A personal loan is one of the popular types of loan, that people often take to fulfil their requirements. Instant personal loans are typically taken to accomplish personal, medical, or any other needs. Individuals looking for instant personal loan can apply online through a mobile application and most probably get it approved and disbursed immediately in their bank account. In this article let us learn, how to apply for an instant personal loan online, the eligibility criteria, and the documents required in the procedure.
Understanding Instant Personal Loans
Instant personal loan is a form of unsecured loan, taken by borrowers to obtain funds. Applying for this loan is simple and does not require submitting any security and guarantee to obtain a loan. This loan is usually available at banks, non-banking financial companies, and financial institutions. Depending on the lender’s policy the loan amount can range from small to larger numbers. The funds raised from personal loans can be used for various purposes such as weddings, unexpected medical emergencies, and other personal needs like paying credit card debt. The procedure for applying instant personal loan is not only simple and easy but also quick and requires very minimal documents.
Steps to Apply for an Instant Personal Loan Online
Applying for personal is easy, especially after the advancements in technology. The increasing technology and digitalisation of banking services have made various bank services accessible at the fingertips of users. Following are the steps involved in applying for instant personal loan online:
Research and Compare Online Loan Apps
Individuals looking for instant personal loan online can apply for it easily through mobile apps. However, before you apply for an instant personal loan online, you need to conduct thorough research on various instant personal loan app and compare their offers and features. This step helps you to get the perfect deals that also align with your financial requirements. Your research might include a comparison of loan amounts, interest rates, processing fees, repayment terms and conditions, and even customer reviews and feedback.
Check Your Eligibility
Every bank, non-banking financial institutions, and other loan providers have specific eligibility criteria that applicants need to fit in, to get their instant personal loan approved. Some common eligibility criteria are age, income, employment status, and credit score.
Selection of Loan Amount and Loan Tenure
Once you decide the loan amount to borrow the second step is to decide the loan tenure. When you choose a shorter loan tenure you pay less interest rate, whereas in a longer loan tenure, you usually pay more interest. However, in short loan tenure, the monthly repayment is often higher, and in longer loan tenure although the interest rate increases but repayment amount is less. Thus, borrowers need to select the loan amount and loan tenure wisely that aligns with their financial and does not put stress on them.
Procedure To Apply for Loan Online
After you have selected a reliable instant personal loan app, follow the steps given below to successfully apply for instant personal loan online.
- Open the lender’s mobile app and log in using your credentials.
- To apply for an instant personal loan, click on ‘Apply Now’.
- For online verification, enter your registered mobile number linked with the bank.
- Fill out the form by entering personal details like name, date of birth, income details, and PAN card number, and click on proceed.
- Finally, select the loan amount you want to apply for and loan tenure.
Submit Your Loan Application Form
Once you complete filling out the instant loan application form and upload the required documents, double-check the application before submission to avoid any errors in the form. Some loan providers may ask for a KYC process, complete that, and submit the form.
Eligibility Criteria for Applying for Instant Personal Loan
Here is the list of eligibility criteria that borrowers need to qualify to get an instant personal loan online:
- Age: Age criteria are usually between 21 years to 60 years of age.
- Employment Status: The applicant must be either self-employed or working in a reputed organization.
- Income: The income criteria vary from lender to lender; however, the borrower should have a stable monthly income to avoid repayment difficulties.
- Credit Score: A good credit score improves the chances of loan approval and better interest rates.
Documents Required in Instant Personal Loan Online Procedure
Applying for an instant loan online through an app is often a simple procedure and requires only a few documents for loan approval. Below is the list of documents required.
KYC Documents
Some lenders may ask for a KYC verification, and the documents required for KYC differ for every lender.
Proof of Identity
Identity proofs are usually an Aadhaar card and a PAN card.
Proof of Income
Bank statements and salary slips are considered reliable proof of income.
Proof of Address
Proof of address can be rental agreements, ration cards, and electricity bills.
Conclusion
Instant personal loan is a convenient solution for many financial needs. With the increasing technology and bank services digitalisation, applying for an instant personal loan is quick and easy. Individuals looking for an instant personal loan can apply using loan providers or a lender’s mobile application. Lenders like Tata Capital and others offer instant personal loan facilities with minimal documentation. However, before applying, borrowers should conduct research, compare various lenders, and also their eligibility criteria. By following the right parameters of a loan application, borrowers can easily secure a loan that aligns with their financial planning.
