When it comes to securing funds through external financing, personal loans are probably among the first few funding options people seek out. These are high-value advances and come with zero collateral requirement, which makes them suitable for big-ticket financing against zero risk to personal assets. The availability of online personal loans has only made it convenient for individuals to access necessary financing from the comforts of their homes.
Some top features that make personal loans available online a popular funding option include the following.
- Funding of high quantum, up to Rs.25 Lakh without any security
- Zero restriction to end-use, which makes the loan suitable for widespread funding, from home repairs to higher education, wedding expenses, and more
- Simple eligibility criteria to fulfil with minimum documentation requirement
- Flexible repayment tenures that can go up to 5 years for easy repayment
- Option to repay the advance in easy EMIs online
- Competitive rates of interest and other charges
- Easy transfer of outstanding loan balance to a new lender offering reduced rates
While these are the top reasons that govern the popularity of personal loans, their online availability has only boosted their demand in the financial market. The introduction of online personal loans has also enabled various lending institutions to reach out to the remotest locations in India, making loan availability possible.
Below are some of the top advantages that an online personal loan brings to the fore for borrowers.
Easy Application from the Comforts of Your Home
The advantages of online personal loans start right from the application stage, whereby you only need to access your internet-connected device to apply. Applying for your personal loan online requires you to fulfil only a handful of document requirements, that commonly include the following.
- Proof of applicant’s age
- Proof of identity, that should include documents like PAN card, Voter ID card, Aadhaar card, etc.
- Address proof, which can be fulfilled by documents such as Aadhaar card, Voter ID card, Passport, utility bills, and the likes
- Proof of income, which differs for salaried and self-employed applicants. The common income proofs include bank account statements and Income Tax Return filed. Additionally, salaried individuals also need to provide their salary slips. In the case of self-employed individuals, documents like Balance Sheet, Profit and Loss statement and other financial statements are applicable.
Along with these, one needs to provide passport size photo along with the application form for process completion.
In case your lender doesn’t require you to submit documents during application for an online personal loan. You would most probably be provided the facility of doorstep document collection, so you don’t have to step out.
Instant Loan Approval
Online applications for personal loans also come with the facility of quick approval. The simplified eligibility and documentation along with the elimination of various. Steps to conventional loan applications have combined to make quick approval possible. With reputed lenders, you can expect approval for your personal loan in not more. Than a few minutes of your application submission, which can be as less as five minutes.
You only need to ensure that you have fulfilled all eligibility requirements before applying. Also, it is best if you consider matching your loan amount requirement with your current financial stability and repayment capacity.
Fast Disbursal under 24 Hours of Approval
Once the loan amount applied for by you has been approved, disbursal of funds to your bank account doesn’t take much time as well. Some of the best lending institutions are known to send money in your bank account post-approval only within the next 24 hours.
Minimum Eligibility Criteria
The reduction of eligibility criteria for online personal loans to only a few has also worked in the favour of these advances and their growing popularity. Individuals seeking to avail funding do not need to undergo lengthy eligibility checks and can confirm. Their capability to avail the loan with only a few basic parameters mentioned below.
- City of residence
- Credit score
- Income as per the city of residence
- Occupational stability
- Residing Indian citizenship
Once you have met these criteria as per the lender’s list of requirements, you can proceed to apply for an online personal loan. The scope for management of loan account online through dedicated customer portal has only simplified loan tracking and repayment for borrowers.