New Delhi (15/10/2022): In the age of technology, where every work is made possible from the comfort of your home, applying for a personal loan has also taken a leap into it. Now you don’t have to worry about visiting the bank to take a loan, as you can apply for one online in just a few seconds!
What is a personal loan?
A personal loan is granted by the bank to an individual without the need for a security or collateral in return. Individuals can employ such loans to buy a car, invest in real estate, and more. However, the amount should be repaid in accordance with the terms and conditions provided by the bank.
Why apply for a personal loan online?
A personal loan is a versatile loan that helps you secure funds to meet your financial obligations. However, if you follow the traditional process of taking a personal loan offline, it can be time-consuming. Not only is visiting different lenders a hassle, but you may also end up waiting for long periods to present your application to them. The entire process eventually leads to a delay in the amount getting credited to your account. On the other hand, if you apply for a personal loan online, you can get your application processed from the comfort of your home.
Additionally, online applications are quick and require significantly less paperwork, making the process smooth and stress-free. Another benefit of applying for a loan online is that you get to compare the offers from different lenders easily and then choose the most suitable option. You can also check personal loan online eligibility calculator and research the variety of personal loans available. Let’s see the types of loans you can avail.
Types of personal loans
Let’s take a look at the various types of personal loans granted by the bank:
- Secured personal loans: This kind of loan can be drawn from a bank against a collateral or a guarantee. You can keep any asset, such as gold jewellery or your house property as a collateral for the same.
- Unsecured personal loans: In this type of loan, banks do not ask for a collateral in return. However, you need to have a higher credit score when opting for such loans. A CIBIL score of 700+ is considered a good score.
- Debt consolidation loans: This type of loan can assist you in closing your previous loans. It combines all your existing debts into one loan allowing you to repay the amount at a lower interest rate. This way, you also don’t have to keep a tab on various payment deadlines and can track your repayment at a single place.
- Fixed-rate loans: In this type of loan, the rate of interest at which you borrow remains the same until repayment.
- Variable rate loans: For such loans, you are likely to pay a varied amount to the bank due to fluctuations in the standard rate of interest.
- Co-signed and joint loans: If, while borrowing a loan from the bank, you are not able to meet the eligibility criteria, then you can apply for a personal loan along with a partner (who has an eligible credit score).
How to apply for a personal loan instantly online?
Are you wondering how to apply for a personal loan? Then end your search here; apply for a personal loan now from the comfort of your home. Before you should also check documents required for personal loan
Here are the steps which you’ll need to follow while applying for a loan online:
- You can begin by visiting the online portal of your desired bank
- Once you are on the webpage, click on the ‘Apply For Loan’ option.
- An application form will automatically roll out, where you will be required to fill in your details. (This may include your personal as well as financial details, and even payslips of the past 2 or 3 months)
- On completing the formalities, you will receive an OTP on your registered mobile number.
- After you have entered the generated OTP, you will need to enter your KYC and salary details.
- Lastly, enter the amount of loan you’d like to borrow from the bank and submit the form.
- After submitting the application, you will receive a call from the bank to confirm the loan and walk you through further instructions and formalities.
Once the bank is satisfied with your application and confirms that you have fulfilled the criteria, you will likely get the loan immediately.
Individuals draw loans for various purposes. In today’s time, applying for a personal loan online is an easy and hassle-free task. Reputed banks now allow you to draw loans without worrying about strenuous documentation, thereby saving time and effort. But make sure to opt for sites that are legitimate in order to secure your information.