How to Get Instant Personal Loan Online
Have you ever thought about taking a personal loan? Or, let me put it this way, are you thinking of taking a personal loan? If yes, then you have come to the right place. Getting a personal loan is one of the most constructive financial steps you could do in your life. In this article, we have covered everything that you need to know about getting instant personal loans online.
If you are thinking of getting a personal loan for the first time, we understand how overwhelming the idea might be to you. We understand that you must be confused about where to start. But with this ultimate guide to get instant personal loan, you are sure to gain a perspective on the concerned matter.
What is a personal loan?
A personal loan is an ‘unsecured debt’. Unlike other loans, a personal loan does not require collateral. Wondering what collateral means? Well, have you ever seen or heard people giving up their vehicle, or house or anything of great value because they could not repay their loans? That is what is meant by collateral. It is anything that is given as a security assurance when someone fails to repay their loan to the bank.
Personal loans can be used for almost anything, such as a wedding, investing in your child’s education, buying a nice and cosy home, or renovating it. Getting an instant personal loan generally requires a good credit score or a good CIBIL score.
A CIBIL score is a three-digit number that determines your credit score—still confused? Well, let us see what exactly a CIBIL score is.
Impact Of CIBIL Score in Getting Instant Personal Loan Online
In order to get instant personal loan, one should have a score above 750. Scoring this much ensures hassle-free loan approval. The CIBIL score is determined by looking into your credit card history. The vital things that the lenders usually look for are:
- Timely payments of bills
- Timely payments of instalment of loans
- Maintenance of the regular payment period
In case you get a bad CIBIL score, or, are a CIBIL defaulter, you might face some challenges. It is usually observed that a person having a bad CIBIL score does not get a loan approval right away. However, that does not mean that a CIBIL defaulter will not get a loan at all. There are ways through which they can improve their scores to get instant personal loan online. We will discuss this segment in detail further in this article.
Personal loans usually have fixed terms and fixed interest rates. This means that an instant personal loan is set for a short period of time. Ranging from one year to five years, the payments are deducted timely from your bank accounts.
In order to determine a genuine lender, you must look into the interest rates of the loan. The interest rates in any personal loan do not fluctuate with time. They stay the same. No matter how long it takes a person to repay the loan, the interest rates remain unchanged.
Loaney is an online platform where you can get instant personal loans online. It is an online platform where you can apply for a personal loan instantly. Loaney offers convenient methods for instant loan approvals. Just like any other private loan lender, Loaney does not ask for any collateral or guarantors. They keep every information regarding their clients confidential.
Loaney offers a complete digital platform to their clients for filling out the application forms to get instant personal loans online. They believe in keeping minimum documentation and minimum interest rates on loans.
Now that we know what personal loans are, there must be some more information that might come in handy while you plan to get instant personal loan. Let us look into all the points you need to know about getting instant personal loans step by step in detail.
How instant personal loans work in general?
In the above segments, we briefly discussed how personal loans work in general.
Now, let me give you a detailed description of it. As stated above, a personal loan is an unsecured debt that does not demand any collateral in return. Now, requiring no collateral makes a personal loan a little bit risky for the lender. Hence, they are provided upon a thorough investigation of a person’s credit score.
A personal loan is a great way to meet the financial shortcomings that a person may face in their household. Be it a house, a car or any education, a personal loan can take care of any financial need. However, there are some procedures that need to be followed by a customer in order to get their loan approved.
Here is a step by step procedure to know how you can get an instant personal loan.
Filling of Application Form
The very first step is to fill out an application form. The application form consists of various fields which require different information related to the client. The information may vary according to the loan the client is taking. Such as:
- Personal Details of the applicant consist of fields like the applicant’s permanent address, contact number, marital status, current residential details, and many more such information.
- Employment Details include whether the applicant has a full-time job or a part-time job or is pursuing their education, details of the employer, current salary, etc.
- Self Employment Details are required when the applicant is not associated with an organisation in which case, details of their own business will be required.
These are some general information required to fill out an application form to get instant personal loan.
Approval of the loan application
After the applicant fills out the application form, the form is sent out for approval. The lenders look for the applicant’s CIBIL score. We have discussed above what a CIBIL score is. It is the credit score allotted to a person . This credit score is baked on the applicant’s history of payment activity.
CIBIL scores are a three-digit number ranging from 300-900. 300 is the lowest score, and 900 being the highest score. Any person having a CIBIL score of 750 and above can get instant personal loans approval.
However, there are cases where people with low CIBIL scores apply for a loan. These people are often categorised under CIBIL defaulters. Their loan approval usually takes a little more time than usual. In order to obtain a good CIBIL score, some organisations help with the procedure of increasing your scores.
Once your CIBIL scores are at par, loans will get approved instantly.
Processing of your instant personal loan online and repayment with interest
Once the loan is approved, the applicant gets their loan money transferred wherever they want to after which, they will have to repay the loan in monthly instalments along with a fixed interest rate. The duration of the instalments and interest rates depends on the amount of money they’ve applied as a loan.
What can an instant loan be used for?
