With banks and non-banking finance companies (NBFCs) offering instant personal loans in just a few clicks, availing an unsecured personal loan has become very easy in recent times. The online application has made the overall process easy and quick, and the borrower can get the money in a few hours, if not in minutes.
Personal loans are a blessing during an emergency or a financial crisis or any medical need. It is one of the best options to get funds without much hassle, especially with a lower interest rate when compared with other instant credit options like a credit card. According to industry data, an increasing number of people are now opting for personal loans even for big-ticket purchases.
Having said that, despite its convenience, a loan which is a financial commitment needs to be repaid timely. Otherwise, it affects the borrower’s credit report and impacts his/her credit score negatively. To help with that, borrowers can take the help of an online personal loan calculator. It gives information about one’s personal loan EMI and other important factors regarding the loan.
To apply for a personal loan online the documents that are required are usually KYC documents and income documentation. The online application for personal loans is similar with most banks, however, the approval time differs.
Approval time of a loan varies from lender to lender. With some NBFCs it takes a few hours, whereas with banks it can take anywhere between a few days to a few weeks depending on the type of lender and their lending policy. Pre-approved loans from banks, on the other hand, are often dispersed in a few minutes.
Here are a few things to keep in mind while applying for a personal loan online:
Evaluate and find out the exact loan amount you need and then apply for a personal loan.
Additionally, take into account any existing loan or credit card dues that you may currently be repaying. This will determine the EMI you can afford to repay monthly.
Find out with the bank or check the bank’s eligibility conditions to see if your qualify for the loan or not. (It takes into account income and employment status)
Check with the bank on the interest rate offered by them. (Compare the interest rate of banks and other online lenders)
If you are opting for a loan from your own bank, it will be easier for you to apply for the loan through the bank’s mobile app or through internet banking.
Here is how you can apply for a loan online;
Apply for the loan through the personal loan app or through internet banking. If you are a new customer, download the application from the lender’s website.
With the application form, for verification, provide documents for KYC, along with address proof and income proof.
You will also be asked to pay the processing charges. You can pay that digitally or through a cheque.
Once the bank verifies the documents, the loan will be sanctioned and the amount will be approved based on your eligibility.
After confirming and signing the agreement with the lender, the funds will be disbursed to your account.
Applying for a personal loan is made simple with the help of personal loan apps available in the market. You can complete the entire application to the disbursal process at the comfort of your home!
