The Advantages Of Taking Out A Loan

 If you are planning to avail a personal loan, keep in mind to choose the right platform. This is because choosing the right platform means availing the right advantages. Around a month back, I was looking for the same in order to complete my bedroom renovation here in Gurugram, Haryana.


What is a personal loan?

However, one of my colleagues guided me on how to avail such loans without traveling anywhere. It’s all about downloading the right application on your smartphone. 


It is a type of loan that people can obtain from a credit union, bank, or financial institution to meet their personal financial needs. This loan is a lump sum of money borrowed for a specific purpose, such as consolidating debts, paying for a wedding or event, financing a home renovation, etc. 


These are generally unsecured, which means that they do not require collateral like a car or a house. Instead, the lenders here evaluate the creditworthiness of the borrower based on factors such as credit history, income, debt-to-income ratio, and many others. The rate of interest charged on this small loan is generally higher than that of secured loans because of the higher risk to the lender. 




What are its advantages?

  • Flexible

As mentioned above, personal loans can be used for a variety of purposes, whether it’s consolidating high-interest debts, funding a home renovation, or covering any kind of medical/educational expense. The flexibility of such loans allows borrowers to address their specific financial needs. 

  • No Collateral

Personal loans are typically unsecured. This means you don’t have to offer any collateral as security for the loan. This is quite advantageous if you don’t want to put your valuable assets at risk. 

  • Instant access to funds

Personal loans often have a quick approval and disbursement process. Once approved, the funds are disbursed within a few business days. 

  • Debt Consolidation

This is another very important advantage that comes with such loans. So, if by any chance you have multiple high-interest debts, such as credit card balances or other loans, you can use this loan to consolidate them into a single monthly payment with a potentially lower interest rate. This simplifies your finances and saves you a lot of your hard-earned money on the interest charges. 

  • Improved Credit Score

This loan and timely payments go hand in hand. It undoubtedly impacts your credit score in a positive way as it demonstrates financial responsibility. Further, it clearly shows responsible borrowing behavior and adds to your credit mix, which can boost your creditworthiness over time. 

Which is the platform to avail these loans?


Believe me, there are tons of applications available on the internet. However, after thorough research and development, I came across an application called ‘Stashfin’. This was the only application available that offers such a loan without charging any interest rate. So, basically, you have to pay back the same amount you borrowed from them. 


  1. Download the application on your smartphone from the Play Store (Android) or App Store (iPhone)

  2. Sign up using your mobile number

  3. Add your personal details to check your credit limit

  4. Complete KYC and you are good to go!

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