Monday, October 12, 2020

Upward trend of personal loans during the lockdown


All the people employed in business-like, mall, theater, schools, travels, aviation, hotels, and restaurants were adversely affected. Their business was not running and there was no profit which they could gain. Many Companies across the various segments implemented layoffs of their employees. They started terminating their employees as they don’t have sufficient funds to pay the employee’s monthly salary.Several private organizations were doing retrenchment. 


If any company was not terminating their employees then they were deducting the salary of their employees. They were claiming the incapacity of paying full wages to all the existing employees.


A huge number of salaried persons, self-employed and small traders were massively hit by the sudden strict lockdown. In the middle of the financial crisis, few fortunate people have saved money and have some savings. As no other option was left,  these people started using their savings to meet their daily needs. But how long saved money can be used to meet your daily needs.


Not every person has access to savings that they can live the same kind of life as earlier. Every adult individual has their liabilities, which they were coping with somehow. Now the saved funds have also vanished as they have any source of income to bear their daily expenses.


Earning less was one of the reasons for rising in the loan application. The second was a rise in cases of COVID 19, which leads the people to get admitted to the hospitals.Thus they urgently need money to pay the heavy bills of hospitals.


In such a miserable situation, people started looking for loans. Many times we feel uneasy about lending money from our relatives and friends. But circumstances compelled us to approach someone for a loan. In this situation, one can easily get attracted to personal loans.


The best option they can have was opting for personal loans. Indeed personal loan is meant for the situation where the borrower can use the fund in his financial crisis. This fund does not get allocated for a particular expense. The personal loan also allows you to repay the borrowed amount in the form of an easy monthly installment. 


Unlike car loans and home loans. Where car loan and home loan borrowed amount and can only be used for purchasing these two products. A personal loan has additional benefits of being an unsecured loan. The borrower does not require to keep any of his belonging as collateral/security


And for the genuine people who have never lent money from any of the organizations and hold good cibil scores. For such people, the personal loan was like a boon. They are eligible to get a lower personal loan interest rate.   


The second feature that attracts the personal loan borrower is its less time required for disbursal of loan. You can check the personal loan of Deutsche Bank Personal Loan. As in personal loan, the financing companies do not require much verification.  Thus during the lockdown, there was a gradual rise in the application of personal loan. It was a sorrowful circumstance that one can undergo. 

Also read this: How to Avail the Personal Loan


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