What is the benefit of a loan?
Flexibility: A bank loan allows one to repay as per convenience as long as the instalments are regular and timely. Unlike an overdraft where all the credit is deducted in go. Or a consumer credit card where the maximum limit cannot be utilised in one go.
What is the best reason to say you need a personal loan?
One of the best reasons to get a personal loan is to consolidate other existing debts. Let's say you have a few existing debts to your name—student loans, credit card debt, etc. —and are having trouble making payments. A debt consolidation loan is a type of personal loan that can yield two core benefits.
Is it good to take a personal loan?
Getting a personal loan is a good idea if you have a stable income and a good credit score because you will then be offered a low rate of interest. On the contrary, with an unstable job and a low credit score, the interest rate offered to you will be comparatively higher.
What are the disadvantages of a personal loan?
Cons of a Personal LoanCon: Possible Fees. You may be required to pay certain fees when you take out a personal loan, including: ... Con: Higher Interest Rates. ... Con: Taking on More Debt. ... Con: Credit Consequences. ... Con: Predictable Monthly Payments.