A personal loan is essentially an extremely time-efficient and easily accessible source for borrowing money. The primary reason for this is the fact that a personal loan is unbound by any sort of collateral and therefore does not tie up to an underlying asset. This provides the prospective borrower with the option of planning their finances without worrying about keeping a collateral for obtaining the money required for fulfilling their financial needs.
The difference between needs and wants is something that a prospective borrower must consider before applying for a personal loan. Wants can be categorized into requirements that are not particularly essential and needs can be classified as requirements which are pertinent to not only grow ones’ overall standard of living but is also essential and cannot be avoided. This difference must be put front and centre when considering a personal loan as it can make or break a borrower’s credit profile and future need of finances. Therefore, it should be part of an individual’s plan and thought process when choosing to apply for a personal loan through an instant personal loan app.
PaySense not only strives to make the overall process streamlined and worry-free but also focuses on an approach where the prospective borrower or any consumer of its instant personal loan app, is taken care of and their needs are fully catered to and satisfied. PaySense therefore also strives to highlight the importance of a personal loan and how it can and should be a part of a prospective borrower’s financial planning in order to secure their future and have a prosperous life as a result of integrating a personal loan as a part of their financial plan.
Below listed are three reasons which are integral and must be paid attention to as to why a personal loan is of utmost importance to be considered as a part of a prospective borrower’s financial repertoire.
- Maintaining Your Credit Score: A credit card allows for instant payment and is an extremely easy way to fulfill one’s finances. However, there are several caveats attached to paying a bill using a credit card. Primarily, any and all purchases made through a credit card is classified as “debt” when a credit score is being calculated. What applying for a personal loan through an instant personal loan app essentially does is allow for an “mix of accounts”. Applying for a personal loan for financing multiple needs allows for a lower ratio of “utilization of credit”.
The lower this ratio is, the higher is the credit score of a borrower. Putting in a personal loan in an individual’s financial plan therefore allows them to keep this overall ratio low as the individual now has an alternative source of finance. Thus, this automatically allows for a consistently higher credit score. Additionally, paying back the loan as per a consumer’s considered and chosen tenure and loan amount directly supports this credit score and thus boosts it at a later point of time. Therefore, having a personal loan in ones’ financial plan not only helps in keeping their credit score consistently high but also helps achieve a higher credit score for further requirement of borrowing when need be thus acting as a security in the future.
- Financing a Wedding: A wedding is undoubtedly one of the most important milestones in an individual’s life. Planning such an event requires a high amount of resources and obviously monetary needs. Though prudent savings can help achieve it, savings also acts as a choking point for important investments that an individual must make to have a prosperous future. A personal loan through an instant personal loan app is one of the ways in which an individual can finance this important milestone of an individual’s life. A personal loan entered with the requirement of wedding finances or a customized marriage loan can ease up a prospective borrower’s financial planning processes. By applying for a personal loan and planning in advance for it not only gives a prospective borrower the time to properly plan out the loan repayment but also gives them the flexibility of making investments they otherwise wouldn’t have been able to if they would have chosen to save up for the marriage. Also, rather than using a credit card to support a wedding finance, applying for an online personal loan allows the borrower to save up on interest costs. In summation, utilizing a personal loan to finance a wedding allows for a more planned and financially prosperous future.
- Consolidating Existing Debts: There are instances in an individual’s life when they have to make purchase decisions which are sometimes out of their bounds to allow them to constraint themselves. These purchases may be extremely crucial and one might have to use their credit line through their credit cards for securing such purchases. What this ultimately means is an increase in debt, lowering of the credit score and lowering in the overall credit line of the individual. Applying for a personal loan through an instant personal loan app allows for a financially prudent way out. The entire debt can be consolidated in one go, thus allowing for an open credit line for future expenses, be it a want or a need. Also, the overall interest to be paid on the personal loan, in all probability, will be considerably lower than percentage rates which an individual has to pay on credit card debts annually. A personal loan therefore eases up financial pressure on an individual in the long term and also allows the individual for a consistently high credit score and an always available credit line in the long run.
The aforementioned reasons are extremely relevant not only in the short term but also a part of an individual’s financial planning in the long term. Personal loan is an easy and streamlined way of applying for monetary requirements and PaySense allows for a smooth application and easy disbursement of the loan through their instant personal loan app.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs