The old method of conducting business required borrowers to visit the nearest branch of financial institutions for their services. Digitalisation in financial services has enabled instant online loan processes with minimal effort and attractive interest rates. Below are a few simple steps to apply for an online personal loan.
Compare the Interest rates
Institutions offer varied interest rates with a few basis points difference as per the RBI (Reserve Bank of India) guidelines. Higher interest rates on personal loans result in higher interest payments until maturity. Applicants must ensure they explore and fetch the lowest interest offering institutions to pay comparably smaller instalments.
Check Loan Eligibility
The eligibility to apply for personal loans differ as per the institutional policies. Personal loan eligibility is quite relaxed compared to large property and home loans. The most common criteria for borrowers are age, place of residence, income proof, and citizenship. Personal loans come with a unique facility of no-end use restrictions.
Pre-calculate Loan EMIs
After the personal loan eligibility is fulfilled, applicants must calculate their total repayment amounts until loan maturity. The online EMI calculators by institutions help borrowers evaluate their monthly instalments based on interest rates and principal loan amounts. Applicants must never forget, the longer the tenure, the higher the total repayment amount.
Document Submission
Soft copies of personal loan documents required are Pan cards, Aadhar cards, bank statements, salary slips, and income proofs. These personal loan documents required must be handy with the applicant in digital format for quick submissions. The system-based application process accepts digital copies of original documents without customers entering the institution’s premises.
Verification and Approval
Once the documents are accepted successfully following a mandatory KYC verification, the application is forwarded for the final approval of the institution. The applicant's information is reviewed repeatedly to avoid default advances. After successful application approval, the loan amount is disbursed instantly to the borrower’s account by the lending institution.
Also Read: Availing of Finance Loan in India
