Personal loan can be a better option in cash crunch, know what are its benefits

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SBI and Punjab National Bank have decided not to charge process fees on personal loans. If your credit score is good then you can get loan easily and cheaply. There are many benefits of taking a personal loan. Here we are telling you about these benefits.

Employed people often need money on big occasions in life. Whether it is the marriage of a boy and a girl, someone’s illness or a big event. In such a situation, it is better to take a personal loan from a person bank than taking a loan from a person at expensive interest. Many people are stuck in financial crisis due to Corona epidemic. In this situation also personal loan can be a better option.

SBI and Punjab National Bank have decided not to charge processing fees on personal loans. If your credit score is good then you can get loan easily and cheaply. There are many benefits of taking a personal loan. Here we are telling you about these benefits.

No Security Required Personal loan is an unsecured loan and hence the applicant does not have to provide any security for the loan. Banks generally grant these loans based on the borrower’s income, cash-flow, credit score and repayment capacity. On this basis, the loan amount and interest rate are decided. Good repayment capacity, good credit score and income enables the applicant to get the loan at low interest.

You can use the personal loan money according to your need. If you need money to meet your medical expenses or other needs during the Corona period, then you can fulfill these needs by taking a personal loan. The personal loan amount is directly disbursed to the borrower. It is not necessary to state the purpose of taking a personal loan.

Loan Tenure Personal loans come with flexible repayment tenures that usually range between 12 months to 60 months. In such a situation, you can choose the tenure for which you want to take the loan according to your need. Personal loans also come with pre-payment and pre-closure charges.

Loan is easily available when you get pre-approved If you have a good credit score then the bank can offer you a pre-approved personal loan. In this, instant loan is available with minimum paper work. The loan application can be done through the link provided by the bank or by logging in to online banking. Once accepted by you, the amount is directly credited to your bank account within a few minutes. You get this loan easily and at low interest rate.

Can avail tax exemption Personal loan is not taxed, as the loan amount is not considered as income, but keep in mind that you have taken the loan from a legal source like a bank or NBFC. However, to take advantage of the tax exemption on the loan, you will have to show several documents. These include documents like expenditure voucher, bank certificate, sanction letter and auditor’s letter etc.

Punjab National Bank and SBI Waive Process FeePunjab National Bank has decided not to charge processing fee on products like Home Loan, Vehicle Loan, My Property Loan, Personal Loan, Pension Loan and Gold Loan till December 31. SBI will also not charge processing fees on home, personal, car and gold loans till September 14.