, borrowers were required to have a strong financial base. Nowadays, financial institutions also provide the option of availing small loan amounts. This has increased the customer base of personal loans significantly.
Easy application process
Digital lending has grown tremendously over the past few years. Loan application and disbursal have become completely hassle-free due to the online application process. Borrowers can receive loans from the comfort of their homes. This, in turn, has increased the number of people opting for it.
The government of India has been promoting entrepreneurship through various schemes and programs such as Startup India. Due to this, a lot of people are taking a keen interest in becoming their own bosses. Starting a business requires a large amount of money. Instead of liquidating their years of savings, entrepreneurs can consider availing a personal loan to fund their business idea.
Government and Finance
Currently, there are strict laws governing regarding bank regulations in India. These laws might become more lenient owing to the increasing financial awareness amongst the borrowers.
Now that you are well aware of the features of personal loans, you can consider availing them to fulfill your financial needs and requirements.
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