Direct Loan Snneha Lukka october 9, 2019
What is Direct Loan?
Direct loans are loans provided by a lender to a borrower instead of through a third-party. Direct lenders include banks and non-banking financial companies (NBFCs). Small banks can also provide direct loans, but they are likely to offer them via third-party lenders with more resources.
Uses of Direct Loans
Direct loans have a multitude of use cases as they are essentially personal loans. Below are just a few of the ways they can be used: ● Unexpected expenses ● High utility bills ● Shopping ● Auto loan ● Medical emergency ● Home repairs and maintenance ● Education expenses/ course fees ● Travel and vacation ● Weddings ● Family functions ● Consumer durable purchases (fridge, washing machine, etc) ● Vehicle maintenance and repair ● Credit card payments ● Debt consolidation
Benefits of Direct Loans
Since direct loans eliminate the middleman, they are generally less expensive than other types of loans on the market. Below are some of the benefits of direct loans. ● Quick approval ● Fast disbursal ● Minimal documents ● Affordable interest rate ● No collateral required ● Multiple uses ● Flexible repayment tenure
Eligibility for Direct Loans
● Ages 22- 58 ● Monthly Income of Rs. 15,000 or more ● Employment type (salaried or self-employed) ● CIBIL score above 625 ● Location