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How Long Does It Take To Pay Off A Personal Loan?

Financial challenges, whether they are for a short while or the long term, are never a pleasant experience. They can affect our day-to-day routine and force us to make various cost-cutting decisions. However, with an instant Personal Loan at your disposal, this doesn’t have to be the case. With the help of an instant Personal Loan in India, you can easily meet your financial obligations without straining your budget. 

Let’s learn more about Personal Loans and how they can help you accomplish various goals.

Personal Loans – The Financial Product to Fulfil Any Purpose 

Personal Loans are one of the best financial products in the market today. As an unsecured loan, it doesn’t require you to put up assets as collateral to avail of the loan amount. What’s more, you get to use it for almost any purpose that requires additional financial support.

A Personal Loan makes it extremely easy for you to fulfil your life goals without you having to worry about your finances. Let’s find out how it is different from other financial products and the advantages of availing of this loan.

What Makes a Personal Loan Different from Other Loans? 

Here are some of the best features of a Personal Loan that take it up a notch above other retail loans:

– Collateral-free Loan – Personal Loans are collateral-free, as mentioned earlier. You can easily apply for one without having to worry about putting any asset you hold as collateral.

– Multi-purpose Usage – A Personal Loan can be used for any of the below-mentioned purposes:

  • Medical Emergencies
  • Higher Education
  • Overseas Travel
  • Home Repairs & Renovation
  • Wedding Planning
  • Multiple Debt Payments

– Competitive Interest Rates & Charges – You can find Personal Loans at attractive interest rates and low charges. This will allow you to lower your EMIs and manage your finances more efficiently.

– Simple Eligibility Criteria – The Personal Loan eligibility criteria are quite straightforward to fulfil. If you meet the criteria, you can apply for a loan without any hassle.

– Minimal Paperwork & Documentation – Personal Loans don’t require too much documentation. You only need to submit basic documents for background verification, and you are good to go.

– Quick Approval – Most NBFCs offer an instant Personal Loan online in just a few quick steps. A fast loan approval process means you don’t have to wait for long before you receive the loan amount.

– Instant Disbursal – When your loan application has been verified and approved, it won’t take long for you to receive the loan amount. The disbursal is processed almost instantly.

– No Hidden Charges – Some NBFCs ensure that you know all about the fees involved with a loan application. You can do your research to find the best Personal Loans that come with no hidden charges.

– Flexible Repayment Period – You can repay your Personal Loan over a flexible repayment period. Some NBFCs offer Personal Loans with a flexible repayment tenure of up to 60 months.

How Long Will It Take to Pay Off a Personal Loan? 

The tenure of your Personal Lon can be affected by any of the following factors:

  • Loan Tenure – First, it all comes down to the loan repayment tenure as agreed upon by you and your lender. You’ll have to repay the loan as per the tenure specified in your loan agreement.
  • Disposable Income – Your income is one of the most essential factors that determine if you can repay your loan on time. If your income gets affected for any unforeseeable reason, such as loss of employment, this can impact your repayment tenure.
  • Variable Interest Rate – If you have availed of a Personal Loan at a variable interest rate, it can affect your loan repayment period. The reason behind this is the EMI amount, which may vary according to the interest rate.
  • Foreclosure / Pre-Closure – Foreclosure or pre-closure is the process of paying off a loan well before its stipulated tenure. If you decide to foreclose or pre-close your loan, it will reduce the overall repayment tenure.

Conclusion

To conclude, the tenure of your Personal Loan can get affected by one or more of the aforementioned factors. Hence, always remember to consider the various aspects of a Personal Loan and its repayment tenure.

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