Before learning how to apply for a personal loan online, understand what a personal loan is.
A personal loan is an unsecured loan offered by the lender based on the applicant’s credit history and current financial ability to repay the principal and personal loan interest computed based on the personal loan interest rate. Since it is personal in nature, it is also regarded as a multi-purpose loan, which individuals borrow to meet their immediate personal needs.
Due to personal loans being unsecured in nature, the personal loan interest rate is higher than most types of loans, i.e., car loans/home loans/education loans, etc. It is crucial to understand your finances before deciding to opt for a personal loan.
A personal loan application is straightforward and can be done anytime, anywhere at the speed of the click of a button! All leading financial institutions, based on the personal loan eligibility of the applicant, offer instant personal loans.
Go through the below steps to know how to apply for a personal loan online.
Personal Loan Online Application Steps
It is even easier for existing customers of a financial lender to get an instant personal loan. They can opt for the route via their net banking account and may even be eligible for pre-approval.
It is ideal for comparing personal loans offered by various lenders by having a fair idea about the personal loan EMI and checking if the same is under your affordability limit. You can also use the free personal loan EMI calculator to check monthly EMIs by filling in your details. Once you are clear on which lender to choose, you can refer to the below process.
- Go to the website of the financial lender.
- On the ‘Loans’ tab, go to the personal loan option and select the field in the drop-down.
- Now click on the ‘Apply’ option for instant application
- Fill in the required details in the personal loan application form dutifully after understanding the terms and conditions of the loan chosen
- After you have filled the application, click on Submit, the details will now be shared with the bank/lender
- Further to receiving the form, the personal loan eligibility of the applicant will be tested, and the applicant will have to submit the necessary KYC documents and income proof
- If the applicant is proved to be within the personal loan eligibility, the lender will disburse the funds directly into the bank account of the applicant, as per details shared by them in the unique loan application form.
Public documents required for a personal loan:
· ID and age proof – PAN Card, Aadhaar card, Voter’s ID, and Passport card, etc.
· Residential proof – Electricity bills, home registration Certificate, Voter’s ID
· Income Proof – Last three months bank statements, Salary/Payslips, Form 16, ITRs
· Personal loan application form, which should be duly filled and self-attested
As we observe through the steps listed above, the personal loan application process is instant and hassle-free as all the required information is available to applicants at their fingertips. Technology advancement has undoubtedly made lives more accessible, and now you can avail a personal loan quickly from the comforts of your home!