Applying for loans can sometimes seem like a very intimidating process. There used to be times when applying for personal loans was all about standing in long queues until you got your turn to file the application after hours of waiting. However, the scenario has changed a lot more since the introduction of online portals for money lending.
To know more about how to get instant personal loans online, stay with us till the end. We will provide you with an easy, stepwise guide to applying for personal loans
Table of Contents
What Is A Personal Loan?
When people decide to make significant investments, we often hear them talking about applying for personal loans. Personal loans are nothing but the amount of money that you borrow from certified lenders to use the amount for various purposes.
The money for the loan can be borrowed from any bank, verified online lenders, and credit unions. When you get an instant personal loan in India, the amount borrowed for the loan can be used for many investments that require a large amount of money, such as home renovations, weddings, buying a dream car, etc.
However, the money borrowed must be paid back to the lender with some pre-defined interest rates. These interest rates do not change with time. Therefore, once you apply to get an instant personal loan, some interest rates will be applicable along with the repayment. The tenure for the reimbursement will be decided based on the amount of money borrowed. Usually, the duration for repayment is from three to five years for small loan amounts, and for massive amounts, the period for refund is five to seven years minimum.
About Loaney
Loaney is an online platform from where you can get instant personal loans in no time. With an easy registration process and hassle-free loan approval, Loaney can help you with getting your loan approved instantly.
Personal Loan: An In-Depth Understanding
When you get an instant personal loan in India, the money can be used for spending on personal expenses. As stated above, that these amounts are then repaid to the banks or the certified lenders from whom you have borrowed the money. Not only this but the money can be paid back in instalments.
While you can use the money for a personal loan for everything, some lenders restrict the fields where you can use the money you have borrowed from. Suppose, you borrowed an amount of 10 lakhs and you wish to use this money for paying your education fee. However, the lender restricts you to use the money for fee payment because of various reasons.
Hence, it is better to look for lenders who would not ask you the purpose for applying for a loan and rather would focus on how you wish to repay it. Some more areas where you can use personal loans are
- To pay medical bills
- To pay for school or college fee
- For investment in an asset
- To repay debts, etc
Applying For A Personal Loan
Firstly, applying for a personal loan is not as difficult as it seems. Once you take the first step, i.e, applying for the loan, after that the entire process just becomes clear. However, let us still walk through the process of “How to get instant personal loan”.
To get an instant personal loan in India, you must first register yourself. Now, registering for a loan in banks is a common process that everyone knows. However, we will emphasize more on the process to get instant personal loan online. So, the first step to applying for an instant personal loan is the registration process.
The Registration Process
- The registration process usually consists of an e-form that the user needs to fill. The form contains various fields to fill your general as well as personal information.
- The general information usually asks for details like your name, father’s name, your permanent address and the address you currently live in along with a few more information.
- The form for the personal details asks about your profession, income, PAN card and Adhar card details, and the amount of money needed for the loan.
Application Process
- Once you register for the loan, your account on the concerned online portal is created immediately. You can use this account to view all the information regarding your loan application.
- The application process is a verification step in which the user has to feed the information regarding their loan in the fields. The form is very similar to that of the personal information form that you filled in the registration process, but a little more detailed.
- After you complete filling the application, the forms are sent to check your CIBIL score. The details regarding the CIBIL score is discussed further in this article. Keep reading!
Identify Your Needs
When you apply for a loan, you need to have a clear picture in your mind about why do you need the loan. You should be specific about what do you want to spend the money on. It all comes down to the part where you should learn to identify your needs.
Spending mindlessly on insignificant investments should be avoided. The money you spend should be on essential needs, such as paying your medical bill, or education fee, etc. the next step followed by this is to look for your credit scores.
Before you apply for loans, sit with your bank statements and see if the bank would willingly grant you a loan. Read the approval criteria for your loan carefully and determine whether the purpose of your loan is convincing enough to get the amount approved.
To cut a long story short, when you apply for a personal loan from any lender, make sure you set your mind on spending the amount on something essential rather than taking a loan to get bizarre things. Before you apply for personal loans, you must understand that these are serious transactions and might cost way more than a fortune if not used wisely.
The Documentation Process To Apply For A Personal Loan
The documentation process to get an instant personal loan online is not very vast or chaotic as people might think. The documentation just needs a form that has your personal information and a few copies of your Adhaar card, PAN card and a valid official ID (if needed to prove your working status).
However, since we are focusing on how to get instant personal loan online, we will stick to making digital copies of the documents needed for the verification process. These documents are to be uploaded on the website following the instructions that are given.
In some portals, the documents should be of a certain size and in some portals, the format of the document should be maintained. Read the instructions for documentation carefully before you proceed.
The Approval Process For The Instant Personal Loan; Checking Your Eligibility
Before proceeding with any step for approval of your loan, the first thing you should do is to check the eligibility criteria. See to it that you are eligible for the loan before you apply for it. To get an instant personal loan in India, there are certain criteria following which you will be eligible to apply for personal loans. To name some criteria,
- The person should be above the age of 18
- They should be permanent citizens of India
- They should have a valid PAN Card and Adhaar card
- They should not hold a criminal background
- They should have a CIBIL score above 750.
Significance Of CIBIL Score
- What is a CIBIL score?
CIBIL score is a three-digit number that determines your credit score. It is essential because depending on your CIBIL score, your loan will be approved. There are different ranges of a CIBIL score that determines how fast your loan approval process will be.
The scores are decided based on your transaction history. Everything regarding your transaction pattern is kept under vigilance such as timely payment of bills, timely payment of the loan, what are the things that you spend in, your savings etc.
- How does CIBIL score affect the approval process?
The CIBIL score determines will your loan be approved or not. Firstly, the CIBIL score above 750 will ensure that the loan will be approved in no time. Anything that is below the score of 750 may pose a problem.
There are different categories of CIBIL score, ranging from good CIBIL score to bad CIBIL score, one must maintain the to show that they have a stable transaction pattern.
- How to get loan approval for a low CIBIL score
For people who have low CIBIL score, the solution is to look after the transaction histories. Spend mindfully and improve your CIBIL scores.
Another way out is to have a fresh account made and make sure to maintain your transaction history in that account. Do not spend more than 20-30% of your salary and save the rest and maintain timely payment of bills.
Loaney: Instant personal loan benefits
- Loaney gives immense benefits when taking a personal loan. The first and the foremost benefit is that your loan gets approved in an instant.
- When applying for a personal loan, Loaney does not dement any collateral or guarantor. The loan approval is very hassle-free.
- You can track your approval process and everything regarding repayment of the instant personal loan just by logging in to the website.
FAQ
Q. how long does it take to get approved for a personal loan.
Ans. Getting approved for a personal loan does not take much time. Especially with Loaney, the approval is almost instant.
Q. Where can a personal loan be used
Ans. A personal loan can be used in many places such as
- Paying your medical bill
- Buying a new car
- Buying a house
- Renovating a house
- Wedding expenditure
- College or school fees
- Big travel expenses, and much more.
Conclusion
Applying for instant personal loans online might seem overwhelming sometimes. In this step-by-step guide, we have covered almost everything that you need to know about instant personal loans.
A point to ponder is that once you decide to apply for a loan, make sure your CIBIL scores are up to the mark and then your loan can be approved almost instantly.