Financial emergencies come unannounced and access to a suitable credit option can help manage such situations without hassles. In this regard, instant personal loans can be a favorable option as it possesses all the characteristics to tackle such situations.
Owing to the list of borrower-friendly benefits, this financial product has garnered quite a following, as evidenced by its rapid growth. In April 2021, RBI reported that this credit instrument registered a 12.6% growth compared to 12.3% of the previous year.
Besides its usage benefits, ease of application and faster disbursal also amplify its popularity.
How to apply for a personal loan?
Following is an overview of the application process of a personal loan –
- Visit the official website of the lender.
- Navigate to the loan application form.
- Fill up the form with relevant details and wait for the approval.
- After initial approval, submit the required documents.
- Get final confirmation via official communication channels and receive the loan amount in the bank.
The introduction of online applications has transformed the instant personal loan application process and made it more convenient. However, to complete this process without hassle, one needs to clear the eligibility parameters.
Eligibility parameters of personal loans
Here are the personal loan eligibility parameters to comply with before applying for the credits –
- Age: 20 to 60 years
- CIBIL score: More than 750
- Employment Type: Salaried employee at an MNC, public or private company
- Monthly income: Depends on an applicant’s city of residence
A point to note here is that these are some essential criteria and financiers may set specific requirements, which applicants need to meet. Additionally, one needs to submit the required documents to complete the application process for an instant personal loan.
Documents required for a personal loan
- KYC papers
- Employee ID card for salaried individuals and business-proof such as ownership deeds for self-employed individuals
- Income proof, i.e. salary slips of last two months
- Bank account statements for the previous three months
Besides these, if a financial institution asks for any additional documents, applicants need to submit them.
Along with noting the application process, eligibility criteria, and documents, prospective borrowers should also review some pointers to make a knowledgeable decision.
Points to ponder before making a personal loan application
- Interest rate
Since interest payment is the primary requisite of any debt, it is vital to review it before applying for one. In this regard, borrowers can compare interest rates from various lenders and find the most suitable offer. They can take the assistance of a personal loan calculator for this purpose before applying for a loan.
- Loan tenor
Since the loan tenor decides the EMI amount, being calculative is imperative while selecting it. The trick here is that a longer tenor may reduce EMIs, but it will increase the total interest outgo. Whereas, with a shorter tenor, installments are higher, but the overall interest payment is lower. Therefore, one can use online calculators to find a solution that will be suitable for them.
- Repayment options
Another important point to assess here is the repayment options. It relaxes the loan payment process and helps debtors to pay conveniently. Hence, before applying for a personal loan, one should check for a lender that extends such facilities.
Here, they have the option to choose part payment or foreclosure, where they can make lump-sum payments to reduce their overall burden. Additionally, they can use online calculators to find personal loan EMIs.
- Additional costs
Be it instant personal loans, or any other mode of credit, they all incur some additional costs, namely, processing charges, legal fees, etc. Failure to calculate them can increase the total cost of borrowing and the overall financial burden.
- Convenience of pre-approved offers
Pre-approved offers aid to expedite the loan application process and save time. Leading lenders like Bajaj Finserv provide this facility on several financial products, both secured and unsecured loans. Individuals can check their pre-approved offer by submitting their essential contact details.
Along with these pointers, prospective borrowers should also curate a repayment plan that can assist them in paying off debts without hurdles. They can also learn about ways to manage debt for a better outcome.
Instant personal loans offer a convenient financing option that comes with a faster disbursal and no-end usage restrictions. Thus, meeting any emergency expense is not a challenge anymore.
You can of course avail a shorter processing time with Bajaj Finserv’s pre-approved loan offers on their various products, including personal loans, home loans, credit cards, and more. You can check your eligibility by submitting your name and contact details on their online portal.
