The advent of a secure and fast internet system has enabled India’s digital lending market to collect the maximum revenue over the past few years. As per reports, the digital lending sector of India will reach around USD350 billion by 2023.
The convenient contactless loan process and access to innovative financial products offered by the fintech companies have accelerated the growth. A mere personal loan application process takes a few minutes to complete. However, with this easy access, transparency has also improved. To keep up with that, apart from the application process, potential borrowers should know about the essential requirements related to this credit facility.
How to Avail of Personal Loan Finance Online?
Applicants need to follow the below-mentioned steps to personal loan apply using the online method:
Step 1: Individuals need to start the process by visiting the official website of their preferred lender.
Step 2: After navigating to the ‘Personal Loan’ tab, they will find an application form. It should be filled out with both personal and professional information.
Step 3: Along with the application form, one needs to submit substantial documents for verification. Once the verification procedure is complete, a company representative will contact the applicant to discuss the loan amount and tenor.
Step 4: Before selecting the repayment tenor, one must assess the equated monthly instalment amount using a personal interest calculator. This helps individuals borrow as per their repayment capacity and keep the EMI obligations under control.
Step 5: Once the financial institution finds the applicant is eligible enough to obtain the amount they are asking for, the loan will get sanctioned within 1-2 working days.
It is imperative to note that the processing time of a personal loan application might vary from one lender to another. Also, applicants need to meet certain eligibility criteria to get easy approval from financiers.
Eligibility Requirements of Personal Loans
Individuals need to meet the following parameters to get easy approval and a better interest rate for their personal loan:
- Employment status: Both salaried and self-employed individuals can apply for this
- Monthly income: It depends on an applicant’s city of residence
- Age: Applicants need to be between 21 and 67 years of age
- Credit score: The score should be at least 750 or above
Moreover, CIBIL score is extremely important for personal lending, as based on that; lenders get to assess their creditworthiness. Other than these, some financial institutions might have additional lender-specific eligibility requirements. Make sure to go through your chosen financier’s requirements list to get this clarification.
Apart from meeting the eligibility parameters, borrowers also need to keep the following documents handy before applying for a personal loan:
- Income proof (ITR documents, salary slips, business turnover details, etc.)
- Statement of bank account
- Proof of business vintage or employee ID card for salaried individuals
- KYC details
Whether an individual is availing of a big ticket or a small personal loan, such requirements need to be mandatorily met to avail of the benefits of this credit facility. However, apart from these, one should also keep some additional aspects in mind before getting such unsecured loans.
Things to Consider Before Availing of Personal Loans Online
With the arrival of financial websites and several personal loan apps, the process to apply for this credit advance has become easier. However, before rushing in, one must consider the following factors:
- Repayment methods: While thinking about obtaining a sizeable amount, borrowers must know the ways they can pay off the debt. Financiers provide several repayment options, such as part-payment foreclosure options, to make the process convenient. However, one must know about the associated charges for these facilities as well.
- Interest rates: Due to being an unsecured credit advance, the personal loan interest is slightly on the higher side. However, those meeting all lender-specific eligibility norms and having an impressive credit profile can negotiate a competitive rate.
- Pre-approved offers: Several NBFCs extend pre-approved offers on financial products such as personal loans, business loans, credit cards, etc. These offers streamline the loan application process and save time. To make use of that, individuals can check their pre-approved offers by entering their names and contact details.
From the personal loan application time to processing charges and borrower-friendly features, consider checking all of these before making a decision. Furthermore, individuals should also choose the right personal lender to get the best offers and maximize their savings.
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