Why taking a personal loan is better than borrowing money from friends and Relatives

Any individual facing a financial crunch or requiring urgent cash tends to borrow money from friends and relatives rather than approaching a financial institution for getting a personal loan. This decision, however, could always backfire, resulting in things getting worse. Borrowing from friends and relatives could affect one’s relationships with them. At times, friends and relatives would be burdened with the request because of their financial constraints. There could also be the possibility of the friends and relatives not having the exact amount of cash an individual requires. Friends and relatives could also ask for repayment within a short period, which is not always possible. A personal loan interest rate is pre-decided and convenient but friends or relatives can set their own rules. Also, if one does not repay in time, things could also worsen to an extent, where the relationship/friendship itself is jeopardized. So any borrower must consider a personal loan for meeting the existing cash requirements. With the advent of online personal loans, the process has become easier than ever before.

Advantages of a personal loan vis-a-vis borrowing from friends and relatives:

1. A personal loan is a multipurpose loan: Borrowing from friends and relatives may fall short of meeting the fund requirements for an individual’s urgent needs. On the other hand, a personal loan can help one meet a wide range of requirements – be it a sudden, emergency expenditure or a major life event. Thus, a personal loan can help a borrower meet the fund requirements for travel, wedding, education, home renovation, medical emergency, debt consolidation and so on.
2. Calculate EMIs instantly with the personal loan emi calculator: If any borrower is worried about the amount of Equated Monthly Installments (EMIs) being required to be paid, one can use the personal loan EMI calculator. This online tool instantly calculates the amount required to be paid as EMIs; both as repayments towards principal outstanding and as interest payments. It helps a borrower to have a convenient plan for repaying the debt.
3. Attractive personal loan interest rates: You need not worry about high interest rates while availing a personal loan. One must, however, remember that a personal loan interest rate is contingent upon factors, like a borrower’s CIBIL score, personal loan eligibility income etc.
4. High-value loan amount at flexible repayment tenures: Apart from the convenient personal loan interest rate, a borrower can avail a personal loan ranging from Rs 75,000 to Rs 25 lakhs. This personal loan can be repaid in flexible repayment tenures – between 12 months and 72 months. This can allow any borrower to choose a high-value personal loan, and repay as per one’s financial convenience.
5. A personal loan is hassle-free: Any individual can apply for a personal loan online, which comes with simple eligibility conditions and minimum documentation. Anyone between the age of 22-58 years with a good CIBIL score, earning a minimum amount of Rs 15,000 per month, and having one year of continuous employment can apply for a quick, hassle-free personal loan online.

Thus, individuals facing a cash crunch must avail a personal loan at a reasonable interest rate instead of borrowing from friends and relatives. A borrower can zero in on the personal loans from a trusted institution which comes with zero collateral and also has an overdraft facility.