No one likes to gets stuck in a financial crisis. These situations come and hit you out of the blue. During any predicament, a person will look for an easy way out. When you look for a credit option in the credit market, all sorts of options are available from secured to unsecured and many more.
Usually, people think of getting a credit card and they do get it. The point that most of us miss out is credit cards come along with sky-high interest rates. Credit cards do provide you with all the comfort and convenience. One swipe and you can have the funds you need. The credit cards may lead you to a debt trap. When you use a credit card the amount that you borrow will have to be repaid along with a high-interest cost. The interest levied on a credit card can go as high as 40% per annum and sometimes it is even beyond that. Not to mention the costs that you have to bear to maintain a credit card. Only those who have a good credit score are likely to get a credit card.
Whereas, at the same time if you get a personal loan, the interest rates are lower than the credit cards. A personal loan is a facility that you can avail of without any collateral. Only if you want to get a loan by providing security then you have that option as well. The banks and non-banking financial companies provide the facility of personal loans to almost all individuals and entities. If you have a good credit score then you can have the benefit of low personal loan interest rate and if you have a low credit score then you can involve a co-applicant. Including a co-applicant can help you get a personal loan of a larger amount up to maximum of Rs 1 crore. Both salaried and self-employed individuals and entities can get a personal loan without any troublesome process.
You can pay back the loan amount and the personal loan interest in installments (equated monthly installments) over the tenure of the personal loan. The tenure of a personal loan can go up to 60 months (5 years). The criteria for a personal loan is not as complex as it is for a credit card. Just like a credit card, you can apply for a personal loan while sitting at home.
HDFC personal loan policy is available online. The application procedure of the HDFC personal loan is as simple as that of getting any other form of credit. The personal loan interest rate on funds acquired under HDFC personal loan policy starts from 10.75% per annum.
Adversities may force you to take prompt decisions but the decisions you make should be well thought of. Rather than looking for an easy way out, it would be beneficial to calm down and take a minute. Studying and comparing your options will help you go for a solution which will help you in long term and will be appropriate for your needs.