Personal Loan – Apply for Instant Personal Loan Online
No matter how well you plan finances, everyone needs money at some point. When this happens, people borrow money from friends, get a loan, or use their credit cards. Each choice has its pros and cons. Borrowing money from friends or family is risky and could cause problems in the future. What about credit cards? Not a great option!
An instant personal loan is the best option if you need to buy something, get rid of debt, ease a cash flow problem, or pay an emergency medical bill.
What is a Personal Loan?
A personal loan is available from a bank or a non-banking financial company (NBFC). This loan is used to pay for individual needs. It is issued to you based on essential factors like income level, credit history, employment history, ability to pay back, etc.
Unlike a house or car loan, a personal loan is not tied to any property. Therefore, the borrower doesn’t have to use gold or property as collateral. However, personal loans have higher interest rates than house, car, or gold loans.
Features of Personal Loan
- Flexibility: Personal loans can be used in many ways. So, people can borrow money for a wedding, a trip, school, medical bills, jewelry, electronics, etc. It’s a simple way to fix anyone’s money problem right away.
- Quick Payment: Pre-approval is usually a quick process. An instant personal loan requires eligibility. Having good credit is a plus. Depending on the lender, the loan usually takes 24–72 hours to be paid out. Existing bank customers may be able to get quicker approval online.
- Less Paperwork: A personal loan requires less paperwork. This makes things go faster. The lender’s customer service helps applicants to streamline the process.
- No collateral: Personal loans don’t need collateral if you meet the requirements. It helps people in emergencies. Personal loans are the best way to get cash quickly.
- Tax benefits: People can get a tax break if they use a personal loan to build or fix their homes. Section 24B lets them get an advantage of Rs. 2 lakh. People must track how much money they use for the above things.
Personal Loan Eligibility Criteria
Lenders give personal loans so people can fulfil their individual needs. Personal loan options are flexible and quick so that anyone can get help as soon as possible. Personal loans are made so that most people who need money can get it on time.
| Criteria | Requirement |
| Applicant’s age | When applying for a loan, applicants must be at least 22 years old and can’t be older than 58. |
| Work experience | At least one year of work experience and at least two months with the current employer. |
| Income | Minimum salary of Rs. 20,000 per month. |
| Employer category | Salaried & self-employed can apply for an instant personal loan. |
| Citizenship | Indian citizenship holders |
Documents Required for Personal Loan
Personal loans come with minimal documentation. People can get an instant personal loan by sending their paperwork online. Here is a list of what people need to show to get an instant personal loan:
| List of Documents | |
| KYC documents | PAN card Aadhaar card |
| Address proof | Aadhaar cardPassportRation cardUtility billsDriver’s licence |
| Income proof | Latest monthly pay slip from the current employer |
| Bank account statement | Original PDF format bank statement for the last three months. |
How to Apply for an Instant Personal Loan?
Lenders ensure that getting a personal loan is easy and quick. The online personal loan facility allows everyone to stay safe during the pandemic and still get all the money they need. To get a personal loan, people can follow the below steps:
Step 1: Go to the online personal loan page.
Step 2: Hit the “Apply Now” button.
Step 3: Choose a salaried or non-salaried worker option.
Step 4: Fill out the online form with personal information
Step 5: The applicant has to choose how much he wants to take and how long the payback time is (up to 60 months).
Step 6: After that, they should upload the required documents: PAN card, Aadhaar card, proof of address, proof of income, most recent pay stub, most recent three months’ bank statements, and degree certificate.
Step 7: The expert team at the lender company looks over the loan application.
Step 8: Once the personal loan is approved, the money is sent to the applicant’s bank account.
Once the money is in the bank account, people can use it however they want.
How Much Instant Personal Loan Can One Borrow?
Most of the time, it depends on the applicant’s needs. Banks usually limit how much one can borrow. Generally, banks try to maintain that EMI doesn’t cost more than 40–50% of monthly income.
When figuring out the amount of the personal loan, the applicant’s current loans are also considered. For self-employed people, the loan amount is based on the most recent profit/loss statement and any other debts (business loans) they may have.
Tips Before Applying for a Personal Loan
It’s easy to get a personal loan. Most people like personal loans because they are flexible and don’t need collateral. But there is always a catch, so everyone should think about the following before applying for an instant personal loan:
Know the Actual Needs
Why would someone want to take a personal loan? It’s a question that most people ask when they want to get an instant personal loan. So, based on their finances, everyone should figure out how much of a personal loan they need.
Look at the Interest Rates
The interest rates on personal loans vary by lender. However, a personal loan’s average interest rate is between 10% and 26% per year. So, before applying for a personal loan, consider the interest rates and choose the lowest one.
Processing Fees
The lender takes out some administrative fees from the personal loan when they process it. Processing fees vary per lender. So, compare costs before applying for a personal loan.
Fees for Foreclosure
Personal loans can be paid off or taken away after a particular time. When a loan is paid off early, some lenders charge fees. Choose a lender who doesn’t charge extra fees for paying off the loan early or foreclosing.
Conclusion
Following the tips mentioned above, anyone can apply for a personal loan online. If you choose the right lender, everything will go smoothly and stress-free.
Where should you look now? Use these tips to decide which loan offer is best. Instead of going with the flow, it’s essential to figure out what’s best for one’s finances. For more information regarding personal loans and charges, visit Piramal Finances.