Many individuals need loans at some point or the other. It can be regarded as one of the parts of life. Financial emergencies are one reason why individuals seek out loans. However, taking loans from lending institutions is usually time-consuming. Moreover, you are eligible for the loan only if your credit score is good. As a result, it is easier to borrow the amount required from your friends and family. Despite the ease, it is not a good idea to take loans from friends and family. Instead, you can take a personal loan to satisfy your needs.
As per data, Indians took out personal loans with an increase of 12.3% in February 2022 on a year-on-year basis.
This article will specify five reasons a personal loan is a superior alternative to borrowing from family and friends and the procedure to apply for personal loan online from Fullerton.
5 REASONS WHY A PERSONAL LOAN IS A BETTER ALTERNATIVE TO BORROWING FROM FAMILY & FRIENDS
Personal loans are unsecured loans. Unlike other loans, personal loans require very little documentation and are disbursed quickly. The loan amount eligible depends upon your income and credit worthiness. These have flexible end uses, meaning you can use the loan for any purpose unless specified by the lender. Additionally, borrowers can choose their loan tenures according to their repayment capacity.
Given below are five reasons why you should apply for a personal loan instead of borrowing from friends and family:
- Transparent loan T&C: When you borrow from your family members and close friends, there is no clear-cut description of the loan’s details. Specifics like loan tenure, the interest rate charged, and repayment schedules are not clearly defined. It may lead to conflicts during repayment. Therefore, it is best to apply for personal loans where details are elucidated and understood by both parties.
- Designated repayment schedule: When you borrow from your acquaintances, the repayment schedule is not defined. It can lead to confusion between you and the person you borrowed from, which may lead to disputes. Since personal loans’ terms and details are specified in the document. It is easier to plan forward and repay the loan timely. This helps in improving your credit score.
- No disputes: As mentioned above, the terms of the loan are not specified while borrowing from your family and friends. It can result in conflict between you and your loved ones. It harms the relationship you have with your kin. There is no such friction with a personal loan, preserving the relationship between you and those you love.
- Official and Enforceable: Your lending institution may change the terms and conditions of the loan when you borrow from friends and family. As the details of the loan are not specified, they are not legally binding. If the lending institution decides to increase the interest charged, you are powerless to fight this deceit legally. Personal loans are lawfully enforceable. Suppose any of the parties neglect their duties and obligations. In that case, you can take the other party to court and hold them accountable.
- No Indebtedness: Borrowing from your close ones means you owe them a favour since they did you one. You are required to help when they seek your assistance; otherwise, they will feel hurt. It can lead to disputes between you and your loved ones. A personal loan ensures that there is no such obligation. You can end the relationship between you and your lending institution as soon as you repay the loan.
How to Apply for Personal Loans Online from Fullerton?
You can take an instant personal loan from Fullerton India’s website or mobile platform. The complete loan application process happens online. The loan has a flexible repayment schedule and is given at a competitive interest rate. The documents required for the applications are photos, identity proof, address proof, salary proof, and bank statements.
You can seek a personal loan through Fullerton’s Loan App – InstaLoan. The platform is quite intuitive, and the loan application process is easy.
Applying for a personal loan is a superior alternative to borrowing from family and friends. Even if you urgently need funds, apply for personal loans. They have meagre paperwork requirements and are approved very quickly. Find out the interest rates charged by each lending institution. Consider the risks properly and avail of the loan at the lowest interest rate possible.