How to Apply for Personal Loan Online?

A personal loan is an unsecured credit authorised to eligible applicants, helping them combat emergencies in a hassle-free manner. At present, the personal loan apply online system is more popular than the traditional offline procedure. The entire system remains the same, now the borrower just has to proceed with document submission online and wait for the bank to go through them.  

Though the process looks simple, there are a few steps that need to be followed religiously, to get the chances enhanced of an online personal loan approved in no time. So here we are providing adequate information, elaborating the required steps that you must abide by while proceeding with the personal loan online apply system. 

Step 1: Check out the eligibility criteria

Here are a few of the mandatory criteria that when fulfilled makes a person eligible for a personal loan apply online system. 

• Age: Salaried employees must be of 18years but not more than 65years. For self-employed applicants, the minimum age is 21years whereas 65years is the maximum age. 

• Work experience: A complete work experience of 36months is made mandatory. 

• Minimum Income: It is Rs.3Lakhs for self-employed applicants and Rs. 25,000/- for salaried applicants. 

• CIBIL Score: 650 and above is an appropriate CIBIL score.

Step 2: Calculate the EMI on the interest rate and other charges applied

Various websites are providing online EMI calculators and tally charts for the applicants to gain a detailed view of the loan amount that they wish to borrow. You can go through the provided information and finalise a particular bank or NBFC that fulfils all of the required needs. Also, you must look out for other charges applied, which are:

• GST

• Processing fee

• Verification charges

• Charges for issuing duplicate statements

• Prepayment charges

• Penalty for defaults

Step 3: Provide necessary documents

Keep the below-listed documents handy while applying for a personal loan online:

• Address Proof: Voter’s ID Card, Driving License, Passport, Telephone Bill, Electricity Bill.

• Identity Proof: Aadhaar Card, PAN Card, Passport, Voter’s ID Card, Government-issued Card.

• Income Proof: Bank Account Statement, Salary Slip, Form 16 (if self-employed),  

• Business Proof: Copy of partnership deed, Trade license certificate, SEBI, PAN/ service tax/ VAT/ excise/ sales tax registration.  

Step 4: Fill out the application online

Once you are done with the EMI calculation and documents accumulation part, now it is the final step to be taken while proceeding with a personal loan application online. 

• Visit the official website of the bank or NBFC that you have chosen and proceed with the online personal loan application part.

• The website will get you redirected to an online application form. Enter all the necessary details like name, age, nationality and mobile number. Also, you will have to enter an OTP sent from the lender’s side. 

• Now, it’s time to enter accurate details related to employment and business before proceeding to the next step. 

• Upload all the scanned documents.

• Click on the submit option.

Step 5: Wait for the loan to get approved and disbursed

Banks or NBFCs in general provide the real-time status of the initiated loan over an SMS. At times dedicated support is also provided by customer care executives over the call. Thus helping out the applicant with step by step verification process and final loan disbursal.  

Benefits of personal loan online

Applying for a personal loan online has the following benefits

• Applicants get to make a thorough comparison between multiple deals available online without having to make applications in real. This way they get to avoid hard enquiry which can otherwise negatively impact the existing CIBIL score. 

• Also, there are certain online marketplaces that offer pre and post-service benefits in the form of expert guidance or cashback. 

• Online referral activities are quite beneficial as well, bringing in alluring rewards and attractive cashback from time to time. 

Points to consider after closing a personal loan

While the application was a step-by-step process, closing also includes a lot of factors to be considered, enabling accurate results.   

• Check out the pre-closure charges issued by the bank that you have chosen.

• Do not forget to collect the no-objection certificate containing your name, loan account number, loan closure date and address. 

• Retrieve original documents submitted while applying for the loan. 

• Get your CIBIL score updated by the lender and also do the same yourself. 

It takes about one to seven days for a personal loan to get approved when applied online. Also, there are banks that might approve an online loan application within a few hours of document submission. Pre-existing CIBIL score, age, income status and work experience of the applicant plays a vital role in the loan approval process. Hence, it is always suggested to maintain an appropriate CIBIL score and keep all the required documents handy while proceeding with a personal loan application, online. Do not forget to seek advice from an expert before finalising a particular bank or NBFC.