Can I Get A Personal Loan Online Without Branch Visit?

No matter how well you plan your finances, unexpected financial needs can arise. In such situations, borrowing from friends, taking a loan, or using a credit card are common options. Personal loans and credit card borrowing are feasible choices, but personal loans generally outperform credit cards. A personal loan is the best financial solution for personal expenses, debt consolidation, managing liquidity, medical emergencies, or other requirements. But, to avail of this option, do we need to knock on the lenders' door, or can we get it from the comfort of our home? Let's find out.

What Are Personal Loans?

A Personal Loan is an unsecured loan that requires no collateral, ideal for meeting various financial needs. With minimal documentation, it provides a lump sum for expenses like home renovations, medical emergencies, and more. Repayment is made through pre-agreed monthly installments over the loan tenure. Many prefer Personal Loans over credit cards due to lower interest rates. The loan is versatile, serving personal goals, needs, and emergencies. Online accessibility and competition make it affordable. Unlike revolving credit card debts, Personal Loans offer fixed interest rates ranging from 10.5-25%, where the upper cap may increase for non-salaried borrowers.

Eligibility Criteria:

Personal loan eligibility is determined by income, current EMIs, employment type, experience, and creditworthiness, varying among banks and NBFCs. Being collateral-free poses a higher risk, so lenders consider certain parameters for filtering applicants. Common eligibility requirements typically include Indian citizenship, age between 21-65 years (or 23 years with some lenders) and a good credit score exceeding 750. Adding a co-applicant can improve approval chances for those with a bad credit score.

Some lenders also focus on the employment factor to filter applicants. They may require salaried individuals to have at least one year of work experience, while some demand longer tenure for personal loan eligibility. For self-employed individuals and professionals, a minimum of 3 years in the current business is generally needed to qualify for an unsecured personal loan.

Application Procedure For A Personal Loan:

You can get a personal loan online or apply for it offline. In the offline procedure, you need to visit the lender's branch and complete the formalities with the help of an associate. However, thanks to the advent of technology, getting personal loan online is also possible in the following way-

1. First, browse for the best personal loan online. Research for a lender offering competitive personal loan interest rates and flexible eligibility criteria.
2. Provide necessary information to determine your repayment capacity, including personal details, income, and employment history, through the lender's app or website.
3. Once your information and credit history is reviewed, the lender will assess your personal loan eligibility.
4. Upload documents such as bank statements, salary slips, photo IDs, and address proof, and validate financial records through your bank's web portal if required.
5. The lender will verify all provided documents during the application process.
6. Track your application status through the lender's mobile app or contact their customer care team.
7. The approved amount will be disbursed to your bank account within a few days.

Factors To Consider Before Applying:

Getting the right personal loan requires careful consideration of various factors. Here are some essential tips to help you make an informed decision:

Minimum And Maximum Funding:

The loan amount for a personal loan depends on income, profession, and the lender's assessment. Business owners' loan amount depends on the profit and loss statement, while salaried individuals' loan amount depends on monthly salary and credit history. Lenders also have maximum and minimum funding limits, so always check before applying.

Maintain A Good Credit History:

Aim for a CIBIL score above 700 to improve your creditworthiness and secure a lower interest rate.

Compare Rates Of Interest:

Shop around and compare interest rates from different lending institutes to find the best deal for your personal loan.

Assess All Costs:

Consider processing, prepayment, and late payment fees to get a precise estimate of the total expenditure and ensure affordability.

Choose The Right Loan Amount:

Prioritize your needs and opt for a loan that covers essential expenses while considering repayment.

Evaluate Repayment Ability:

Use a Personal Loan Calculator to estimate monthly EMIs and ensure your income is sufficient to repay the loan without financial strain.

Conclusion:

You can now access hassle-free personal loans from IIFL Finance without the need to visit a branch. Meet the eligibility criteria and showcase good creditworthiness to obtain the funds you require from the convenience of your home. However, remember that loan approval relies on several factors, so assessing all aspects is vital. Make an informed decision and take the first step towards fulfilling your financial goals. Apply for a personal loan with IIFL Finance today!