Despite having all your expenses and fixed obligations planned out, a significant financial requirement may arise suddenly. You may find yourself in a fix if you need to meet this financial requirement on a priority basis. At first, you may consider using your savings and investments, but this means disturbing your long-term financial plan. Hence, you scout for viable alternatives to meet your financial requirements.
Applying for a Personal Loan is an incredible option to meet your financial requirements. You can borrow up to Rs. 40 lakh at a competitive Personal Loan interest rate. However, the best part about the Loan is that you need not provide collateral to secure the Loan amount. The bank solely considers your eligibility to extend the Loan offer.
You can repay them in Equated Monthly Instalments over a tenure. This ensures you do not feel burdened with the Loan repayment. You also have the option to make partial and complete pre-payments.
What is a Personal Loan Insurance?
When applying for a Personal Loan, you would have planned out its repayment. You may have considered an ideal financial situation to make this repayment plan. However, this situation may not always exist. This makes you incapable of repaying your Personal Loan. Does this mean you will default on the Loan repayment? That will cost you terribly in your future financial life as a repayment default permanently scars your credit score.
Having Personal Loan Insurance can be super handy in such situations. Such a policy extends financial coverage to manage Loan repayments in adverse conditions. For instance, you have lost your job, are suffering from a critical illness, have developed a disability, or facing death scenarios. In such situations, you may partially or entirely lose your repayment capacity. This stresses you and your loved ones on the remaining Loan repayment.
The Personal Loan Insurance helps here. It provides a reasonable amount to you or your loved ones to repay the Loan. This ensures the Loan is repaid without any financial struggle or defaulting.
What are the things to consider when applying for Personal Loan Insurance?
Although Personal Loan Insurance is not mandatory, you should consider buying one as it assures financial security for you and your loved ones. Here are things to consider when buying one:
- Coverages: Each Personal Loan Insurance has a unique coverage. Opting for a plan with extensive coverage is always better. It immunises you in a variety of situations.
- Costs: All Personal Loan Insurance Plans are differently priced. Consider opting for a plan that has a reasonable premium.
- Claim settlement processes: Amid the chaos, you would not want something that adds to it. Hence, consider opting for a plan with an easy claim settlement process.