Personal loans have found favour among many individuals as a convenient funding option primarily because of their hassle-free application process and limited documentation requirement. According to a survey conducted by CIBIL, the volume of origination in the personal loan category grew by 134% year on year as of 2019.
Considering such growing popularity even in the backdrop of a nation-wide economic slowdown, financial institutions are also offering additional benefits. For instance, borrowers can apply online for a personal loan and avail it without leaving their home. Furthermore, some lending financiers also provide facilities such as availing a personal loan without documents to their existing customers.
Online loan application procedure
Today, several lenders are providing instant personal loans without you having to leave the convenience of your home. Most of these options require you to apply online to proceed. Individuals can thus easily avail a personal loan from their home by following the simple steps below –
- Compare lenders –
Before you take an instant loan, you must compare the interest rates and other related costs on personal loans being offered by different lending institutions. It will enable you to make an informed decision and opt for the best deal in the loan market.
One can also use a personal loan EMI calculator to compare the available options and select the most affordable one. To use the calculator, they need to enter the following details –
- Loan amount required by the borrower
- Interest rate applicable
- Preferred repayment tenor
Based on the above details, the calculator will compute the total loan liability payable, total interest payable, and the EMIs. Borrowers can increase or decrease the loan amount and tenor options to arrive at a suitable EMI that fits their repayment capacity.
- Visit the lending institution’s website –
Once you have compared loan offers and different interest rates and decided on a lender, you need to visit the selected financial institution’s official website to follow the process of how to apply for a personal loan. If you are an existing customer of a financial institution, you must also check for any pre-approved offers that will allow you to avail a personal loan without documents.
- Fill in the application form
Go to the personal loan section on your lending institution’s official website to access the online loan application form. Enter the following details in the application form –
- Personal details such as your name, contact information, address, email ID, etc.
- Employment details like name of the company and years of service.
- Financial details like monthly salary, an additional source of income if any, and so on.
- Submit the application form along with documents required
Submit the application form after you have filled in all the requisite information. However, before submission, verify the information to make sure that there are no errors. Lenders may reject your application form if it carries any errors or if any information is unverifiable. After a recheck, submit the loan application form along with the necessary documents.
The list of documents required during the personal loan online application procedure is as follows –
- KYC documents – Aadhaar card, Voter ID card, PAN card, driving license, etc. When availing a loan from your home, make sure to look for a lending institution that accepts digital KYC for hassle-free processing.
- Income and employment documents – Salary slip, bank account statements, employee ID card, etc.
Some financial institutions such as Bajaj Finserv bring pre-approved offers to existing customers, which allows them to apply for a personal loan without documents. However, new customers are still required to provide all the documents while applying for a loan.
Besides personal loans, such pre-approved offers can be availed on other unsecured credits also, such as business loans, credit cards, etc. You only need to enter a few essential personal details to check your pre-approved offer.
Nevertheless, personal loans are unsecured credit; therefore, the interest rates can be quite high as compared to secured advances. Hence, you should know the factors affecting personal loan interest rate. Also, you can opt for the following measures to get a competitive personal loan interest rate –
- Take measures that help improve your credit score.
- Lower your debt to income ratio by paying off debts.
- Look out for seasonal offers.
- Leverage your employment credentials for interest rate negotiation.
Nonetheless, borrowers should check out the eligibility conditions set by the lender along with applicable fees before applying for a loan. They must also keep the documents required handy to experience seamless processing of personal loans from the comfort of your home.