In times of financial emergencies, personal loans come as the best financial solution. They are easy to avail, offer ample loan amounts, and have flexible repayment terms to keep the finances manageable. Besides that, they are collateral-free, so one can avail of them without pledging an asset as security.
These days, NBFCs have streamlined the loan application procedure as one may complete it 100% online. Gone are the days when applicants had to visit the lender’s office several times and wait for days to get their loan approval. With digital loan processing systems, applying for a personal loan has become as easy as this 5-step procedure.
- Checking the Credit Score and Eligibility Criteria
Before applying for a loan, the applicants must ensure they are eligible. Most lenders have eligibility conditions regarding the applicant’s age, income, employment, debt-to-income ratio, and credit score. Checking the lender’s minimum requirements and ensuring their fulfilment is the first step before proceeding with the application procedure.
- Filling Out the Online Application Form
When comparing credit card loan vs personal loan, getting a personal loan is much easier and faster. Visit the lender’s website and find their online application form to apply for a loan. The form often includes information regarding the applicant’s identity, employment, and bank account. Fill out each detail carefully and double-check before submitting the application.
- Submitting the Documents and Verifying Online
Applicants must submit a few necessary documents to prove their identity, residence, and income. These include the applicant’s Aadhaar card, PAN card, bank statements, salary slips, etc.
NBFCs that support 100% online loan procedures do not call applicants to their offices to submit the required documents. They accept scanned copies of the documents uploaded through their website. Applicants who have updated their KYC documents are verified almost instantly and receive loan approval.
- Accept the Loan Offer
The lender determines the applicant’s loan amount and interest rate based on income, DTI ratio, and credit rating. They expect the applicants to have a regular income, fewer financial obligations, and a high credit score. If the applicant is happy with the loan amount and the interest rate, they must accept the loan offer and digitally sign the loan agreement. They may get the loan amount in their bank account within 24 hours of accepting the loan offer.
- Activating the e-Mandate
Looking at the repayment terms when comparing personal loan vs credit card, an applicant may choose a more extended repayment term with personal loans. Most NBFCs allow their borrowers to select their loan tenure according to their repayment capacity. Depending on that, the lender determines their EMI amount. The repayment term starts immediately after accepting the loan offer. Borrowers may consistently manage their finances and improve their credit scores by paying the EMIs. Activating the e-mandate is an excellent way to ensure timely payment automatically from their bank account each month.
Applying for a personal loan is pretty straightforward with these five simple steps. With easy access to personal loans, individuals can cover their expenses quickly and repay conveniently without stressing their finances.
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