Personal loans can be a helpful financial tool when you find yourself in need of some quick credit. Personal loans can be used for anything from consolidating debt to home renovation.
The annual percentage rates for personal loans range from 7.5% to 49%. The interest rate applied to your loan is determined by the amount you are borrowing, your credit score, and the length of time you have to repay it.
The loan application process has been greatly simplified thanks to fintech innovation in lending.
Since lenders already have your KYC information—such as Aadhaar, PAN, income information, address verification and loan repayment history, they frequently offer personal loans to their account holders without requiring any additional paperwork.
Customers do not have to submit hard copies of the essential documents because many banks and NBFCs have implemented an end-to-end digital process, starting from the loan application to credit disbursal.
Even if any documentation is needed, borrowers can upload these documents online from the comfort of their homes instead of having to visit a bank.
Based on their credit profiles, lenders also provide pre-qualified or pre-approved personal loans to a select group of consumers, including those who are new to credit.
Let’s understand how to apply for a personal loan online.
Today, there exists a plethora of platforms that will allow you to take out hassle-free instant online personal loans for amounts ranging from ₹5,000 to ₹5 lakh.
Here are the steps to apply for a personal loan online:
Step 1: Register or log into your account with an instant loan platform
Step 2: Choose your loan amount and the loan tenure you are looking for
Step 3: Apply for the loan that best meets your requirements
Fi Money offers paperless and pre-approved instant personal loans at competitive rates in partnership with banks. This comes with zero pre-closure fees and no hidden charges, with the funds disbursed to your account within minutes.
Your chances of being approved for a personal loan increase if you have a high credit score, typically at least 750. Lenders emphasize credit scores while reviewing personal loan applications since personal loans are collateral-free loans.
A higher credit score also makes it easier for you to receive pre-approved personal loan offers from lenders you already work with. Lenders also tend to provide these applicants with lower interest rates.
You should first approach lenders such as banks or online money management apps you already have an account with since they already have your personal and financial information and will most likely have pre-approved loan offers for you.
For instance, when determining whether you qualify for a personal loan, your bank may consider your recurring or fixed deposits, investments, and transaction patterns and might be able to give you a favourable interest rate.
With the digitisation of financial and banking services, borrowers need to run around looking for credit. Apps like Fi Money provide users with instant personal loans whenever and wherever the need arises.
Thanks to digitisation, it's now quite simple to apply for a loan which can take a few minutes, depending on the institution.
The fastest way to get a personal loan is to apply online through the website or mobile app after comparing the personal loan options available.