How To Get A Personal Loan In Minutes

You can get an instant personal loan from a lender or a financial institution. It can be used for personal expenses. Some examples of personal expenses include buying consumer electronics and appliances, paying medical bills, and going on vacation. 

In an instant personal loan, the borrower gets the money at a fixed variable interest rate for a specific period of time. However, the borrower doesn’t have to put up any kind of collateral or asset as security for it. This kind of loan is also known as an unsecured loan. After that, it’s up to the person who has availed of the loan to pay back the full amount in monthly payments that they can afford.

Types of Personal Loans

There are two types of personal loans: secured and unsecured. Let’s learn more about them.

1. Secured 

A personal loan is considered to be secured if the borrower has to put up some form of collateral to get the loan. You might be able to avail of a personal loan if you have a savings account in a bank or a Certificate of Deposit (CD). Furthermore, you can also avail of a loan if you have a car or some other assets that can be used as collateral. If you can’t repay the loan, the lender can keep any collateral you put up for it.

2. Unsecured

An unsecured personal loan is not backed by anything. Since there is no collateral to collect, financial institutions usually see this as a riskier option. This could also mean that the borrower will have to pay a higher interest rate.

Why Should You Apply For Personal Loans?

Considering that there are many top-rated lenders, you can get an unsecured personal loan with the lowest interest rate. It also has many other benefits, such as:

• As soon as your application is approved, the money is added to your bank account.
• It gives you the freedom to choose how long the loan will last.
• If you applied online or via an online lending platform, you can view the status of your application. You can also get any help you need 24×7.
• There are minimal paperwork requirements to meet.
• The interest rate is set and stays the same throughout the loan tenure.
• You will not have to provide any security or collateral.

What is The Most Money You Can Borrow?

The most you can borrow depends on how much money you make. Most of the time, lenders approve loans based on their calculations, so that your EMI doesn’t come up to more than 40% to 50% of your monthly income. The amount of the loan is also based on whether or not you have other debts to repay.

If you own a business or work for yourself, the lender will decide your loan amount on the basis of your profit and loss statement. On the other hand, as a salaried professional, the lender will look at your salary and other debts to find the best loan amount for your needs.

How Can You Get an Instant Personal Loan in Minutes?

Obtaining an instant personal loan from any lender is now much easier than it was a few years ago, thanks to the integration of online and digital services. Individuals can now apply for a personal loan online in minutes using net banking or mobile apps.

The loan disbursement process has also become more efficient and quick. If an applicant provides accurate information to the lender, the loan could be disbursed within a week or a couple of days. 

You can follow the steps listed below to avail an instant personal loan:

Step 1: Establish what you need. Decide why you require a personal loan and the amount you require. Ensure that you only borrow what you need.

Step 2: Obtain the application form for the personal loan, and fill it out with all the required information.

Step 3: Provide the necessary documentation. It will substantiate your identity, income, age, and address.

Step 4: The lender will then review your application and validate the submitted documents.

Step 5: If the lender determines that you are eligible, the loan amount will be deposited into your bank account. This will be done within a day or week depending on the lender.

Required Qualifications For an Instant Personal Loan

Those who want an instant personal loan have to meet the following qualifications:

• You must work with private limited companies and public sector workers, including those from central, state, and local bodies.
• People between the ages of 21 and 60.
• People who have worked for at least two years, including at least one year with their current employer.
• Those who have a net income of at least Rs. 25,000 per month.

Documents Required to Apply for a Personal Loan

Even though the documents needed depend on the lender, here are some of the most important ones you must send with your application form:

1. Income proof (salary slip, bank account statement, ITR forms)
2. Identity and address proof (Aadhar card, Voter ID, PAN card, utility bills, rent agreement, etc.)
3. Official copies of your diplomas and license (only applicable for self-employed applicants)

Can You Avail of a Personal Loan With Someone Else?

You can apply for an instant personal loan with your spouse or any other family member, like your parents or siblings. When you opt to apply with a co-borrower, the lender will take into account both of your incomes when deciding your loan amount. This means you can apply for a loan with a higher amount. But you should be aware that if your co-borrower has a poor credit score, the lender might turn down your loan application.

Conclusion

One of the most popular and known types of loans taken out in the modern era is an instant personal loan. Personal loans have a great number of benefits, but there are also several other factors that contribute to their popularity. These loans can be used as per your financial needs and go a long way towards reducing your financial burden.

For more such blogs on instant personal loans, visit the Piramal Finance website. They also offer a variety of products and services for you to choose from.