A personal loan can be a quick credit help in an emergency or a cash crunch since no reasons to avail one. Almost every lender is now available online, and you can quickly access a personal loan anytime. While this can be an easily accessible credit help, it’s important to keep a watch on the hidden costs it brings in.
Check out the hidden costs of personal loans.
5 Hidden Costs of Personal Loans
1. Prepayment charges:
2. Origination fees:
3. Application fees:
4. Late fees:
5. Loan insurance:
How to Stay Away from Hidden Costs of Personal Loans
As a salaried employee, going for a line of credit from FlexSalary is always a great alternative for credit instead of a personal loan. FlexSalary extends a credit line of up to Rs. 2,00,000 at a reasonable interest rate with zero hidden charges. Not just the interest rate is reasonable but being a credit line, interest is charged only on the funds that you borrow, and not on the total funds approved to you.
Following are the five reasons that make a Line of Credit from FlexSalary the best.
- No hidden charges are taken, and only a one-time processing fee is charged.
- Flexible payback options are provided. As there is no fixed EMI, payments are easier to manage.
- It comes with a flexible tenure of 3-36 months during which you can pay off your dues anytime without any late payment charges.
- No prepayment charges are taken on the FlexSalary credit line even after a one-time payment before the tenure is over. No additional interest is charged.
- This is a perfect ready credit facility for any emergency or unprecedented expense.
The FlexSalary application process is easy and is 100% online. The documentation is very minimal, and online KYC is done for verification. Even with a salary of Rs. 8,000/ month, you are qualified to apply for a line of credit at FlexSalary. No collateral is needed as well, making it the perfect substitute for a personal loan.