The demand for a small-ticket personal loan in the age group below 25 has increased 2.3 times in terms of value (1). Individuals can easily obtain their required capital and meet their emergency financial crises through this credit facility. Further, major lending institutions also let customers apply for personal loans online. It reduces the time and effort borrowers would have otherwise put into the conventional loan application.
Advantages Of The Online Personal Loan Application Process
Individuals can enjoy the following benefits by undergoing an online application process for personal loan:
- Convenient application process
With the online facility, individuals can now apply for a personal loan from the comfort of their homes or anywhere they prefer. They do not need to waste their time and effort visiting the physical branches of lending institutions.
- Emergency loan application
The online personal loan application process lets them request the credit facility 24×7. They will not have to waste a single moment waiting for the branches to open at their official business time. This way, they can save much of their precious time during emergency credit shortages and get personal loan finance quickly.
- Hassle-free documentation process
Individuals can complete their online personal loan application process by uploading their necessary documents online. It eliminates hassles of getting photocopies of the necessary identity proofs and other records. So, it has almost zero risk of tampering or losing the original documents while getting their photocopies.
- Fastest loan processing
In a conventional personal loan application process, lenders take time to process the data. In contrast, when borrowers apply for a personal loan online, all the data gets stored in the dedicated repository in a pre-determined order. The representatives can easily track and find the necessary documents or application forms from the online database. All these factors enhance the speed of loan processing.
Nevertheless, whether it is an online or offline process, lending institutions ensure that the applicants meet their eligibility criteria, such as income, credit score, age, etc., properly. A CIBIL score above 750 is one of the essential factors in getting approval on their loan requests. In this regard, borrowers may need to know how they can get a personal loan when they have a bad CIBIL score.
- Easy tracking of loan application status
Applicants can trace their loan application status easily anytime when they undergo the online application process. Lending institutions’ portals let them understand whether their loan applications are verified and approved. This way, they can avoid the hassles of getting in touch with customer care representatives on their contact numbers to know the status of the application.
This way, the online application process helps individuals to place their personal loan requests instantly and conveniently. In this regard, there are certain things they need to be careful of while signing a personal loan. This way, they can become fully aware of all the loan terms before availing of the credit.
Things to keep in mind while borrowers apply for a personal loan
Individuals also need to consider the following aspects while applying for a personal loan:
- Determining the required loan amount
They can abstain from requesting a lower or higher credit amount by properly estimating the amount that will meet their credit shortages. This way, they do not have to pay too much interest if the borrowed amount is higher or take another loan if it is insufficient.
- Comparing lending institution
By comparing the personal loan interest rate and other charges across the lending industry, they can identify a loan offer that can keep their borrowing cost minimum. This will also help them obtain lower EMIs and pay the debt more conveniently.
- Finding a suitable tenor
Individuals must also determine which tenor will be appropriate according to their repayment potential. They can leverage the interest calculator to identify such repayment periods.
In addition to the interest calculator, they also should learn about all other calculators they can use to get the most out of their personal loans. Using these tools, they can be fully aware of their personal loan.
Furthermore, major financial institutions in India also extend pre-approved offers to their customers on financial products like personal loan, business loan, and credit card. This readily available credit facility lets them enjoy quick loan application procedures. They can check their pre-approved offers easily by providing their credentials, including names and contact details, on the financial institution’s website.
In conclusion, individuals can apply for a personal loan online to significantly expedite their loan application process. It also reduces the inconveniences of traditional borrowing procedures. For instance, they do not have to visit the financial institution’s offices during their opening hour at the cost of their valuable time. They just have to visit the official website of the lenders and submit the duly filled online application form to get the credit facility.