Why EMI Free Personal Loan is Perfect Fit for the New Generation

A mandatory cup of coffee costs a millennial INR 150 a day. They invest most of their money on being comfortable, rather than creating a safety net, according to one of the studies conducted in 2018. Approximately 32.7 percent of a millennial ‘s salary is expended on food, 21.4 percent on clothes, and 11.2 percent on technology. Tentatively, an Indian millennial saves around 10 percent of its income. See also our recommendation on Complete Guide to Business loan in Indiahow short term loan help in an emergencyComplete Guide to Student Loan, and  Personal Loan.

How digital lenders have made finance easy:

Younger people are more spontaneous when it comes to spending, so respond at the offer to take low-cost EMIs / installments anytime and anywhere possible to make their lives simpler. And, if they can’t afford it to the maximum right away, they can manage it for a whole year of small payments. Over the year, Millennials prefer to spread the cost of paying their order.

Just a few clicks away, digital lenders have made Personal Loans. Millennials enjoy technology and this is what retail loans are using the digital lenders. The citizens of these days just need to fill out a few simple info, check their documents from cell phones, upload them and get the loan approved within 24-36 hours and disburse them. (Even Rs 10 Lakhs high-ticket loans).

The innovation in the design of loan products has changed the game! Loans are no more a burden on the pocket. Not only do they meet the requirements of millennials but they also, provide a medium to manage finances efficiently.

Let us look at this new kind of personal loan that fits the pocket of this new generation.

EMI free loan, a type of instant personal loan that requires a borrower to pay interest only on a monthly basis, and the principal balance may be paid every six months as bullet payments, reducing monthly outflow by 40%.

  • Bullet payment is calculated by dividing the loan balance into the loan term by the number of 6-month terms. For example, a Rs 1 Lakh loan and a 60-month term, the corresponding bullet sum will be Rs 10,000 every six months
  • When a bullet payment to the principal is made, the sum outstanding reduces the interest on the remaining outstanding amount.
  • EMI Free Loans is one of the most versatile lending programs as after 6 months one can prepay higher sums and cut monthly payments, i.e. interest outgoing, even more – without extra costs.

Why we suggest taking EMI Free Loan over Credit Cards?

Credit cards are the most popular type of credit used for purchases. Even if it is extremely convenient for the consumer, in fact, if their utilization and payment process is not well managed, this may lead to a debt trap kind of scenario. While credit cards have educated individuals around the world to overspend, in comparison with EMI Free Loans, one must determine the choice accordingly.

Monthly Instalment INR 3000-5000 / lakh INR 1200-1500 / lakh
Outstanding Payment Within 30-50 days of utilization Monthly Interest Payment, Principal Payment tenure can be 6 – 60 months
Rate of Interest Usually, 3-5%, Varies from one bank to another 1.5%
Maintenance Charges Annual maintenance charges No maintenance charges

Advantages of choosing EMI Free Loan:

No prepayment charges:

After the initial six months, there are no prepaid charges, which means one can repay the amount of the loan as and when there is a higher cash inflow. Most traditional financial institutions impose pre-closure / prepayment charges of 3-5 percent.

Minimum Documentation & Online process:

Minimum paperwork for loan processing is needed, and all records are uploaded online.

Quick Disbursement:

The method is relatively quick and fast, credit assessment is performed almost immediately with the help of algorithms. When the records have been submitted and then all the checks have been carried back, the loan is usually paid out within 24-36 hours

Loan Customization:

The borrower is allowed to customize their loans from INR 1 Lakh to INR 10 Lakhs depending on individual requirements. Tenure extends from 6 months to 60 months. It allows its consumers the right to select their term, loan volume, and repayment schedule as per their cash flow.

Final Thoughts:

EMI Free Personal Loan is perfect fit for the new generation because there is no pre-payment charges charges when applying for the personal loan. And there are minimum documentation and less paperwork required for the processing.

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