A 2-Minute Guide to Personal Loans
In this short article we try to address the What, When, Why, Which of Personal Loan queries that you may have.
When should I avail of a Personal Loan?
- Consumption Needs: Purchase of Gadgets, Family Events (like marriage, birthday functions, etc), medical emergencies, travel, etc
- Short Term Investment Needs: School fees, Tuition fees, Upskilling course programs, Professional Degree/Diploma programs, Home Renovation, Own Contribution for Home Purchase, etc.
Mystro personal loans are customized to meet such varied needs of customers. Please read our article on :
1. Pitfalls of availing Personal Loans?
2. Breaking the Debt trap on account of excess usage of Personal Loans?Why not Credit Cards instead of Personal Loans?
- Credit Cards are meant for fulfilling impulse purchase at a retail store.
- The Credit period offered is a maximum of 30 days.
- Credit Cards can offer you to break your bill amount into EMIs, however, you may pay exorbitant costs for the same:
- Cost of the switch to an EMI loan (which is typically 5% or higher and mostly hidden charge kind of nature, as most of the customers do not realize paying this)
- Rate of Interest is around 3.5% - 4% per month, i.e. 42%- 48% per year which much higher than our Personal Loan products
Personal loans are best suited for meeting your higher expenses that you may like to pay back in EMIs.
What is the cost of Personal Loans?
Your cost of the loan is the total interest cost and loan-related transaction fee that you pay. Typically the cost of the loan in interest rate terms varies from 15% to 36% per annum. However, this rate is on a
reducing balance basis. Your actual annual cost of the loan would be around 12%-22% per
annum. The cost of loans is a factor of your overall credit profile and financial credibility.
Indian Nationals of 21 years of age or above.Who is Eligible for Personal Loans?
Our Loans are not limited to any group of people. There are no prerequisite terms about who is eligible or who is not, it all depends upon your Income profile, credit track record (if any) and a few other demographic information like location, age, etc. Please note, we also provide loans to New to Credit, hence if you have recently started earning and looking to avail a new credit line or build your credit profile, do apply with us
Why Mystro, what’s different with Mystro Personal loans?
Firstly, transparency and convenience of service is our core objective. No Hidden Charges and all the transaction-related costs are available on the mobile app as well as loan documentation. Our Technology-enabled infrastructure lets customers apply, avail, track and repay loans at their convenience. Key reasons why Mystro is the safe and the best place for your loan requirement:
- We are an RBI licensed NBFC and directly provide loans to the customer, there are no intermediaries
- Fast and quick decision making
- All processes are Digital and Paperless
- Transparent and ethical
Things you should be aware of while availing Personal Loans:
- Choose your Loan partner as you would select for other Financial Services decisions. Yes, there are a lot of quick, easy instant loan options. But what most customers do not realize are the following:
- What do they end up paying back as interest and other costs for such instant loans? Sometimes you are in a hurry to get the loan and forget to check the fine print (detailed terms and conditions of such loans)?
- Can you trust your financial partner for future loan-related solutions when you need it?
We share key details of the loan on the app so that they are well aware of what they are availing. We advise all customers to read through the basic terms and conditions thoroughly with us and others so that they are in good stead.
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