Overview
A private loan is a personal loan which you get instantly from private lenders. These loans can be termed as private personal loans. They are handy for circumstances when you need an urgent infusion of money. These loans are disbursed as early as 24 hours if everything goes right.
Private loans can be used to fund a dream vacation, gift a car to your parents, do a home renovation, etc. Business owners can use these loans as working capital to run the operations or buy new equipment.
Private student loans with a co-signer are also available in the financial market to help you with your fee if you are a student. But why take private personal loans and no other types of loans? Keep reading to find out the answer!
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6 Reasons to Apply for Private Loans
Private loans are favourite of borrowers because of these 6 beneficial features.
- Interest Rates
You can get a private loan with a favourable fixed or variable interest rate if you maintain a good credit score. Your interest rates can be lower than personal loans with a highly rated credit history.
- Quick Disbursements
Thanks to the digitisation of financial sectors, various apps and online lines of credit instantly approve loans. And private loans are easier to approve because of simple eligibility criteria. You can get quick money through private loans online in 1 to 24 hours.
- Loan Available With Co-signer
Sometimes, you don’t have a high credit score due to a lack of credit cards and loans in your name. However, you can get a private loan with a low credit score. You only need a co-signer with a solid score.
But it is possible only if there is no default of payment in your credit history. Generally, private student loans are taken with a co-signer. But remember, a university can’t act as your co-signer.
- Flexible Repayment Terms
The repayment terms of a private loan are mostly friendly. You can get flexible repayment tenure of up to 5 years. That way, you don’t need to pay insane amounts in your EMI to close the loan. Instead, you can pay in a longer duration with an easy EMI that fits your budget. Learn more about financial planning with these amazing and helpful tips.
- Easier to Get Than a Personal Loan
Banks and financial institutes take more than a week to process the loan when you apply for personal loans. And after that duration, there’s no guarantee that the loan will get approved only. It may get rejected because of a credit score or some discrepancy in the document.
On the contrary, a private loan is generally processed online only, which can be done within 24 hours. And you can get a private loan with an average credit score and minimum document. This point will be elaborated on in the upcoming section.
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- Minimum Documentation
A personal loan from private lenders doesn’t demand a plethora of documents. The basic proofs you need to submit are address proof, ID proof, and income proof. And there are various documents (depending on the individual lender’s policy) that are acceptable as these proofs.
Conclusion
It’s incredibly easy to get private loans. The application process is simple, eligibility criteria are achievable, the documents required are minimal, and other conventional loans get approved with lightning speed. So what are you waiting for! Apply for a private loan and resolve your financial crunch.
Author bio:
Tanvi Kaushik specializes in Content Marketing and works with the Digital Team at KreditBee – India’s fastest personal loan platform where self-employed and salaried professionals can easily avail of personal loans in just a few minutes when in need of quick funds. Tanvi writes to-the-point articles on personal finance and budgeting which are truly appreciated by her readers. She is committed to making money matters easy to understand even for the layman. Her commitment to her work doesn’t stop her from pursuing her hobbies of hiking, trekking and going on adventurous trips.