The financial market is leveraging digital platforms to provide advances like online personal loan, thus increasing penetration while improving the chances of the growth of personal finance loans. Individuals requiring additional funds can, hence, avail these loan options with ease. The increasing accessibility of these advances not only hints at sustained growth figures but also a necessary financial backing for the Indian populace.
- The transaction value of the personal finance segment is expected to witness a 45.2% CAGR between 2020 and 2024.
So, here’s a look at the essential information you require when availing financing assistance via an online personal loan.
Digital personal loans – Things to know before applying
- The maximum loan amount available and your borrowing capacity
An online personal loan is available as a high-value, unsecured advance that you can avail to fund diverse expenditures without any lender restriction. However, the loan amount you can avail depends on two essential factors – the maximum ticket size extended by your lender and your capacity to borrow. The former can be a critical factor in choosing the right personal loan lender.
With renowned financial institutions, the ticket size of these personal loans can reach up to Rs.25 lakh. Contrarily, a borrower’s lending capacity depends on his/her income, age, city of residence and such other factors as specified under the personal loan eligibility criteria.
Some standard eligibility requirements laid down by lenders include –
- Age between 23 and 55 years.
- Employment in an MNC, a public or a private sector company.
- Credit score above 750.
- Resident Indian citizen.
- A minimum monthly salary depending on the city of residence.
- A convenient application process
A simplified process to apply for a personal loan stands as a typical aspect of this online advance. All you need to do is reach out to the lender’s website and fill in the application form with necessary details to apply. Make sure to meet all eligibility and document requirements laid down by the lender to streamline your application process.
- Loan approval and disbursal duration
Post application, and a hassle-free personal loan verification process, lenders approve the amount instantly. With reputed lenders, the approved loan amount is also disbursed shortly to make instant financing available to borrowers.
- Flexibility in repayment tenor
The availability of a long and flexible tenor allows individuals to repay the loan conveniently. With the best lenders, you can opt for tenor flexibility of up to 60 months for your online personal loan repayment.
Also, you should choose a tenor that keeps your fixed monthly obligations within your repayment capacity.
- Repayment options available
To plan your loan EMI repayment better, consider the availability of repayment options. For instance, a part-prepayment facility allows you to repay a part of the total loan amount in a lump sum and cut down on interest accrual on the outstanding liability. Similarly, a foreclosure facility enables the entire loan’s repayment at a go and close account before the tenor’s end.
- Applicable interest rates and charges
Before availing a personal loan online, make sure to undertake market research to arrive at a lender offering the most competitive personal loan interest rates. Also, check other charges that should be nominally levied to keep the cost of the loan within affordability.
Lenders like Bajaj Finserv levy a competitive interest rate on their online personal loan, thus making the advance suitable for all.
They also make financing hassle-free and help save valuable time with their pre-approved offers. You can avail these offers on personal loans, credit cards, and business loans, among other financing products. All you need is fill in your basic details to check your pre-approved offer.
Increasing digital lending has made it easier than ever to avail personal loans online, leveraging the growth of personal loans particularly.
- Unsecured loans, the fastest-growing credit segment since 2015, now acquire more than one third of the total household borrowings. Personal loans cover a sizable portion of this.
Individuals can, thus, tap into the increasing availability of online personal loans and fulfil their immediate funding needs with ease. Apply online with all necessary documents for an improved chance of quick and hassle-free approval.
