Gone are the days when you had to stand in a long queue at the bank to apply for a personal loan. With the advancement of technology, you can now apply personal loans online with instant approval and a hassle-free application procedure. Now, you can receive a personal loan while sitting at home in front of your device screen.
The application procedure is simple to understand and follow. You may discover everything about personal loans, such as eligibility requirements, required papers, personal loan rate of interest, and EMI amount, via an app or on the lender’s website. You are also given options such as a personal loan interest calculator and an EMI calculator, where you simply need to enter your loan amount, interest rate, and loan tenure. Continue reading for more information on the online personal loan application procedure and interest rate.
What Is a Personal Loan and What Are Its Benefits?
A personal loan is an unsecured loan in which you can request funds without having to put up any collateral. These loans have low-interest rates, require little documentation, and are approved quickly. You may use these finances to satisfy your monetary requirements, such as buying a car, improving your house, and supporting your education, vacations, weddings, and medical expenses. Personal loans are in considerable demand these days, and various lending institutions provide them at varying rates of interest. This is because a personal loan interest rate is influenced by many factors. So, do thorough research before you apply for one.
Benefits of personal loan:
A personal loan has the following advantages:
- They are flexible and can be used for any purpose.
- A personal loan is approved instantly.
- Personal loans need no collateral.
- It is an excellent way of building up your credit score.
- A personal loan is easily available with minimum documentation.
How to Apply for a Personal Loan Online?
Nowadays you get the benefit of applying for a personal loan while sitting at home. Though you always have the option to visit a DSA or nearby branch of your lending institute. But, applying for a personal loan online is less tedious and quicker. Here’s a guide to apply personal loan online:
Application for a personal loan via an app:
- Download the application from the play store.
- Choose the loan amount and the amount of EMI you prefer.
- Input your details like name, income, the purpose of loan and PAN card number.
- Finish the KYC procedure.
- Enter your bank account details in which you want the funds.
- Wait for real-time approval of your loan.
- Sign the eMandate and loan agreement digitally.
- Finally, the amount of the loan will get credited to your account.
Application for a personal loan through an online website:
- Visit the website of the lending institution in your browser.
- Fill in all of the details requested on the application form.
- Upload all the necessary documents.
- After completing the application process, someone from the personal loan team will contact you.
- After you have finished contacting the personal loan team, simply wait for the cash to appear in your bank account.
What Is the Personal Loan Rate of Interest?
The personal loan interest rate varies from one lender to another. Your income, residential status, relationship with the lender, employment level and credit history play a major role in determining them. The interest rate can go up to 25%, depending upon these factors. The better profile you have on the application form, the lower will be the rate of interest. You can calculate your rate of interest by using a flat interest rate and reducing balance method.
What Individuals Are Qualified to Apply for a Personal Loan?
The eligibility criteria for a personal loan are listed below:
- Age: From 21 to 58 years
- Occupation: Both salaried and self-employed are eligible to apply.
- Income: ₹15,000 every month
- Work Experience: A minimum of six months for salaried individuals and two years of experience in existing business for self-employed individuals.
What Are the Necessary Documents to Be Submitted for a Personal Loan?
After applying for a personal loan, you have to submit the following documents:
- Passport size photo
- Identity proof from PAN card/ Aadhaar card/ Driver’s license/ passport
- Residential proof from Passport/ Driver’s License/ Ration Card Utility Bill / Aadhaar Card
- Letter of appointment from present employer and certificate of experience from the previous employer as job continuity proof.
- Ownership proof of residence from electricity bills/ maintenance bills/ property records (for salaried individuals only).
- Salary slip of the last six months, bank account statement of the salary account of the previous six months, and form 16 for income proof (for salaried individuals only).
- Submit an office address proof from Property Documents/ Rent Agreement/ Maintenance Bill/ Utility Bill (for self-employed individuals only).
- Proof of business existence from company registration certificate/ copy of tax registration/ company establishment proof (for self-employed individuals only).
- Bank statement for the last six months and an income tax return for the previous two consecutive years (for self-employed individuals only).
This is all the necessary information that you will need to apply personal loan online. We propose that you focus more on the personal loan rate of interest since it has a significant impact on loan repayment. The higher the interest rate, the more amount will add to your EMI.