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| April 13, 2023

Want a Personal Loan from a bank? Here’s how to apply for it from home.

The recent pandemic forced a major overhaul of our lifestyle, choices, and actions. We started ordering everything from groceries to medicines online. This pushed companies to fine-tune their digital presence to meet the growing demand of customers. The ease and convenience of applying for and obtaining an instant Personal Loan online have made it a preferred mode of securing financing for fulfilling short-term needs. If you do not wish to liquidate an asset or investment, you can apply for a Personal Loan. The lender, after evaluating your Personal Loan eligibility, decides whether or not to approve your application. If approved, you are now required to pay monthly EMIs based on the personal loan interest rate, loan amount, and tenure. You should apply for a Personal Loan after carefully evaluating your financial capability of repaying the loan on time.

What is an Instant Online Personal Loan?

As the name suggests, an instant online Personal Loan is the digitized version of a regular Personal Loan. Many lenders including Banks, NBFCs, and peer-to-peer lending platforms provide you with hassle-free instant personal loans in a matter of minutes. The approval period for these loans can be as low as just 1 minute. An individual can avail of a loan amount ranging between Rs. 5,000 to Rs. 5 lacs through these instant loans. Calculation of your Personal Loan eligibility, various applicable interest rates, selection of tenure, and EMI for the selected Personal Loan scheme - everything is available online. Even the requisite documents for the Personal loan are also accepted online. It is to be noted that the loan will be disbursed provided all other eligibility criteria for that particular Personal Loan are met.

Types of Instant Personal Loans

You can now avail of an Instant Personal loan from the comfort of your home. There are two scenarios where a lender approves a Personal Loan application instantly.

Pre-Approved Personal Loans: Lenders might offer pre-approved Personal Loans to their most valuable, reliable and creditworthy existing customers. Since the customers already have a relationship with the lender, pre-approved personal loans offer competitive interest rates, easy EMIs, and a less time-consuming loan process.

Loan Application by the Customer: A customer can apply for an online instant Personal Loan on the lender’s website. The lender calculates the Personal Loan eligibility criteria and examines the documents provided. It then decides whether or not to approve the loan. It is a lengthier process than that of a pre-approved personal loan.

Things to do Before Applying for an Instant Personal Loan

Before you decide to apply for a personal loan online, you must follow these steps:

  • Step 1: Check your latest credit score by accessing your free CIBIL Report. A credit score of more than 750 increases your chances of getting the Personal Loan application accepted in an instant.

  • Step 2: Use an online Personal Loan Eligibility Calculator to calculate your eligibility.

  • Step 3: The Personal Loan interest rates could differ for different lenders. Do check out various lenders to get the lowest possible interest rates on Personal Loans.

  • Step 4: Use a Personal Loan EMI Calculator to get an estimate of the EMI on your Personal Loan. You can adjust your finances accordingly to service the EMIs.

  • Step 5: Apply for a Personal Loan only if you are confident of repaying the loan on time with your selected tenure and repayment mode.

How to apply for a Personal Loan from home?

If you enjoy a good credit score, ideally over 750, and your documents are in order; applying for a Personal Loan online becomes quite easy, fast, and convenient.

Here are the basic steps involved in applying for a Personal Loan from home:

  • Step 1: Go to the lender’s website or install the mobile application. Calculate your Personal Loan eligibility using the Eligibility Calculator.

  • Step 2: Go through the various loan schemes, Personal Loan interest rates, and tenures. Make your selection as per your preference.

  • Step 3: Check your estimated Personal Loan EMI on the EMI Calculator which requires you to input the loan amount, interest rate, and tenure. Select the most suitable combination of tenure and EMIs, repayment mode, etc. from the plans available.

  • Step 4: The lender reviews your application online and that takes only a few minutes.

  • Step 5: Once the loan is approved, you have to upload the relevant documents required to complete the KYC for the Personal Loan.

  • Step 6: Once the application process is completed, the loan is disbursed and the funds are transferred to your account.

Can you apply for a Personal Loan with a low CIBIL Score?

A CIBIL Report is not generated when a person is new to credit and doesn’t yet have a credit history. Apart from this, a borrower could have a low CIBIL score for a Personal Loan because of his/her past loan repayment issues. However, in both of these cases, it is possible to get a Personal Loan without a CIBIL score. For such instant Personal Loan applications, the lender may have certain additional eligibility requirements. These criteria could be having an income above a set limit, having been employed at the same company for a certain period, etc. For an instant loan without a CIBIL score, your eligibility will largely depend on your income.




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