How Do I Get a Personal Loan Online in India?
Published on Nov 07, 2018
How Do I Get a Personal Loan Online in India?
Personal loans are taken by individuals to meet their existing or future financial needs - from funding the wedding to making home renovations, they can be used for any personal expense. Unlike home and car loans, there is no set restriction on their usage.
They come handy for millions of people to pay for unexpected emergencies to consolidation of debt. The process to availing a personal loan is considered quite convenient, given that you meet the eligibility criteria. Personal loans are advisable if you’re in dire need of cash, don’t possess any assets but hold a credit card.
Here is the general eligibility criteria:
1. You must be between 25-60 years of age.
2. The minimum salary for a personal loan should be 4,50,000 although this number may vary from banks to banks.
3. Your CIBIL score must be above 750 as this ensures that you have a good financial history
4. Salaried employees must have at least one year of experience in the same profession
Basic documents you need to have:
1. Identity proof: Passport/ Voter ID/ Driving license/ PAN card
2. Address proof: Passport/ Ration card/ Electricity bill/ Telephone bill
3. Age proof: Passport/PAN card
4. Proof of business
5. Bank statements from past 6 months
Due to flexible EMIs, loan tenures, and absence of security, personal loans are becoming the ideal option for the vast population. They also carry less risks as the assets are safe with the borrowers, unlike in the case of home and car loans. To avail instant online personal loans, I would suggest Clix Capital for their wide range of offers and flexibility according to the needs of the individual.
Factors Deciding Interest Rates of Personal Loans
• Income Level and Loan Amount Comparison:
The rate is totally dependent on the income level and the company an individual works. This information is compared with the loan amount and they will gauge if you are capable to repay the loan without defaulting. According to the risk involved in your repayment strategy the interest rate varies.
• Loan Tenure:
This is another important factor that determines the rate, the shorter the loan in the higher the interest rate will be and vice versa. EMIs are regular and fixed return for lending banks, thus when the return is for long period the rate will decrease respectively.
• Credit Rating of the Individual:
CIBIL check is conducted by each bank to understand the credit worthiness of the borrowers. In case of any default payment records, huge outstanding loan, fraudulent track records, banks has every right to cancel the loan or charge higher interest rate. This is the very reason, it is essential to keep a good track record of financials for present and future plans.
Insta Personal Loan
Insta Personal Loan in India is the new product with which few Bank and Financial organizations has come up with. It is a type of personal loan only but as the name Insta suggests its approval is faster than the general personal loan.
It is an unsecured loan which means you don’t have to give anything as guarantee like a fixed or moving property. Because of being unsecured loan only its interest rate is somewhat higher than the other loans. This loan can be availed in any kind of urgent requirement or any emergency. These emergency can be of many types such as:-
• Medical emergency
• Travel emergency
• To bear urgent wedding expenses and many more.
Eligibility for Insta Loan:-
There are many factors which are considered when you apply for an Instant personal Loan. Those factors are as follows:-
• Age:- For getting an Insta personal Loan approved whether you are a salaried person or a self-employed person your age should be between 25-60 years.
• Income:- Income is also one of the most important criteria which is considered while approving an Insta personal Loan. For getting an Insta personal Loan approved if you are a salaried employee then your minimum yearly salary should be INR 4, 80,000 and if you are self- employed then it should be minimum INR 6, 00,000 yearly.
• Credit Rating:- for getting your Insta Personal Loan approved your credit rating should be +750. As 750 is considered as a good credit score and with this credit score it is easy to get an loan because a good credit score implies that you have a good financial history and your repayments were on time.
• Experience of work:- when you are a salaried employee you should have a minimum experience of 2 years in the same profession and if you are self-employed your minimum earning tenor should be 5 years.
Documents required for applying for Insta Personal Loan:-
• Id proof :- voter id, Pan card, Driving licence, Aadhar card or any Gov. issued id card.(any one)
• Address proof :- Passport, Electricity bill, water bill, Telephone bill, Rasan card, Bank statements.( any one)
• Age proof: - Voter ID card, Aadhar card, Driving Licence, Passport or any school leaving certificates. (any one)
• Proof of Business experience (only for self-employed):- PAN, Sales tax/excise/service tax registration, Form 16, Forms which shows last income taxes filed.
Interest Rates for Instant personal Loan:-
Instant personal loan is an unsecured loan which means it is not a mortgage Loan. Which simply means no guaranty is required. Because of this only the lender of this Insta personal loan is always on a verge of high risk. If the borrower is not able to do anything then only thing left with the lender is that they can take legal action against them. Because of these risk the Interest rate of Insta Loan lies between 16 to 24% P.A.
As per the current rates, Yes Bank offer the lowest personal loan interest rate of 10.75%. You can get best personal loan depending upon the company you are working with, loan amount you have applied for and your repayment capacity. Higher the loan amount, lower will be the rate of interest.
HDFC Bank, Tata Capital, IIFL, RBL Bank, Citibank, ICICI Bank are the best banks for personal loan, if you are looking for an instant personal loan within 1-2 days. The interest rates on personal loans of these banks are in the range of 10.99% to 16%. These personal loan providers offer online lending process. You can get instant personal loan approval from these banks online at MyLoanCare and check eligibility without having to submit paper documents. Post approval, in case you are an existing bank account holder or existing loan customer of HDFC Bank, Tata Capital, IIFL, RBL Bank, Citibank, ICICI Bank, you may be eligible for instant disbursement without any documents. In other cases, you may upload a few documents on mobile app or submit them physically to a bank loan officer who will visit you at your place before loan disbursement.
Unlike a mortgage, a personal loan is not secured over property. Personal loans rely on the financial reputation of the borrower. It requires minimal documentation such as income proof, ID and address proof. If you are an existing customer, the process will be much easier with minimal or no documentation. As an existing customer you just need to enter few details pertaining to your net banking or customer id and once your eligibility is approved, you can get online approval for your personal loan.