Comprehensive Guide on Obtaining Personal Loans Online

Personal loans have been the financial product of choice due to their flexibility. This credit option is the ideal solution to meet a hoard of monetary requirements, whether urgent or planned.
The availability of online lending has further streamlined the process, helping you to secure the funds within a few hours. But how do you apply for an online instant personal loan online?

Keep reading to discover the process and other details associated with the process.

How to apply for a personal loan online?

Here is a step-by-step guide on the application process for this financial product –

Step 1: Visit the official website of the lender

Step 2: Find the personal loan option

Step 3: Click on the Apply Now option

Step 4: This will lead you to an online personal loan application form that you need to fill out correctly without skipping out on any details

Step 5: Scan and submit all the papers required for the loan

Step 6: Review the application and then submit it

After completing this process, a representative from the respective financial institution will contact you to complete any further proceedings.

Following that, you will receive the loan approval via your contact details. The financial institution will then send the loan agreement and e-mandate, and once you sign and submit them, credits the funds to your account.

It is fair to say that obtaining a personal loan online is not a hassle anymore. To make this process easy without any delays, you need to meet the eligibility parameters and keep the documents required in order.

Eligibility Criteria of a Personal Loan

Age: 21 to 65 years

Credit score: Ideally 750 and above

Nature of employment: Salaried or Self-employed

Total working experience: Depends on the lender

Monthly income: As specified by the lender

Documents required for a personal loan:

ID proof
Current address proof
Income proof (salary slip and form 16 for salaried individuals, ITR documents for self-employed individuals)
Bank account statement
Proof of business/employment
Passport sized photographs

A point to note here is that the eligibility parameters and list of documents will be lender specific. Before applying for a loan, you must check the details with your lender.

Top 4 things to keep in mind before applying for a personal loan

Enrolling eligibility and documentation is important before applying for this credit facility. But, to avoid any inconvenience, you also need to consider a few additional pointers:

1. Loan interest rate

The first point you must remember while applying for any loan is the interest rate. Since it will decide your total debt, you need to ensure you get the best possible one to lower your burden.

There are different ways of reducing the interest rate on loans, like improving the credit score and increasing income. You can keep them in mind and work accordingly to negotiate a better interest rate.

2. Loan repayment tenure and terms

The next point to review here is the repayment tenure of a loan. This period, represented in months, indicates how long you can carry this financial burden. Before applying for a loan, ensure you have opted for a tenure that suits your financial capacity.
Remember that a shorter tenure may lower your overall debt, but it will increase the EMIs and vice versa.

As a prospective borrower, you must also consider the loan repayment terms, which include the facility of prepayment and foreclosure. Every lender has different terms for extending these benefits, so check them before applying.

3. Additional charges

Another vital point to remember before applying for a personal loan online is the additional charges, which include the processing fee on personal loans, foreclosure and personal loan prepayment charges and legal fees.

Since these charges can increase your overall debt, you must factor them in to ensure you stay within your budget.

4. Loan terms and conditions

Last but not least, reading the fine print of the loan is essential to avoid any future complications. If you have doubts while going through them, ask the lender’s representatives and clarify them beforehand.