The Do and Don’ts of applying a Personal Loan Online
With the onset of digitalization, the financial industry has had a makeover online transactions are the rule of the day. Monies are transferred with a click, and Bank visits have become few and far between.
Banks and NBFCs continuously update information regarding products and policies. Terms and offers for secured and unsecured loans are published and advertised.
Taking it further, Top Banks and Finance companies now offer online processing for secure and unsecured credit. The speed and convenience of online transactions boost sales and loan seekers are happy to research the best terms available per their needs from the comfort of their environment.
A complete range of information is available on the net regarding lenders and their latest offers for a Personal Loan individuals needing fund surgently find it convenient to apply online and receive funds in record time without having to visit Banks.
Applying online is easy for a Personal Loan, with soft copies of income and KYC documents readily available. But using online has some roadblocks, and it is essential to take note of the following to ensure smooth and timely processing.
Check The Terms & Conditions Offered For a Personal Loan Before Applying Online
Before applying online or mailing your documents, it is essential to know the significant terms and charges that apply.
Interest Rate- The interest rate or cost of funds is the primary charge for a Personal Loan and ranges from 10.5% to 18%.
Repayment EMI- The monthly repayment for the Personal Loan should be comfortable to pay. The tenure is fixed from12 to 60 months per the income and loan amount. Calculate your EMI in advance using our EMI calculator.
Processing Fees- Charged is from nil to 2% of the loan amount disbursed.
The Foreclosure Terms- The lock-in period for a personal loan extends from 6 to 12 months, with charges applicable for early repayment of the loan.
Do Not Apply Indiscriminately
On mailing details, your request will be registered by the Bank the lender will also forward a CIBIL request.
If the terms are not suitable and further processing is not desired, there is no going back to the application the inquiry will show in the CIBIL record, and points will be deducted as per the norms.
Applying online simultaneously to many lenders can lead to a decline of your request due to many inquiries registered on the CIBIL track.
Documents Sent Online Should be Complete, Authentic, and Legible
A Personal Loan is forwarded without any security as documentation forms the basis for the decision to approve or decline the request.
Special care is required while compiling Personal Loan documents, including income and KYC documents. Complete documentation sent on time will ensure speedy processing, which may be withheld or delayed if the required documents needed for the financer are not received.
Copies sent should be updated and authentic, as all documents are verified to ensure they are true copies.
The Banks officer may require additional documents from the customer to prove ownership or continuity if an increased loan amount is required.
Mail a Registered ID
The Domain and credentials of the service provider should be verified before mailing documents; they should belong to an organization, as sending documents to a personal mail ID is risky.
Contact details should be verified to ensure accessible communication and be easy to track. Maintain verbal contact at all stages to check if all is in order.
Maintain a Regular Follow-up
Most Banks make a verification call after receiving a Personal Loan request to confirm the applicant’s contact details. A message or email is also sent to acknowledge the loan request, and a loan ID is generated.
If no communication is received within 24 hours of submitting the paperwork, it is a cause for concern.The USP of a Personal Loan is easy and quick receipt of funds if the process is stalled because of a pendency, it will defeat the purpose of online processing.
Being updated at all stages of the process is essential as it will ensure the timely delivery of a Personal Loan.
Systems are still being revised for online processing for secured and unsecured credit, but the journey is mixed.
Applicant sun willing to expose their details online still prefer to process their loan application by giving hard copies of documentation.
Cutting down on paperwork and physical visits,customer verification is confirmed on a Video call and applicants can now process the disbursal of their loan online by accepting the terms and conditions of the loan agreement on the soft copy.
Banks are working to remove glitches, as there is no denying that digitalization is the finance industry’s future in the times ahead.