What is the benefit of personal loan insurance?

At present, applying for personal loan insurance has become comparatively easy especially for salaried professionals, retired individuals, and self-employed people. However, things might become complicated while encountering setbacks like unemployment, unexpected accidental death to repay the personal loan. Therefore, personal loan insurance protection loans introduced by ICICI Pru Loan Protect Plus are one of the ideal solutions to cover expenses.

It does not matter whether it is a property loan or a personal loan; it is highly recommended to procure a loan insurance plan to safeguard a borrower’s monthly loan payment in case of emergencies. Some of the renowned banks like ICICI Pru Loan Protect Plus are providing personal loan insurance to assist borrowers in repaying home loans, vehicle loans, and so on.

Now we shall discuss some of the potential benefits of personal loan insurance are as follows:–

  • Quite a few banks extend personal loans along with a loan insurance cover. However, it is up to the borrower to decide whether to purchase the policy cover or reject them.
  • Personal loan insurance is capable of covering the outstanding loan of a borrower and safeguarding the monthly loan payments of an individual.
  • Another major highlight concerning personal loan insurance is that it will not burden the family with an unexpected financial obligation to cover the monthly EMI.
  • Certain loan protection insurance plans offer tax benefits as per Section 80C
  • There are personal loan insurance plans that contain money-back plans wherein buyers obtain a lump sum amount at the end of the plan.
  • Seamless loan processing: — The application procedures are quick and smooth by accessing the official website of ICICI bank. There are alternative ways to apply for personal loan insurance via Net banking, ATM, or by paying a visit to your nearest branch.
  • The documentation process of a financial institution is less as compared to the bank.
  • Approval of personal loan insurance would take just a few minutes
  • Customers do have the liberty to avail themselves of personal loan insurance to write off their debts, purchase an electronic gadget, property or car, world tour, etc.
  • There is no need to attach collateral security including property and shares as against the loan.
  • Unlike other types of loans, processing time and documentation works are very low. However, applicants are supposed to attach supporting documents such as ID cards, address proof, and monthly income statements.
  • Budget-friendly repayment tenure: — Here at ICICI bank, they provide flexible repayment tenure. The applicants do have the liberty to decide on a suitable tenure thereby enabling them to optimize the monthly budget.

Apart from the above mentioned, there are other benefits associated with personal loan insurance

  • Borrowers will be able to improve their credit score if they pay monthly EMI within a stipulated period.
  • Lenders provide a huge amount to enable the borrowers in carrying out big purchases
  • A single personal loan would let them streamline the budget by covering credit card balances and individual loans. This helps lower the rate of interest
  • Personal loans are indeed one of the best options since they are considered flexible and useful in covering vehicle repair expenses. Apart from that, it is helpful for home improvement projects, organizing auspicious events like wedding
  • ICICI offers a competitive rate for highly qualified applicants.
  • Unlike other banks, the ICICI offers a flexible borrowing limit. As a result, a personal loan could be tailored to cater to the needs and requirements of a borrower.
  • A personal loan provides instant access to money especially when people are struggling to repair a vehicle or traveling long distances.

But it is highly recommended to carry out comprehensive research regarding the loan application process by visiting the official websites of each financial institution. The overall time taken for the personal loan to get approved, documentation procedures, and transferring the loan amount to your account might vary based on the size of the loan

Experts suggest choosing authentic personal loan insurance that covers everything including unemployment, disability, and death. Pay close attention to the nature and amount of loan included in the insurance. What are the modes of payments offered by the respective insurance company?

Quite a few insurance companies deal with home loans and personal loans while some do not cover loans when it exceeds the threshold. It is advisable to check and verify the terms and conditions provided by an insurance company.

Related Articles: Looking for 1 Lakhs Rupees Personal Loan – Apply Now

Conclusion

ICICI bank is an authentic financial institution in India that provides personal loan insurance to applicants with flexible repayment tenure. Accessing the official website of ICICI bank provides a brief overview of their terms and conditions regarding documentation paperwork and the time taken for the personal loan insurance to get approved.

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