posted on 2020-05-16 10:03:21 by Admin
A need for emergency funds can arise anytime to cover the short and long term requirements. In such a situation, a personal loan is helpful to fulfill the immediate need. A personal loan is an unsecured loan that does not require any collateral. Moreover, to apply for a personal loan, you do not need to visit a bank. The process of the personal loan application can be done easily online. With lots of applications available online, you can easily compare the interest rates offered by different banks and NBFCs. The 9-step guide forthe Personal Loan Online Application processis given below in simple steps.
With the simple guide for online personal loan application, you will get the fair idea of the documents and other formalities required. The general process remains the same but it may vary from lender to lender.
Step 1:- Compare Rates Online
Before applying at any financial institution, compare the rates online. Check the various products and shortlist the best personal loan based upon the interest rates, repayment period, and minimum eligibility requirement.
Step 2: - Fill the Online Application Form
Once you have chosen financial institutions as per your requirements, then fill the online application. In there you will need to fill basic details like name, phone number, email address, monthly income, etc. These details will help the financial institution to get back to you to know your exact requirements. Keep checking your phone and emails for any updates.
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Step 3: - Documentation
Thereafter, you will be asked to upload the important documents to verify your credentials. These documents will include Aadhaar Card, PAN Card, Bank Statement, Address Proof, Employment Proof, etc. Kindly upload all the documents for the faster loan verification process. Any kind of manual editing in the document can lead to outright rejection of the application form.
Step 4: - Online Loan Verification
Once you upload all the documents, the institute will check all the details to analyze your creditworthiness. All the process takes place online and does not require bank visits. You may have to upload some documents again in case there is some issue in the scanned copy of the documents.
Step 5:- Credit Score Check
Along with the correct documents, banks also check your credit score. It analyzes your past credit history-related number of loans, EMIs, etc. A candidate with a credit score of 750 and above can easily get the loan. You can check your credit score online, in case of low credit score, try to improve it to at least 750 to enjoy the benefits of low-interest rate and high creditworthiness.
Step 6:- Loan Approval
Now based on eligibility, documents, and credit score, the institute will analyze your credit loan. If all the criteria are fulfilled then there are high chances of loan approval.
Step 7:- Details of loan approval
Once the loan is approved, the lender will contact you to update the details regarding the loan. The final loan amount, repayment duration, and interest rate will approve based on your income, credit score, employment duration, etc.
Step 8:- Processing Fee
Customers should pay processing fees only when the loan is approved. This way you can save yourself from the fraud. So, in the end, pay the applicable processing fee and your loan will be disbursed as soon as possible according to the policy of the financial institution.
Step 9:- EMIs
Once you get the loan, keep the track of monthly EMIs. Pay them as per schedule to avoid the culmination of the interest rate. Paying EMIs on time helps to maintain your credit score and your creditworthiness.
The process for an online personal loan application is hassle-free and gets approved in minutes. Applicants with all the documents can even get a loan within 24 Hours. The other benefits of getting personal loans online are as follows.
As multiple banks and NBFCs are offering personal loans online, the interest rates vary from 10.99% to 35% per annum.
Flexible Repayment Period
Online personal loans can be availed for a minimum of 3 months to a maximum of 5 years.
Loan Disbursal Time
You can get your loan in a minimum of 24 hours to a maximum of 5 Years.
For personal loan online application, you do not need a hard copy of any documents. Just scan the documents and upload them online.
Since you are planning for a personal loan, it is a good idea to check the EMI that you will have to pay during the repayment period. It will help you to plan your finances monthly. Using an EMI calculator is easy, you just need to enter your loan amount, interest rate, and repayment duration. Once you fill the details, the following results will appear.
● Monthly Payments - It is the monthly EMI that you need to pay until the completion of the loan tenure. It covers both the loan amount and interest.
● Total Interest- This will show the interest rate on the total loan amount.
● Total Amount - It is the total amount including loan and interest rate.
Personal Loan is flexible loans that can be used for multiple purposes unlike a home loan or a car loan. You can apply for a personal loan for renovating a house, paying your previous loans, etc. Even financial institutions do not even ask you the reason for personal loans.
● Personal Loans for Balance Transfer- You can apply for such personal loans when you are getting a low interest rate at another bank.
● Top Up Personal Loan- In this loan, you can apply for additional funds on the current ongoing loan.
● Use to Payback Previous loans- If you are already paying so many EMIs, then you can close all the previous loans by taking a new loan. This way you will need to pay EMI for one loan.
● Loan for Travelling- Having a dream trip in a plan? Then don’t wait, get the money at low-interest rates.
● Personal Loan for Wedding- In case you are short of funds to have your dream wedding, then you can apply for a personal loan to meet the emergency needs.
● Personal Loan for Home Renovation- If you are planning to rebuild your house, or planning to buy new accessories, then in that case also, you can apply for a personal loan.
For any more guidance, please contact us at email@example.com. To know more about, COVID 19 Loans, best personal loans, visit Loanadda.com.