Banks and non-banking financial institutions (NBFCs) provide personal loans as a credit option to meet consumers’ need for personal finance. A lender will lend money to clients for a predetermined amount of time at a certain interest rate. Borrowers can spend the money for any of their needs. Moreover, no collateral of any type is required to obtain personal loans. So, they are very helpful during an emergency. Let’s explore how you apply for a personal loan online.
Features of Online Personal Loans
Before delving into the application process, let’s take a quick overview of the features of a personal loan.
- Faster disbursement: Loans are approved and disbursed rapidly, often within minutes.
- Simple eligibility requirements: People may apply for the loan easily because the requirements are more flexible than for traditional loans.
- Easy repayment terms: Repayment terms are straightforward and reasonable due to the various loan tenures available.
- Complete online application procedure: Customers can apply for a personal loan conveniently as the application process is completely online.
- Competitive interest rates: Instant personal loan is a cost-effective choice for anyone in need of financial support. They usually have reasonable interest rates.
- Collateral-free: Personal loans don’t need collateral. Therefore, anyone without any assets can apply for one.
- Digital process: All loan transactions, including application and repayment, are online. There is no necessity for in-person visits to the financial institutions.
Eligibility Criteria and Documents Required
Anyone who satisfies the requirements listed below is eligible to apply online for personal loans.
- Nationality: Indian
- Age: 21 years to 80 years
- CIBIL score: 685 or higher
- KYC documents: Aadhaar/ passport/ voter’s ID/ driving license// NREGA job card
- PAN card
- Employee ID
- Salary slips of the last 3 months
- Bank account statements for the last 3 months
Steps to Apply for Personal Loans
Applying for a personal loan is easier than other types of loans. Lenders are not required to verify the details of any security or collateral. The online application and the less paperwork further simplify the entire procedure.
Step 1: Visit the lender’s website
Applying for a personal loan online requires logging into your trusted lender’s website or mobile app.
Step 2: Fill out the application
To use the online application form, simply click on “Apply Online.” Next, complete the fields on the form and enter the One-time password (OTP) that you will get on your phone.
Step 3: Send in your files
Complete the procedure of loan verification by providing the relevant documents.
Step 4: Enter the essential details
Choose the loan amount you want to borrow after completing the Know Your Customer (KYC) details.
Step 5: Send in your application
Fill up and submit your loan application.
Step 6: Loan Approval
The lender will approve your personal loan application after due verification. A representative will contact you once the procedure is finished. He shall provide further information on loan approval and transfer of the loan amount.
Tips to Apply for Personal Loans
Let’s now take a look at some useful tips to make the process of obtaining a personal loan easier.
Verify Your Credit Score
Your credit score shows your eligibility for borrowing. To grant personal loans, banks and non-bank financial institutions require a reasonable credit score. If you have a poor credit score, postpone applying for a personal loan until your credit score has improved.
Compare different loan offers
Several firms are offering personal loans these days. These include banks, NBFCs, online fintech lenders, etc. Each of them has different eligibility criteria, interest rates, repayment tenures, and other terms and conditions. Thus, before applying, look over a few offers and select the one that best suits your needs.
Avoid submitting more than one loan application at once
Many individuals believe that it is a good idea to apply for loans with many lenders to quickly get a loan. But it might affect your credit score. So, rather than increasing the chances of approval, multiple loan applications reduce it.
A personal loan can assist you with several requirements, such as buying consumer durables, wedding expenses, vacation, or medical bills. Today you can get personal loans online. You can download a personal loan app and easily apply for your loan. Many firms are offering online personal loans. You can apply with a reputed one like Fibe. You just have to visit Fibe ’s website or download the app. Fill out the required information and get it approved instantly. The money shall be disbursed in a very short time upon approval.