Why Are People Opting For Personal Loans After the Pandemic Crisis?
The pandemic has affected lives in several ways. The economies of several strong countries were hard hit. Citizens faced a similar crunch. Many struggled financially to meet their basic needs.
This was a period of turmoil in which everything changed, from an individual’s daily routine to the economic position of countries. The rise in instant personal loans was another change during this period.
Why is there an increase in the number of people opting for personal loans?
The pandemic and lockdown affected the economy’s financial flow. Many people from various economic strata had to deal with financial issues. These occurred due to salary cuts, unemployment, and job losses. They left them unable to meet their day-to-day needs.
Medical emergencies increased daily. It led to people spending a lot in the health sector. It was an attempt to save the lives of their loved ones. People began taking out instant personal loans to pay off debts. They used them for other emergencies in education, health, and other fields. The number of people who became dependent on personal loans increased.
What are a personal loan and an instant personal loan? How are they beneficial?
The purpose of instant personal loans is to help borrowers during tough financial times. There are two kinds of personal loans. They can be secured or unsecured. Secured personal loans are given in exchange for collateral. Unsecured personal loans are given without collateral. The rise in the number of people opting for personal loans reflects how beneficial they are.
This loan can be used for emergencies without restrictions. It takes minimal time to process the loan. It has a low interest rate. EMI repayment options are available. The process of taking instant personal loans and paying them back is easy.
Personal Loans and Procedures
Online Process
The online instant personal loan process is cost-effective. It makes the entire process of getting a loan easier at every stage. The application process is completed online. And the process of approval makes things easier for people.
Secure
The online process is secure. It is because financiers must follow privacy regulations. They take every step to protect their clients’ information.
Easier
Banks’ online portals give all the information on personal loans. It makes the process easier. No documentation is involved in the online application process. Only the online documentation procedure is covered.
24*7 Services
One of the primary advantages is that one may apply for a personal loan anytime. It is because the lending service is available 24 hours a day, seven days a week.
When compared to traditional lending procedures, the entire process is smooth.
What are the eligibility criteria for getting a personal loan?
For an instant personal loan application, the banks consider the following: your age, monthly salary, credit rating, credit report, and more.
A person must be employed to get a personal loan. They should be between the ages of 21 and 65. The borrower must be an Indian citizen to obtain a loan from an Indian bank. The borrower’s income should fall between INR 25,000 and INR 35,000. A person can estimate the amount of EMI. They can use an Equated Monthly Installment (EMI) calculator. A personal loan calculator can be used to calculate the amount that must be repaid.
How to calculate Personal Loan EMI?
The formula for calculating personal loan EMI is as follows:
Personal Loan EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Here,
EMI stands for Equated Monthly Instalment. P denotes the principal amount, and R is the monthly interest rate. And the loan repayment period (in months). EMI-calculating tools are available online. They can also be used for the same thing.
What are the essential documents to get an instant personal loan?
You will need the following documents:
- A passport-size colour photograph
- Personal Loan Application Form
- Photo Identity Proof
- Residence Address Proof
- Signature Proof
- A salary slip and income tax return form if the individual is employed
- A self-employed individual must submit business proof. They can also give clearance certificates, income tax challans, two-year income tax returns, and balance sheets
How to apply for a personal loan?
The application process for an instant personal loan is simple:
Step 1
The initial step is to determine your eligibility.
Step 2
Fill in your personal, financial, and professional information.
Step 3
Then you have to select the loan amount and term that you require. This is needed to get an instant approval for the loan. And you can choose the EMIs to select your loan plan.
Step 4
Upload the necessary documents, including KYC.
Step 5
The funds will be deposited quickly into your account within 24 hours. This will be done once your application is accepted.
How can one improve their chances of getting a personal loan?
A good credit score helps you get approved for a personal loan. Rebalancing your debt and income is vital. This is because lenders check your debt-to-income ratio when you apply for personal loans. They want verification of your income. An applicant for a personal loan may choose a guarantor with a high credit score. Their primary goal is to ensure that you will pay back the loan. You can improve your chances of getting loans by minimising your borrowing.
Conclusion
Instant personal loans have helped many people. Especially during the hardships of the pandemic. The online procedure has made the process more accessible. And instant personal loans provide financial support within minutes.
One of the right steps in taking a personal loan is choosing the right lender. Piramal Finance offers you a chance to get answers to all your questions. You could use their EMI calculator on their website. It will help you calculate your EMI and understand it in detail. Read more about financial products on their website.