Earlier, applying for a loan was extremely difficult since you had to go through a slew of processes, and documentation and stand in a long queue for hours. However, with innovations, the banking sector has made significant progress. Now you can apply for an online personal loan through your smart device. The procedure takes a few minutes to complete, and post-application, you have to wait for your loan to get sanctioned and the amount to get deposited in your account.
Personal loans are available at a reasonably low-interest rate and can be used for multiple purposes. Moreover, the personal loan documents required are minimal, with a simple application procedure to ensure that you do not encounter any difficulties while applying for a loan.
A personal loan has the following features and benefits:
- No need for collateral: You don’t need to submit any collateral to obtain a personal loan. The loan is only accepted based on your credibility, which is determined by your credit history, income, repayment ability, employer reputation, and other factors.
- Multipurpose loans: personal loans are versatile, meaning you can use them for a variety of purposes like paying medical expenses, home renovation, debt consolidation, travelling, and so on.
- Flexible Repayment Option: One of the best things about personal loans is that once you apply for them, you can repay the loan amount in flexible terms ranging from 12 to 60 months.
- Minimal Documentation: You can apply for an online personal loan or in person, depending on your preference. Essential documentation that lenders often want from applicants includes evidence of identification, proof of address, and proof of income.
- Speedy Disbursal: Once the application is approved, personal loans can be disbursed within a few hours. If you have a pre-approved loan offer, the processing time might be as quick as a few minutes.
- Variable Loan Amount: The amount of a personal loan that is approved is determined by an individual’s repayment history, monthly income, age, occupation, employer reputation, and other variables. Taking all these details into account, you can get up to 5 lakhs post-approval of the loan.
Your personal loan interest rate is determined by several criteria, including your age, income stability, number of years of work experience, credit score, previous EMIs, repayment capability, and loan tenure. Apart from that, your loan interest is calculated in two methods, namely, the flat interest rate method and the reducing balance method.
The Personal Loan EMI Calculator is a useful online automated tool for calculating your EMI. It’s really simple to use. You only need to enter the loan amount, interest rate, and loan term. The result will be provided by the online calculator in a fraction of a second. You can use this tool to calculate how much you will have to pay each month during your payback period. You can also adjust the loan tenure and amount to obtain different EMIs and determine which alternative is best for you.
The following are the eligibility requirements for a personal loan:
- Age: 18 to 58 years
- Citizenship: India
- Occupation: Both self-employed and salaried
- Minimum Income: ₹15000 per month
- Work Experience: Six months of employment for salaried individuals and at least two years of experience in the present firm.
Personal loan documents required while applying for a personal loan are as follows:
- Filled out application form and passport size photo
- Identity proof – Passport/ Driver’s License/ PAN Card/ Aadhaar Card (any one)
- Residence proof – Passport/ Driver’s License/ Ration Card/ Utility Bill/ Aadhaar Card (any one)
- Job Continuity Proof – Letter of Employment from Existing Employer and experience certificate from prior employer
- Income Proof (for salaried individuals) – Form 16, salary slip for the last six months and bank account statement of the previous six months
- Income Proof (for self-employed individuals) – Previous six months’ bank statements and ITR for the last two consecutive years
- Residential Ownership Proof (mandatory for salaried individuals) – Property Documents/ Maintenance Bill/ Electricity Bill
- Office Address Proof (mandatory for self-employed individuals) – Property Documents/ Rent Agreement/ Maintenance Bill/ Utility Bill
Follow the steps given below for an online personal loan application.
- Visit the official website of your lender.
- Browse the application webpage and fill out the application form there.
- Submit the necessary documents online.
- Once you finish the application procedure, a personal loan staff from your lending institute will contact you.
- Now all you have to do is relax and wait for the funds to arrive in your bank account.
It’s critical to gather all of the relevant information before applying for an online personal loan. You should also ensure that you have all of the personal loan documents required for application with you for a smooth loan procedure. Furthermore, you must have a strong plan for repaying the loan following your agreement with the lender so that you don’t have to deal with any penalties in the future for non-payment of EMI.