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How to Apply Personal Loan Online in India?

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How to Apply Personal Loan Online in India?

A personal loan is an unsecured (without collateral) loan that can be used by the borrower for any purpose. These loans are the most popular kind of loans in the market, as Applying for Personal Loans and their eligibility criteria are very easy-going for borrowers.

Read on to find out about How to apply personal loan Online in India.

When can you apply for a personal loan?

 The best benefit of personal loans is that they do not have any restrictions on where they can be used by the borrower. Being a multipurpose loan, the borrower can use the amount on:

  • For Home renovation:

The borrower can use personal loans to fund the repair and renovation of their residential or even non-residential properties. This is a popular choice as many home loans cover the amount of buying a home and not renovating it.

  • Education:

While education loans exist for students pursuing higher education. They might be limited; meanwhile personal loans can help mitigate the further need for capital while pursuing higher education.

  • Wedding:

Indian weddings are massive financial burdens; however, it is the dream of many to have an elaborate wedding celebration. Personal loans can help mitigate some of the burdens of Indian Wedding finances.

  • Medical Emergencies:

While special medical loans exist personal loans are much quicker to obtain in times of emergencies with minimum documents.

  • For Traveling:

With the value of the Indian Rupee declining, a trip to foreign locations has become more expensive. A personal loan for traveling and holidays can help mitigate the issue of spending huge capital at once for these holidays.

Some other common uses for personal loans include:

  • Combining all ongoing debts into one consolidated one. The borrower can choose to repay all their pending debts and take a personal loan to mitigate the finances, thereby having only one interest to pay. However, it must be only done, when the consolidated interest is more than that of the interest rate of the personal loan.

Eligibility Criteria:

  • For most personal loans, a minimum age of 21 and a maximum of 65 is considered.
  • The number of years the borrower is living in a property might also be considered.
  • Most personal loans consider the amount of monthly income for fixing the interest rate.
  • They might also consider the type of occupation.

How to Apply personal loan Online:

  • Compare interest rates.
  • Select the lender (Bank or any other financial institution).
  • Using the online application form, fill in the details like name, occupation, residence, monthly income, etc.
  • Verify the contact number as well as the PAN card.
  • After approval, fill in the loan amount and tenure.
  • Most banks also offer insurance on loan liabilities for additional charges. The borrower can opt for this too.
  • Once all the other details are verified and approved. Accept the online agreement. Upload necessary documents and signature. Then the loan will be granted.
  • Some banks may require guarantors for certain individuals based on their occupation status, or monthly income, or the years in their occupation. In such cases, the details of the guarantor will also need to be uploaded.

With most banks/financial institutions offering online platform, this is how easy it has become to apply personal loan.

Related post -: How Personal Loans Help During An Emergency

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