With the change in lifestyle and spending patterns, we have seen a change in India’s financial behaviour. Indians are now ready to splurge to fulfil their dreams and desires, not just their needs. More spending means more requirements of funds in hands of an individual. Also, there has been significant growth in individual income over the years. Alongside, the demand for Personal Loan has increased due to customised services and offerings by leading NBFCs. Some of the salient features of a online personal loan application are no collateral security requirement, flexible loan repayment tenure, low interest rate, minimal documentation, quick approval and disbursal, higher loan amount, no hidden charges, simple loan process, no restriction on usage, etc. Here are a few factors that have contributed to a significant increase in demand for Personal Loan in India:
– Online Loan approval
Digitalisation has helped in improving the overall personal loan application processes for both lenders as well as borrowers. With online loan approval, borrowers can quickly apply for a loan online and get approval within a few hours. Before application, borrowers can also easily check for the EMI using a personal loan interest calculator.
– No collateral
One of the biggest advantages of a Personal Loan is that there is no requirement for collateral for loan approval. You don’t have to pledge collateral or look for a guarantor in case of a Personal Loan.
– Attractive interest rate
Interest rate is one of the main contributing factors when taking a loan. Your monthly EMIs are influenced by the interest rate fixed by your lender. Factors such as your credit history and credit score directly impact your interest rate.
– No end-use restrictions
No end-use restriction is one of the major advantages of a Personal Loan. You can use the loan to meet any expenses or emergencies. Generally, Personal Loan is used for marriage, higher education, renovation of a house, paying medical bills, travel, etc.
– Quick Disbursal
One of the major factors why Personal Loan is so popular amongst borrowers in recent times is due to quick disbursal. Often there is an urgent requirement for funds for the borrower.
– Minimal Documentation Requirement
Online documentation has simplified the process of documentation requirements. A borrower can check the documentation required on the official website and submit the same within minutes. Once the documents are submitted, the lender verifies the documents and assesses your loan application. Here are a few of the documents required while applying for a Personal Loan.
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- KYC documents like Aadhaar/PAN Card
- Current address proof (Passport/Utility bills/Rent Agreement)
- Latest salary slips and salary credit bank statements from the last 3 months
- Proof of employment, such as official mail ID confirmation /Emp ID Card
– Simple Eligibility Criteria
- Age: As a borrower, you should be at least 22 years of age at the time of loan application. On loan maturity, you should be not more than 58 years of age. This is to ensure that the borrower is of a working age
- Work Experience: You must have a total experience of 1 year
- Citizen: Indian citizenship is mandatory
- Monthly salary: You must have a minimum monthly income of at least ₹20,000
Along with the above-mentioned criteria, a borrower should have a good financial profile and good credit history for quick loan approval.
– Simple And Easy Loan Application Process
Be sure to check your personal loan requirements. Once you select your lender, follow the below-given steps to complete your loan application process:
Step 1: Visit the lender’s official website
Step 2: Check for Personal Loan section on the website
Step 3: Once you find the Personal Loan section, click on ‘Apply Now’
Step 4: Follow the instruction given on the website and fill up the loan application form
Step 5: Enter basic details for KYC and upload the required documents
Step 6: Await verification and application assessment.
Step 7: Receive confirmation on successful loan approval
Step 8: Approve and authorize loan amount disbursal
To conclude, Personal Loan is beneficial for a borrower who is looking for additional funds. While you are dealing with contingencies of life, it is important that you have an additional source of funding, especially in emergency situations. With so many lenders in the market providing Personal Loan, taking a Personal Loan can be confusing at times. To avoid any further confusion, you can visit a bank or NBFCs website and read about Personal Loan.