5 Ways to Save Money Through a Personal Loan

There can be a host of reasons why individuals choose to get a loan. That said, the general mindset towards any loan equates to liability. However, not all loans are bad and if managed well, can be generally treated saviours during times of need.

Online personal loans can go a long way in saving you a lot of money in the long term. SMFG India Credit offers easy to apply for instant personal loans online at competitive interest rates to borrowers who may wish to restructure existing debt or perhaps make a big ticket purchase.

Typically, personal loans are unsecured which means that prospective applicants do not have to worry about putting up collateral in order to secure the loan. Personal loan rates for applicants with a favourable profile in terms of eligibility are relatively low, which means that they have the opportunity to save in the long term.

Take a look at these 5 ways on how personal loans can help save money.

1. Consolidation of Debt

You may have debts across a number of channels which can include medical loans, loans for down payment on car or even credit card debt. Moreover, if you have delayed on making any of these payments, it results in accruing penalties and extra charges on top of the high rate of interest that you are already paying. 

SMFG India Credit provides quick and instant personal loans online up to Rs. 25 lakhs* without any collateral that can help individuals to consolidate their debt with a single financial institution. At interest rates starting from as low as 11.99%, customers only need to pay a monthly EMI to a single loan provider instead of having to deal with multiple pay-outs every month of varying interest rates. This significantly helps to kickstart your savings that can be built into a sizable corpus over a period of time. 

Must Read: How to Consolidate Debt with a Personal Loan?

2. Improving Your Credit Score

Defaulting on any loan over a continuous time span impacts your credit rating. Financial institutions will brand such individuals as defaulters. Not only does the debt keep accruing but it also makes it very difficult for such individuals to get loans approved in the future.

Online personal loans from SMFG India Credit can come to the rescue as it can be availed at a much lower interest rate. Instead of defaulting on existing debt, the borrower can simply transfer the debt to a personal loan and keep track with the payments. This, in due course of time, will also help in the improvement of the individual’s credit score.

3. Smart Repayment Plans to Increase Savings

While an instant personal loan online offers you multiple repayment plans, the smart borrower will only select the plan that offers him or her the greatest benefits. Therefore, even if you have the option to avail a repayment period of 60 months, the borrower can repay it back in 24 months instead, if he or she has the financial flexibility to do so. In the long run, this saves the individual a lot of money that would have gone towards the interest component of the loan had it run for 5 years.

Alternatively, personal loans from SMFG India Credit can also be prepaid before the completion of its entire repayment schedule. However, the borrower may have to pay additional fees in order to avail of this benefit.

4. Freedom from Added Charges

Debts from credit cards are something that most people complain about. On top of the accruing debt with high interest rates comes a host of penalty charges in the form of late fees, etc. This keeps adding to the existing debt and makes it an upheaval task for the individual to ever get out of this vicious debt circle.

Availing online personal loans by SMFG India Credit can be used to service credit card fees and charges and possibly repay the accruing debt too. While personal loans may come with a small processing fee of their own, in the larger scheme of things, the percentage is probably insignificant. However, the individual should be careful and read the terms and agreement before getting the personal loan sanctioned.

This gives the individual not only freedom from these added charges but also helps to start saving as the individual does not have to pay exorbitant interest rates on unpaid credit card debt.

5. To Help Finance a One-Time Big Expense

Most people will make one of more big ticket purchases such as medical expenses, vacations, or a consumer good during their lifetime. Instead of spending your savings on such high value expenditures in a single shot, it makes sense to take out an instant personal loan online. Generally, personal loan rates are economical that translates into easy and affordable monthly instalments over a period of time.

Must Read: Here's How to Finance Medical Expenses with a Personal Loan!

In comparison to credit cards, personal loans with their interest rates work out to be a lot less financially intensive. Intelligent borrowers often opt for this practical route to purchase items that are expensive and help to keep their overall monthly expenditures in check.

The Personal Loan Application Process

It only needs a few simple steps to complete an instant personal loan online application with SMFG India Credit.

• Click on the “Apply now” button and select “Personal loans”. Select “Salaried” / Self employed” as applicable, and validate your mobile number with OTP.
• Fill up all relevant personal, employment and banking related information in the form
• Select the required loan amount and a convenient repayment tenure
• Upload soft copies of your personal loan documents. Some of these are:

All KYC documents to verify the following:

• Proof of identity – PAN card, voter’s ID, passport, driving license  
• Proof of address – Utility bills, passport, rental agreement  
• Proof of age  
• Passport size photographs  

Additional Documents For Salaried persons:

• The latest salary slips for 3 months
• Last six months bank statements
• Latest Form 16

Additional Documents Self-Employed:

• Last three years income tax returns
• Last 6 months bank statements
• Audited financials and business existence proof
• Click on “Submit” to finish.

If your profile matches our personal loan eligibility criteria, you will be instantly informed and given a tracking ID through which you can check the status of your application dynamically. Simultaneously, your application will be taken up for further processing.

Upon successful verification checks and acceptance of loan agreement, your loan gets approved and the funds get transferred to your account within 24 hours*.

If you have any questions or queries, you can reach out to SMFG India Credit by emailing them at  . Alternatively, you can call on their toll free number 1800 103 6001  or visit your nearest SMFG India Credit branch.