Have you ever take personal loan? Are you cash-strapped and unsure where to turn for help to pay your financial obligations? Borrowing from friends or family members is the most common solution. However, this puts a burden on deep ties, therefore it’s best to keep legal and economic concerns separate.
Instead of approaching a relative in this circumstance, you may approach a financial institution and apply for a personal loan. A personal loan is a useful financial instrument because the cash borrowed can be used for a variety of things, such as debt repayment, house repairs or upgrades, wedding expenses, travel costs, or medical bills.
Getting a personal loan is today a simple and painless process. Why borrow from anyone when IIFL Finance offers highly competitive interest rates and speedy payout of personal loans up to Rs. 2 lakhs in as little as 10 minutes?
5 reasons to take out a personal loan instead of borrowing from relatives and friends
Transparency in Deals
Unorganized borrowings, unlike personal loans, do not come with clear terms. There is little clarity as to the nature of the transaction or the conditions. This could make you feel helpless or embarrassed if you don’t settle the advance properly.
Such events can be avoided by taking out a personal loan from a reputable financial institution, which adheres to the principle and clearly communicates loan terms and conditions.
Repayment Schedule That Has Been Set
Personal loans are frequently based on tacit agreements with no explicit payback requirements. Either you pay straight away or you forget to pay completely.
Personal loans save you energy / cost because you are conscious of your repayments or the EMI sum you must pay on a constant schedule.
Relationships are not hampered
Borrowing money from friends or relatives often comes with no interest. This indicates that the lender is not profiting from the agreement. The lender may eventually regret lending money or may require money in the future, in which case they could demand an excessive amount of interest or even request repayment of the loan balance.
You never want your relationship to fall apart because of financial miscommunications, which is why getting a loan is always a better option.
Legally enforceable
The disbursement of a personal loan is based on a legal agreement between the financial institution and the borrower. Outside of the contract, the borrower cannot be forced to follow any terms.
When you borrow money from a family member, there is no documented contract, that puts you at risk.
Avoid such circumstances by turning to personal loan India, which now offers express disbursals with little documents, such as a selfie, ID evidence, and proof of residence.
No responsibilities
Borrowing money from a friend or family member keeps you in debt to them for a long time after you’ve paid back the money. You’re continually reminded of their compassion, hence you owe it to them to assist them anytime they need it. A personal loan can help you avoid such obligations and awkward situations.
Personal loans are a good way to get money in case of a financial emergency.
According to the CARE Rating Report, the retail/personal loan market is growing. Thousands of personal loans have been effectively dispersed during this time to assist various households. You can easily get a personal loan with a low interest rate if you have a steady income and a good credit score.
