Getting an Online Personal Loan? Here is what you should know
Financial urgencies can come knocking at any moment, just like an unwanted visitor. In fact, your financial needs can arise when you are least expecting them. However, thanks to modern financial institutions, it is possible to fulfil your needs without paying a visit to a traditional money lender. A personal loan, especially, can easily meet your financial needs quickly, as long as you are eligible. The fact that you can avail an online personal loan has made things simpler too.
Personal loans are perfect for those who do not have a valuable asset to pledge as collateral in order to obtain funds. This unsecured loan can be used for various purposes too. It can be used to fund weddings, vacations, home renovations, and children’s education, among other things. In short, no matter what your need is, going for a personal loan is a wise option. Before applying though, there are a few things you should know.
Things to Consider While Getting a Personal Loan-
- No Securities Required– A personal loan does not require you to pledge any collateral or put any asset on the line. However, your credit score, repayment history, salary, and other factors all play a crucial role in loan approval. So, try and maintain a good credit score by paying all your dues on time.
- Flexibility– A personal loan comes with flexible tenure. Its tenure varies from anything between 12 months to 60 months. However, you must keep in mind that the longer the tenure, the higher the interest rate, and vice versa.
- Multiple Uses– You can use a personal loan for the fulfilment of various purposes. You can use it to pay for a medical emergency, a grand wedding, debt consolidation, that dream trip, and many other things.
- Minimum Documents Required– Since most lenders require minimal documents, you can apply for an online personal loan easily. The key documents that your lender might ask for are proof of income, address proof and identity proof.
- Fast Disbursal– If your application is approved, a personal loan can be disbursed in just a few hours. If you have a pre-approved loan deal, the turnaround time can be a few minutes only.
- Flexible Loan Amount– The amount of your loan depends upon several variables, including your repayment history, age, salary, and credit score, among others. Individuals can borrow up to 30 times their monthly income with a personal loan usually. However, you should only take that much loan which is needed to meet your financial obligations. Otherwise, you will be burdened with unnecessary loan EMIs.
How to Get an Online Personal Loan?
Obtaining a personal loan is no longer a hectic task. You just have to follow a few simple steps to apply for one.
1- Fill in your personal, financial, and employment information on the online application form. You must fill in your PAN number, as well as your income details.
2- The next step is to choose the amount that you want to borrow. Enter your personal loan amount within the sanctioned cap if you have a pre-approved loan offer.
3- The next move is to enter your account information as well as set up your E-mandate. You must complete a one-time online transaction authorization here.
4- You may also have an additional facility of availing insurance to safeguard against your personal loan liabilities.
5- Once the above formalities are done, you can accept your e-agreement after verifying your details. After this, if everything is in place, the loan amount will be disbursed to your account.
Benefits of Online Personal Loan-
- Online Tracking– Applying for a personal loan online helps you to keep track of your application at any point of time. Once you apply, you will receive an application number. You can use it to keep track of your loan’s progress and, later, to monitor your loan online.
- Convenient– Applying for an online personal loan is a simple matter. All you have to do is go to your preferred lender’s website, fill in your details, and upload your documents. The procedure is simple to follow and can be completed at any time and from any place.
- Fast Processing– Online personal loans are very quick. As the computer software handles the loan processing, it saves time and effort while also speeding up the process.
With the second wave of COVID raging all around us, it makes sense to stay safe as much as possible, even when you need to meet an urgent need. This is the reason why getting an online personal loan is wise, as it minimises your contact with the outside world and still credits your account with the funds you need. As long as you double check your eligibility, get all your documents in place and follow the right steps, getting a personal loan can be easy.