How to Get an Instant Personal Loan Online

What are Personal loans?

Personal loans are a type of unsecured loan where the candidate isn't required to reserve any assets as collateral. These personal loans are offered based on the credit score of the candidates, which represents their creditworthiness.

These loans can be obtained online by individuals facing financial emergencies without the hassle of complex paperwork and tedious procedures. Today, many banks and non-financial institutions offer personal loans online that can be availed of instantly.

How to Get an Instant Personal Loan Online?

Follow the steps below to get a personal loan online within minutes.

Identify the Purpose of a Personal Loan

The first step is to understand why you wish to take a personal loan. Assess your financial needs to identify the amount you need to borrow and the EMIs you will be paying.

Review Your Credit Score

Your credit score plays a crucial role in determining whether you get a personal loan or not. A high credit score helps you obtain loans quickly at competitive interest rates with better terms. If you have a bad credit score, then focus on improving it before applying for any personal loans.

Check Eligibility Criteria

Every lender has different eligibility criteria for offering personal loans. Check if you fulfil the eligibility criteria of the lenders before applying for personal loans with them. This is essential as getting loan applications rejected leads to a fall in your credit score.

Choose the Loan Amount & Tenure

Borrow only what you need and can repay. Choose a loan amount and tenure that satisfy your financial requirements. If you choose a higher loan amount with a longer tenure, you will be charged higher interest rates.

It is recommended to stick to the amount you need and pick a tenure within which you can comfortably pay off your loan.

Keep Your Documents Ready

Inaccurate or incomplete documentation is one of the main reasons why personal loan applications are rejected or delayed. To avoid this, find out the documents required and prepare them before applying for a personal loan online.

List of documents requested:

• Identify Proof
• Address Proof (Adhaar card, PAN card, passport etc.)
• Income Proof (Utility bills, voter ID, driving License)
• Employment proof or business details
• Passport-size photographs

Compare Lenders

Different lenders charge different interest rates on personal loans. Compare the interest loans, loan amount and tenure offered by different lenders to identify whose offer suits your financial needs and decide with whom you want to apply for a loan.

Visit the Online Portal

Once you’ve decided who you wish to obtain a loan from, visit their online portal or download their mobile application. Fill the personal loan application form with accurate information. Attach the necessary documents and submit the form.

Read the Terms and Conditions Carefully

Read the fine print and the loan terms carefully before signing the agreement. Loan agreements are usually filled with technical jargon, so take your time to understand what terms you are agreeing to.

Receive Funds in Your Bank Account

Once all verification is done and your loan is approved, the loan amount will be directly transferred to your bank account within 24 working hours.

Plan Your Repayment Strategy

Getting a loan is easy, but repaying one may be difficult. Many people struggle with paying their EMIs on time and end up with penalties. Not paying your dues on time will drag down your credit score.