How to Compare and Apply for a Personal Loan Online in India?
If you need money to take care of urgent expenses and you are broke, you should consider applying for a personal loan online in India. Since many banks offer such loans, comparing and applying at the right place is important. Personal loans have much lower interest rates and are secured by your assets.
This guide will help you learn how to pick the best online personal loan service and get the money you need as quickly as possible. This article explains how to compare personal loan providers and apply online, so you can start focusing on your finances once again instead of on paperwork and phone calls with other companies.
Types of a Personal Loan
You can use the money for anything from buying a new car to paying off credit card bills, but it comes with an extra cost in the form of interest. The process is easy, quick, and convenient. Interest rates and guidelines depend on different banks and types of loans. Personal loans are available in a variety of forms depending on your needs.For Example:
- Wedding Loan
- Home Renovation Loan
- Travel Loan
- Debt Consolidation Loan
- Consumer Durable Loan
- Instant Personal Loan
- Personal Loan Top Up
How to Compare a Personal Loan Online?
In India, many banks, NBFCs, and private companies offer online personal loans. The interest rate, fees, and other terms and conditions are available on their websites. As a user, you can go on the lender’s site to find the best personal loan online.
- Understand your requirement
Before applying for a personal loan, you must know your basic requirements. For example:
- Which type of loan do you need?
- How much money do you need?
- How long do you want the money for?
- What would be your maximum monthly income?
- How much money and interest can you pay every month?
- Do you have a regular income?
- Identify the total cost or interest
When comparing personal loans online, the key differentiators are the interest rates, processing fees, stamp duties, and any other hidden costs. Before proceeding with your plans, consider the amount of the loan, the repayment period, and the permissible interest rate. Also, you need to understand the tenure of the loan.
Look for a loan that offers the lowest overall costs, including fees and interest rates, to keep borrowing costs as low as possible.
- Go to the financial service website
Finding a single bank’s website can be time-consuming and exhausting. So a better option may be to go to a trusted financial services website. Use their platform to compare offers from different companies. These platforms identify different banks, NBFCs, and fintech companies to collect the right information. They put all the required data in one place. So, it’s best to know your creditworthiness before searching for a lender and focus on those with better rates.
- Understand who you are
For salaried people with good credit histories, you can consider Axis Bank, ICICI Bank, Kotak Mahindra Bank, and HDFC Bank. For self-employed borrowers, consider NBFCs. Or, you may want to leave your contact details and receive customer service-based phone calls based on which you can make an appropriate selection.
How to Apply for a Personal Loan Online?
Unlike a car loan or mortgage, a personal loan covers any personal expense and has a flexible end-use. So, it makes it an unsecured loan. Unlike other loans, the application process for a personal loan is fairly easy. Banks don’t need to assess the specifics of collateral or other security before they decide whether to give you one.
There are various lenders available to apply for a personal loan online. These include nationalized banks, financial institutions, NBFCs, and fintechs.You can apply online with any of these lenders for fast personal loan approval on their official websites.
Step 1: Go to the website
You need to visit the lender’s website to apply for a personal loan. Understand their terms and conditions carefully before applying. Now you can sign up to create an account on their portal.
Step 2: Apply for a personal loan
To be redirected to the application page, enter “apply online.” Complete the fields in the form and enter your mobile phone’s One Time Password that will be sent to you. From there, you also need to fill out a form asking for your name, contact details, monthly income, etc.
Step 3: Upload the required document
Once this is done, the bank will call you or send an email asking for additional documents like an Aadhaar card copy, a PAN card copy, and address proof. You can submit these documents either through email or upload them on their website. Also, they need your income documents, income tax filing, and credit score.
Step 4: Select the amount
After completing your KYC, enter the personal loan amount that you want to borrow.
Step 5: Waiting for approval
Your personal loan online will be approved once all of the documents have been approved and all of the eligibility criteria have been met.
Once these steps have been completed, the representative from the bank should call you with the updated loan approval and details about the wire transfer of the loan funds.
Conclusion
On one hand, the expansion of unsecured lending has allowed loans to be fulfilled quickly, easily, and efficiently. Yet, care must be taken because the easy availability of loans can trap borrowers in debt for years or decades to come. Preparing a budget plan that includes the amount of money we might need in the future is difficult if you are careless. If so, it is advisable to go for a personal loan. A personal loan allows you to borrow money from a bank or non-banking finance company without pledging any form of security. But before applying for one, you can check out the Piramal Finance website to compare and apply for a personal loan online.