The digital application automates, speeds up and simplifies the loan procedure. It eliminates paperwork and human interactions. This is a beneficial option amid an ongoing pandemic. You can borrow urgent personal loans from the comfort of your home with just a few clicks. The process can start as basic as an online application on the bank’s website on an app.
All you will need are updated documents, a steady internet connection to avoid timeout errors and a smart device like a phone or tablet.But there are certain definite steps to follow to complete the application in a smooth and error-free way.
It is a good idea for beginners to have a clear knowledge of how to start. Further, you must know the eligibility criteria and other factors like tenure and interest rates too. So, if you wish to borrow online, here’s a detailed insight.
Application Steps
The leading Indian banks have minimal steps for a personal loan. This makes the process less time consuming and less complicated for everyone.
Step 1: Visit the bank’s website and check the instant personal loan eligibility. This will include: Minimum age of 23 years and maximum age of 60 years or retirement, whichever comes first, for salaried individuals. Minimum age of 25 years and maximum age of 65 years for self-employed individuals.
Step 2: Fill the online application form upon ticking off the eligibility. You can find it on the website or the loan apps. You can track your application easily later on.
Step 3: Start uploading the documents for verification. This will include valid KYC, 3 months’ bank statement, net banking or debit card details to set up e-mandate and eSign/eStamp for faster disbursal.
Step 4: This is when the bank agents are likely to disburse the loan into your account. This takes place after the verification is completed.
The entire process of loan application is online. You can enjoy attractive features like balance transfer and flexible loan tenures regardless of the mode of application.
Tips to Ensure a Smooth Application
An online process is mostly convenient, quick and safe. But borrowers have to follow a few golden rules to reduce the chances of loan application rejection.
- The information on your documents must be updated and true to your knowledge. Make sure no paper is missing. Or else the loan procedure might be delayed.
- Maintain a good credit score. This can boost the odds of approval of the instant personal loan and help score the desirable interest rates.
- Keep a low debt-to-income ratio since it could be deciding factor for lenders. Divide your income with the total monthly utility bills. Low the DTI, the higher the chances of lenders approving your loan. This is because you are less likely to default on EMIs.
- Pick a co-applicant in case your credit profile or repayment history is not impressive enough. This is also useful if you do not have a steady income. Work with an earning co-owner of the loan to increase the chances of approval.
Considering the countless benefits of a digital loan application, it is a good idea to prepare yourself well beforehand. The process is easy and requires minimum effort for approval.
