How to Avail a Digital Personal Loan without Leaving Your Home?

A personal loan is a financial tool that can help you in meeting your short-term money requirements. Unlike specific-purpose loans such as a vehicle loan, personal loans serve as a versatile tool that can help individuals meet various financial needs. Whether it's funding a dream vacation, managing unexpected medical expenses, or consolidating high-interest debts, personal loans offer a quick and flexible solution, without the need for collateral.

The age of digitization has benefitted several people and industries, and the financial services sector is no exception, making it easier for people to access financial resources at their fingertips. With services shifting online, one can avail an instant personal loan facility.

Known as “The Most Trusted Financial Services Brand”, Muthoot Finance has adapted to the digital age, and one can easily apply for a personal loan online, without having to leave the home. Although the eligibility criteria is stricter for this type of loan, the process is fairly straightforward.

Availing a Personal Loan Online

Availing a personal loan online through Muthoot Finance involves the following steps:

Personal Loan Application

In order to initiate the process for a personal loan, you have to fill in your details in the form provided on Muthoot Finance’s website or download the iMuthoot application on your mobile and submit basic details such as your name, contact details, and the amount you wish to borrow.

Documents Submission

Along with the personal loan application, you will also be required to submit certain mandatory documents. The entire documentation process can be carried out online. Some important documents include:

• Identity proof (Aadhaar card, Voter ID card, Driving license)
• Address proof (Aadhaar card, Passport, Utility bills, Voter ID card)
• Bank statement of previous 3 months (Passbook of previous 6 months)
• Three latest salary slips(Mandatory)

Evaluation

Once you have submitted your details, your profile will be evaluated based on the eligibility criteria, and the documents that you have submitted will be thoroughly checked.

Track your Personal Loan Application

For the ease of borrowers, Muthoot Finance offers tracking of the status of your personal loan application. You can check your personal loan status by visiting the official website of Muthoot Finance, and filling out your details such as your full name, registered mobile number and the like.

Loan Disbursal

Once the eligibility criteria have been met and the documents have been verified, your application will be approved and the loan amount will be disbursed directly to your bank account.

Important Things to Know Before Applying For a Personal Loan

Apart from understanding the basic steps for availing an instant personal loan online, there are certain other important factors to keep in mind in order to make an informed decision.

Calculating the EMI

The Equated Monthly Instalment, or EMI, is the monthly repayment structure on your loan amount. The EMI that you pay includes the principal amount as well as the interest rate. It continues till you have fully repaid your borrowed amount. There are three main factors that affect your EMI. These are:

• Loan amount
• Interest rate
• Loan tenure

When availing a personal loan, the EMI that you will have to pay is one of the most important considerations. Before applying for the loan, you can calculate the EMI online using the personal loan EMI Calculator by Muthoot Finance. All you have to do is enter your desired loan amount and the loan tenure, and the personal loan calculator will calculate the EMI you are liable to pay immediately. This will not only help you in deciding the loan tenure but will also help you plan your payments and monthly budgeting.

The Eligibility Criteria for a Personal Loan

There are a number of factors affecting the eligibility criteria for a personal loan. Since this type of loan does not have any collateral, the eligibility is stricter. The basic criteria stipulate that a person should be:

• 18 years of age
• A resident of India

Other than this, there are many other considerations that affect the eligibility criteria and can change from time to time. Some of these include:

• Source of Income
• Existing debts
• Credit score
• Nature of employment
• Age
• Geographical location

Personal Loan Interest Rate

The rate of interest on a personal loan tends to be higher than other types of loans because personal loans do not have any collateral. In most cases, lenders usually have a fixed interest rate, which is a set percentage of the principal loan amount. The personal loan interest rates are calculated annually and are paid by the borrower along with the principal amount in the form of monthly equated payments.

It is important to remember that the interest rate charged on a personal loan can vary depending on a person’s loan eligibility. Some of the factors affecting interest rates are:

• Nature of employment
• Collateral
• Income level
• Credit score
• Debt-to-Income ratio
• Age

Muthoot Finance, with its customer-centric approach, provides a seamless online platform for borrowers to apply for and secure instant personal loans, along with easy online repayment methods. Opting for a personal loan online is one of the best ways to meet your immediate financial needs from the comfort of your home.