If you have been undergoing a financial strain for sometime now, chances are that you have considered the possibility of applying for a personal loan. However, while many of us are aware of the existence of a personal loan, not all of us know how to apply for one. So, read this article to know everything about personal loans in India and how you can apply for one during an emergency.
What Is a Personal Loan?
Before we dive into the intricacies of how to apply personal loan online, let us understand the meaning of one and the differences it presents from a traditional loan.
In simple terms, a personal loan can be understood as a financing instrument that you borrow from a lender, usually between ₹50,000 to ₹500,000, and pay it back via a flexible repayment system.
Features of a Personal Loan
Now that you know the basics of a personal loan, mentioned below are some of its most significant features.
1. High Loan Amount and Free Will
At its inception, most personal loans in India had a significantly low loan amount; however, today, you can easily get a personal loan stretching all the way from ₹50,000 to ₹500,000, and the best part is, you can spend this loan amount on anything you want.
Unlike a traditional loan, which has stringent rules, a personal loan gives you the freedom to spend the money without prior intimation to the lender. For example, you can spend a home loan only to build a new house, acquire one or refurbish an existing one. Sincemost of the loan amount is transferred to the contractor you hire, there is very little scope for you to decide on the spending avenue.
On the other hand, if you take a personal loan of, let’s say, ₹100,000, you are free to either spend the amount to pay for your college fees or pay as a downpayment for your new vehicle.
2. Competitive Rate of Interest
A traditional loan has a pre-decided rate of interest. However, since the traditional loan industry has been undisrupted for decades, legacy lenders have no incentive to offer low rates of interest to consumers.
On the other hand, since manylenders, who specialise in personal loans, have entered the market, you as a borrower can benefit from competitive rates of interest they offer.
3. Instant Approval
Long gone are the days when you were required to stand in long queues and submit your application physically. These days, most lenders who specialize in personal loans leverage the power of modern fintech technology to not only give you the option of applying for the loan entirely online but also process it instantly.
Modern lenders like HeroFinCorp, have an entirely paperless process so that you can apply for a personal loan online and enjoy the convenience of instant approvals. This means that
youcan get the money in your account at the earliest.
How to Apply for a Personal Loan?
Mentioned below are the steps you will need to follow in order to apply personal loan online.
- Once you have chosen the lender, download their application to your smartphone or visit their official website to initiate the application process.
- Keep your documentation (both eKYC and income information) handy, as you will be required to share these with the lender in the upcoming steps.
- Upload all your documents, submit your application, choose the loan amount you desire along with other finer details, and complete the process.
- Once your application is submitted, the lender will take a few hours to verify the information, and upon approval, you will receive the money in your account in less than 48 hours.
- The applicant must be of legal age, that is, 18 or 23.
- The applicant must be a permanent resident of India.
- The applicant must preferably be a salaried employee with a minimum monthly in-hand income of ₹15,000 with at least one year of continuous employment.
- In case the applicant is self-employed, he or she should have a net monthly income of ₹15,000 with at least 2 years of vintage in the current domain.
- The applicant must have their eKYC documents ready.
- The applicant must have income proof (salary slip for salaried employee and latest ITR report for self-employed, along with last 6 months bank statements for both).
Applying for a personal loan when you are in an emergency can prove to be a lifesaver. Now that you know how to apply for a personal loan online go ahead and apply for one today.