With the advancement of technology and growing internet penetration, the financial industry has transformed completely. From making payments to taking loans, everything has gone digital. Even getting a Personal Loan online is much easier and quicker.
Meanwhile, the number of lenders offering Personal Loans online has increased significantly. Everyone is jumping on the digital bandwagon, from traditional lenders to the new-age FinTech companies, to make life easy for the end customers.
Nowadays, you can get a Personal Loan online in a few minutes. Thanks to new-age lenders like Clix Capital, who can offer an instant loan online in as little as 15 minutes.
Not only does the ease and convenience of getting a Personal Loan online make a difference to the borrower, but it also helps the financial institution to stay relevant and succeed.
Unfortunately, despite high smartphone and internet penetration, many people still believe that applying for a Personal Loan online is tedious, and they hesitate to do so.
In this article, we will talk about simple steps to make it easier for you to apply for personal loans online without hassles.
What do you need to do Before Applying for a Personal Loan Online?
New-age lenders have made the lending process easy; with a little effort from your end, the process can become hassle-free. Before applying, have the following sorted:
- Understand your financial requirement and repayment capability
- Collect basic essential documents
- Narrow down on a single lender
- Check the eligibility criteria
Understand your need and Repayment Capability
This is the first and most critical step you must evaluate yourself. Be clear about the loan you require and can easily repay. Don’t opt for too much because that can get difficult to repay. Don’t opt for too little, as that will require you to apply again for top-up loans. For instance, a Personal Loan for a holiday will be significantly lower compared to a Personal Loan for your higher education. Use financial tools such as EMI calculators to understand the exact outflow of funds.
Collect Basic Essential Documents
Every lender will require fundamental identity and KYC documents to process your loan application. This list is more or less the same for all lenders. Having all your documents in place before applying for a loan is imperative because incomplete applications or outdated documents can lead to outright rejection, impacting your credit score.
- Duly filled application form
- Identity proof – Aadhar Card, PAN Card
- Recent passport-size photograph
- Address proof
- Income proof
For a smooth loan application experience, ensure that all the documents required for a Personal Loan online contain correct information.
Evaluate Multiple Lenders and Narrow Down on One
Every lender offers a different interest rate and has its terms and conditions. See the one most favorable for you. Don’t go just by the interest rate. There are a lot of other factors to consider, such as ease of disbursal, foreclosure charges, processing fees, late penalties, tenure flexibility, etc. After assessing all the options available, choose the one that suits your financial needs and repayment capacity best.
Check the Eligibility Criteria
Like documentation, the personal loan eligibility criteria are also more or less the same across lenders but be sure to check this before applying as you don’t want a rejection. The amount available to you and the interest rate may vary based on your monthly income, credit score, and other ongoing loans.
- What is the minimum and maximum age bracket to qualify for a Personal Loan online?
- What is the Maximum Personal Loan Amount you can apply for?
- What should be your credit score?
- Do you have any existing ongoing loans?
- What is your net monthly income, and how long have you worked?
- What is your nationality?
If the answers to these questions are in accordance with the lender’s requirement, you stand qualified for a Personal Loan.
Once you have the above sorted, follow these three steps on your lender’s website and get an instant loan online.
How to get a Personal Loan Online in Three Easy Steps
Personal Loans have been made super easy, even for many first-time Personal Loan applicants. It is quick and very convenient.
Step 1: Fill out the online loan application form
This is the first step to kickstart your loan application. The form is intuitive and easy and will barely take a couple of minutes to fill out. You will have to enter basic information like your name, number, email ID, and desired loan amount.
Step 2: Upload documents
The second step will require you to upload documents that corroborate your creditworthiness. Since you have already collected these documents, uploading them will be another hassle-free step in the loan application process. Upload your income, identity, and residence proof and move on to the next step. After you upload documents, the lenders check if you have met their eligibility criteria. Since you had checked and met the eligibility criteria before applying, the approval should be seamless.
Step 3: Accept the offer and activate e-mandate
Some new age and technologically advanced lenders verify each item as you upload it in real-time. Once they have the loan application form and supporting documents and authenticate that you have met the eligibility requirement, your loan will get approved. You will receive an SMS or notification that gives you your loan status. Once the loan is approved, you must accept the offer by e-signing the loan agreement. Soon after the acceptance, the lender will initiate the disbursal process, and they will transfer funds to your account number shared by you.