If there’s one thing my generation stands by, it’s that you don’t have to sacrifice on life just because you don’t have the money for it right now. Since I first came to Mumbai for my first job, my challenge was to get a home for myself. Since the money I made then wasn’t enough to accommodate my needs, I took a personal loan to assist my cost. It was a loan that I repaid conveniently in a short span of time. A few months later, I took another loan to help furnish the house and turn it into a beautiful home.

When I went to meet my parents for a family function, I was excited to tell them about my new life in Mumbai, and how I managed to get it all done, on my own. However, my parents looked at me with sheer horror. “How could someone as young as you take two loans?” exclaimed my father. He was worried that I was now going to be stuck in a debt trap like so many of his peers back in his days. My mother became hysterical and exclaimed I was being rash and foolish. She offered to take a loan against her gold jewellery or their PPF amount so as to repay my loans. They didn’t want me to bear the burden of a loan so early in life.

I was left perplexed at first but then I understood why they were worried. For my parents, taking a loan was a big deal. In their time, people took loans only in case of extreme emergencies like medical necessities. What they didn’t understand was that personal loans have come a long way today. They aren’t meant solely for those desperate times. Personal loans have evolved. They are easy to obtain and repay too.

I went on to explain to them how online personal loans work.

Easy procedure

Personal loans no longer require visiting banks on numerous occasions or standing in long queues. I told them how I got an online loan through an app. All I had to do was match their eligibility criteria and submit the necessary documents online. It was a paperless procedure with one-time documentation and no hidden fees. Once it was approved, I got a quick personal loan.

No collateral

Then I went on to explain how a online personal loan was an unsecured loan. This meant I didn’t have to pledge an asset as collateral. There was no risk involved like losing a house or FD against which most other loans are taken.

Builds credit score

Further, I explained to them how taking an instant personal loan and repaying it on time helps build a positive credit score. The better the credit score, the better were my chances of getting loans in the future. A good credit score also meant that banks and financial institutions would offer me a better rate of interest if I took additional loans.

Once I explained to them the ease of taking an online personal loan, my parents seemed a little relieved. In fact, my father even asked my opinion on taking a personal loan himself to renovate the kitchen this year.

Like my parents, many people fear the word loan. However, personal loans are no longer like traditional loans. They are perfect for our generation. We can use it for every kind of personal need.