One of the most popular forms of credit today, besides Credit Cards, is Personal Loans. Thanks to the technological advancements adopted by multiple banks, you can get Loans approved and disbursed within a few hours of submitting your request. You can apply for them from any corner of the world without worrying about mentioning the reason for usage.
Did you know you can use a Personal Loan to pay off Credit Card debts? While Credit Cards are gaining popularity in India and have multiple benefits, spending on things we do not require can be tempting. These expenses can spiral into debts, which can severely affect your finances. Here are reasons to apply for the Loan to repay Credit Card debts:
1) Benefit from lower interest rates
One of the greatest benefits of using Credit Cards is the interest-free grace period of 20 to 60 days. However, if you opt to pay after this or manage with only the minimum payment due, your provider will charge you a hefty interest. Instead of struggling to repay money monthly, you can apply for Personal Loans with lower interest rates and repay the entire amount.
2) Reduces negative impact on credit score
An applicant's credit score is the most important factor determining their creditworthiness. Delaying or missing your repayments will reduce your credit score significantly. Therefore, instead of struggling to pay the minimum amount every month, availing of a Personal Loan in India can help if you have racked up Credit Card debt.
3) Affordable repayment options
While both Personal Loans and Credit Cards are forms of debt, the former is relatively more affordable. Credit Cards come with an interest-free period. The interest charged is quite high if you do not take advantage of it. Meanwhile, the Personal Loan interest rates are comparatively lower than Credit Cards.
The equated monthly instalments are also low and affordable. The latter is easier on the pocket if you need to choose between Credit Card repayments and Loan EMIs.
4) Easy to avail of with long repayment schedules
Unlike Credit Cards that undergo stringent approval processes, Personal Loans are relatively hassle-free. Banks approve your request with minimal documentation requirements on Online Banking apps and disburse the amount within 24 hours. While we mostly use Personal Loans to purchase new products or services, repaying debts is the best way to use them. You become free of debts sooner without affecting your credit score while increasing your creditworthiness.
Conclusion
Applying for a Loan on the Banking app is a great option if you require funds urgently. Loan repayments also become comfortable, thanks to the long tenures. You can apply for them from home, your workplace, or anywhere else without restrictions. The process is paperless, quick, and does not require physical bank visits.
Personal Loan for TCS Employees: ✔ High loan amount ✔ Attractive interest rates ✔ Flexible repayment tenor ✔ Nominal documentation ✔ Simple application process ✔ Quick approval and disbursal