As we discussed, an instant loan can be used for almost any purpose. However, some of the major reasons as to why people take personal loans are:
To buy a house.
Over the years, buying a house has been one of the people’s top priorities. Buying houses has always been an expensive affair. Even people with good financial situations do not buy houses without taking personal loans. Hence, taking an instant personal loan is very beneficial in buying a house.
Credit card debt refinancing.
Many people get stuck with credit cards that come with high-interest rates. This results in increasing debts on credit cards. Hence taking a personal loan ensures a fixed amount of monthly payment.
Medical bill payment.
In times as challenging as during a pandemic, medical expenses in almost every household have seen a sudden rise. While most of us have been spared, there have been many people who have been hard hit by enormous medical bills reaching up to several lakhs. Paying those bills right away is not a feasible option for everyone, and hence instant personal loans can be a big boon.
Buying any vehicle.
Owning a vehicle nowadays is a vital necessity. While many big cities have good and affordable public transport facilities, the regional cities seem to have lesser amenities. Hence, it is vital to have at least one vehicle that can serve as a convenient mode of transport. Then again, buying a vehicle, especially a car can be expensive. Hence it is wiser to buy a car using the money borrowed from a loan.
Weddings all over the world are expensive. What is a wedding when it’s not set in an exotic location amassing different events? All this sums up to the fact that the bigger a wedding gets, the greater the expense incurred. Hence, families who cannot pay for the entire wedding right away take personal loans and then repay the bank through EMI.
These are some of the many reasons why people choose to take personal loans from banks or any non-banking organisations.
How to get an instant personal loan online?
With Loaney, there are a few easy steps that you have to follow in order to get an instant loan online. The first and most essential step is to fill out an application form. Fill in the details carefully and then the form will be sent out to the lenders for approval.
The next step is followed by approval. The approval process may take about 10-15 minutes in online portals such as Loaney. Also, in order to get faster approval, the applicant’s CIBIL score is required to be good.
A good CIBIL score is anything above 750. Anything under 750 is considered a medium and poor score. Such a score can lead to the rejection of the loan application.
Online portals that give instant personal loans work similarly to traditional methods in some areas. In cases where people apply for big loans, their monthly incomes are monitored along with their expenditure.
Eligibility Criteria to apply for an Instant Personal Loan.
The initial criteria that the lenders, as discussed above, look out for are the applicant’s monthly income. The loan amount that gets sanctioned in applicant’s favour has a lot to do with the monthly income they make. In normal procedures, the minimum monthly income of a person has to be somewhere around 25-30k.
The next eligibility criteria is the CIBIL score. When applying for a loan, it is extremely important to keep a vigil upon your expenditure patterns. It is vital that one spends only 30% of their monthly income in order to maintain a good CIBIL score. Payments done in time add up to the good points too.
Having a good CIBIL score lets the loan pass in no time. This score ensures the lender that the client is willing to repay the loan well in time.
A person should be above the age of 18 in order to apply for loans in India. And the person’s details that are filled on the application form should be accurate and genuine.
The source of income plays a crucial role in the eligibility criteria for instant personal loans. Only certified or approved income sources from verified organisations are accepted as proof of income.
Benefits of choosing Loaney.
There are several reasons why one should choose Loaney. They are:
- Loaney provides the fastest instant personal loans at low interest rates.
- The information of the client is confidential. Once you trust Loaney, they will not let you down.
- A proper schedule of payment along with the interest rate per month is pre-generated. This avoids confusion regarding the payment.
- Good customer support is a vital part of running any organisation. Hence, Loaney ensures that their clients are always under the guidance of top-notch customer support.
- The system is built in such a way that procedures are easy, fast and efficient. The work is done fast and the registration is hassle-free.
- Work is done online.
- All legal protocols are followed with all authenticity.
- Clients do not have to stand in a long queue and can apply for a loan from the comfort of their home instead.
- Loaney is absolutely trustworthy and there are no hidden protocols or charges that come with using their services. Everything they do is transparent.
- The best feature about loaney is that they give out small loans. Loans upto ₹20,000.
In this digital era, banking and everything related to banking has seen a sudden rise. People are starting to invest money in safe spaces and are making detailed financial decisions. All this is because of the convenience a digital platform provides. Everything is just a click away now.
Moreover, the reach within people has increased more with time. Thanks to the digital India campaign. Hence, online platforms such as Loaney have brought the comfort of taking loans into our homes. Just as it is wise to take personal loans for big expenditures, it is equally important to research which platform to trust among a thousand others.
Hence, Loaney is a one-stop solution for all your small loan related problems.
How to get approval for a personal loan?
The approval for your personal loan depends on the following factors:
- CIBIL score
- Monthly income
- Payment clearance of previous loans
- Your expenditure pattern.
What is the best way to apply for a personal loan?
The very first step in applying for a personal loan is to research the amount of loan that best suits you. For people who have a good CIBIL score, the usual way would be fine. For those who do not possess a good CIBIL score, they can open a new account following which they can start their enquiry processes.
What credit score do I need for a personal loan?
The minimum credit score needed to get a hassle-free personal loan is 750 or above. Anything below that is not considered a good CIBIL score or credit score.