With the growing digital market, banks and NBFCs have been smart enough to slowly but steadily make a change. They have even become more fluid with various online resources and applications. A variety of services are made available on the website including the steps & application procedure needed for a loan. In this article, we are going to discuss how a customer can proceed with the personal loan online apply process?
Things to look at before proceeding with the application process
Having a rough idea of what to expect from the application process is good. However, gathering necessary details turns out to be far more efficient. Here is a detailed list of pointers to check before you proceed with a personal loan apply online.
Check for the credibility
Given the growing numbers of frauds that occur in this industry. Checking the background of the lender is a crucial part of the entire process. While you may be applying for the loan online, there are chances that a false/fraud lender could take advantage of such. Before the customer makes any decision they should thoroughly check up on the lender. Two of the criteria that could help whether or not the lender isn’t a fraud is if they are connected or vetted by the RBI themselves and has a good track record of lending.
Learn about the interest rates
Since several agents compete in this aspect it is good to know about the rate of interest they may provide to the client. As in scenarios, where the client has been able to repay any previous loans without any issues, has a credit score above 700 and is well trusted by the lender, the percent of interest could be arranged to 8.5% to 9%. The range of interest in a personal loan is between 9% to 25%.
Maintain a good credit score
One of the biggest factors to keep in mind whenever applying for a personal loan online is to maintain a good credit score. It not only brings into focus, the financial discipline that you have in your life but also makes you a reliable borrower that everyone trusts. Having a good credit score is also a benefit when applying online since it makes the approval process a little faster than usual.
Research makes things better
Different banks & non-banking agencies possess different kinds of rules & regulations. Learning about those will provide a little more clarity on which path to look in. Thus fetching in great results.
Read between the lines
It is always beneficial to cross-check the policy or loan papers beforehand for the terms & conditions. Also, look out for the processing fee-related charges, miscellaneous charges or prepayment charges among others.
Get a run through by a professional
Though reading & understanding the process online may be helpful, it may not be sufficient. Professionals may help you to get a detailed understanding of the scheme.
Say no to multiple loans
Say no to the idea of taking multiple loans at once. As it will not only harm your credit score but will also bring in an unnecessary financial burden.
Steps to Follow While Applying for Personal Loan
Check the points given below:
- Visit the website that the lender has provided to proceed with personal loan online apply.
- Search for the option of “Personal Loans”
- Check out the eligibility criteria.
- Fill in the documents asked for
- Click on the “Submit” option.
In general, it takes one to two business days for a bank or NBFC to approve your loan application but some of them are also providing real-time application services.
Personal loan eligibility criteria
The customer needs to fit a certain number of requirements to make themselves eligible for the approval of a personal loan.
- They need to be at least 21 years of age and above but less than 65 years.
- Their credit score should be above 750.
- Their annual income should at least be above Rs. 15,000.
- They should have work experience of at least 2-3 years. Preferably more than 1 year with the present organisation, working at.
Personal loan uses
A personal loan is a flexible form of a loan. Individuals, in general, take up this type of loan to cover up for the missing funds during emergencies. To plan for a family trip, while moving abroad for further studies, to plan a wedding.
Even if the idea of applying for loans online may seem sceptical & unsafe, it is not the case. With a little bit of precaution and a trustworthy guide/lender you have nothing to worry about.