India’s lending landscape has witnessed a significant shift. Demand for short term low amount credit is contributing majorly to the popularity of personal loans. As a result, the credit option has increased 2.3 times by value and 3.8 times by volume with respect to disbursal from FY17 to FY21.
A personal loan helps individuals meet diverse expenditures and efficiently deal with any financial urgency. In this regard, borrowers must be well-versed with the ins and outs of this credit option before they apply for a personal loan online to make an effective borrowing decision.
Five easy ways to apply for an online personal loan
Here are the following ways that will help an individual to make a loan option that will work in their favour:
1. Choose the right lender
The first and foremost thing borrowers should do is to invest time in choosing the right lender. Different lenders have a varying set of eligibility parameters and loan charges. Borrowers must compare different interest rates and then factor in the additional costs like processing fees, pre-closure, documentation charges, etc. The affordability of borrowing hinges on these lending rates. Additionally, choosing a lender who provides digital loan provisions will help borrowers apply and track the loan application online at the convenience of their homes.
2. Compute loan affordability
Availing of loan principal that an individual will not be able to repay will result in the rejection of the loan application. This is why lenders scrutinize borrowers’ income status before deciding on a loan amount. Hence, it is essential to know the financial limit and evaluate approximate expenses before availing of a loan amount. Borrowing unwisely adds up to the repayment burden and increases loan expenditure which affects its affordability.
3. Keep required documents handy
Another significant way to expedite the loan application procedure is to keep necessary documents at the ready. Lenders scrutinize the documents to verify borrowers’ profiles and disburse loan amounts accordingly. Lenders generally ask for KYC papers, income proof, identity proof, residence proof and other financial documents.
4. opt for a suitable loan tenor
Borrowers must settle for a loan tenor as per their repayment capacity. In this respect, they can use an EMI calculator, which will help them to compute EMI pay-outs for different tenor options. Additionally, determining the monthly instalments beforehand will help one choose a tenor which goes on par with one’s budget. Hence, borrowers should know how to calculate personal loan EMIs and opt for a loan tenor that meets their affordability.
5. Maintain the CIBIL score
Borrowers’ repayment history is reflected in the credit score. It determines the creditworthiness of an individual. A borrower with a CIBIL score of 750 and above will be offered a high-value loan amount at a nominal interest rate. It signifies that borrowers’ probability of missing out on their future loan repayment is less. Hence, individuals with substandard CIBIL scores should try to enhance them further or maintain them before they complete a personal loan application to receive instant approval for a loan amount.
Thus, it is crucial for borrowers to know certain things that can improve their personal credit scores.
In-depth knowledge regarding these ways ensures instant approval for the desired loan amount and makes this application procedure hassle-free.
Steps to apply for a personal loan online
After meeting the eligibility criteria and settling for an affordable option, borrowers must follow these steps mentioned below to borrow money online:
Step 1: Visit the official website of the preferred lender and select ‘Apply online’.
Step 2: Now fill up the personal loan online application form with relevant details and verify the details with the OTP sent to an applicant’s registered mobile number.
Step 3: Select the required loan principal and finally submit it.
An executive from the lender’s side will contact an applicant and carry forward the loan verification process.
Furthermore, one should settle for a lender offering pre-approved offers. Prominent lending institutions such as Bajaj Finserv extend these offers on financial products like personal loans, business loans, credit cards etc. These offers accelerate the lending process and save time. Intending borrowers can check their pre-approved offers by submitting their names and contact details.
To sum up, a personal loan has become one of the most sought after credit instruments due to its wide range of customer-friendly benefits. Hence, there are multiple reasons why availing of a personal online proves beneficial. Therefore, borrowers must be mindful of the above-mentioned ways to settle for a prudent borrowing decision before they apply for a personal loan online and make the most of its advantages.