All of us do our best to make ends meet. We all desire a future that has enough savings and money to create meaningful moments with our families. While getting loans from banks are popular, most of India cannot access loans at fair rates because of lower incomes and salaries. In most cases, unless you earn 30-35k a month, it’s hard to get a loan at a fair rate.
The good news is that’s changing. If you plan and use loans for targeted needs and budget your monthly expenses personal loans can help you build a healthy credit. It can also help you build your credit limits over time. This lets you create a better quality of life for you and your loved ones.
What are unsecured loans?
You probably have heard of the word ‘collateral’ when it comes to big loans. Many banks want to ensure you have property or material items that can be used as a backup in case you are not able to pay the loan back. Unsecured loans have changed the way we think about money. These loans are based on your monthly income and your expenses. They are also given out based on your credit history, CIBIL scores, and bank monthly statements.
A personal loan is an unsecured loan that you can take out for a variety of reasons. You could use a personal instant loan to help fund a wedding in the family or finance a home renovation. Unlike secured loans (such as a home loans or car loans), personal loans do not require collateral. This means that you don't have to pledge any asset as security.
But, is it safe to take out a personal loan?
The answer is yes, as long as you do your research and borrow from a reputable lender.
Here are some tips to ensure that you are taking a safe personal loan:
Check the lender's reputation: make sure that the lender is compliant with the Reserve Bank of India (RBI) and has a good track record of serving customers.
Read the terms and conditions carefully: understand the interest rates, fees, and charges associated with the loan, and make sure that you can afford the repayments.
Compare multiple lenders: shop around and compare the loan offers from multiple lenders to get the best deal.
Avoid borrowing more than you need: only borrow the amount that you need and can afford to repay.
At NIRA, we offer personal loans that are safe, transparent, and affordable. Our 'No Tension Loans' can be up to one lakh, with fair interest rates (2-3% pm), flexible repayment options (up to 12 months!) and no hidden fees. If you make more than 11k a month, you are welcome to download the NIRA app from Google Play and see how much you can get approved for in just 3 minutes.