Personal Loan – Advantages and Disadvantages

A personal loan is a customer loan authorized for personal use. You may need to buy something at any

phase in your life which you cannot afford so a personal loan is very beneficial for anyone. Personal loan

is not an important thing in the sight of those people who are very rich. It is an essential thing for only

those people who are not able to fulfill their dreams so in order to make a home, to purchase a car or to

start a business anyone can take loan. It depends upon your own choice.

Loan is not a gift. You have to pay it back. Loans are provided by money lenders. There are many sources

from which you can get loans. Banks are playing their part in giving loans to you. You have to just submit

an application form to get a loan. You can get money as much as you can and pay through monthly

installments. Once your application is approved than it is directly transferred to your account and you

can withdraw cash at the time of your need. So it is a very easy method to get a loan

There are many advantages and disadvantages of personal loans which are as under:

Advantages:

*

You can fulfill all your dreams through these loans.

*

They are very appropriate in buying those things which require immediate payments.

*

You can take loan for a longer period of time depending upon your needs.

*

You do not need any guarantor to avail this facility because it is an unsecured loan.

*

You do not need to submit large number of documents in order to get a loan.

*

CNIC and a bank statement are the only requirements to get loan.

Disadvantages:

* Loan is a long term agreement. You have to save money from your income to pay it back on

monthly basis. So the pressure on an individual is the main disadvantage.

* Facing a penalty is also a main disadvantage of personal loan. So you have to pay monthly

installments when they are due.

* Having a charge of giving a lump sum repayment to pay back a loan is also another

disadvantage.

Finally, personal loans are very helpful in achieving those things which you want to achieve. So, those

persons who are not rich and want to fulfill their dreams, personal loans are here to help them at the

time of their needs.