Struggling to get your funds for your higher studies? Want to renovate your old home to brand new? You’re looking for a personal loan of some sort then. Personal loans are your best option when it come to funding life events like travel, education, purchases etc. With personal loans, you get the money you want quick and easy. In this article, I will tell you how to get a personal loan in India easily. If you are looking for money to study abroad, go on a travel, fund your wedding, buying a car or even renovating your home, then read ahead…
How it works
Well, like everything else in life, personal loans too have gone online. Gone are the days when you had to go to the banks and stay in queue, submitting all kinds of documents only to get denied. Most banks have gone online and they are now taking personal loan applications online. Here’s how it works.
You go to the bank’s personal loan online page (link below) > Submit your details on the form (including name, Aadhar card details, bank account and income details etc) > Bank approves/disapproves your loan based on your eligibility > Loan funded.
It only takes couple of minutes or may be just a few hours to get the funding – that’s the best part. If you are in an emergency, this is the best method to get funds in a short period of time.
Like for example, something unfortunate happened and you want money for hospital etc. You apply online and get the funds in your bank account in few minutes! How convenient is that? No more waiting in long queues and wasting time.
For what purposes can you get money online?
In India, personal loans can be obtained for many purposes, as listed below.
- Personal loan – Up to Rs.25 Lakhs, Approval in minutes, get money in about 72 hours.
- Home improvement loan – Money for home renovation or buying a property (most lender will have pre approved properties).
- Business loan – For starting your own business. No guarantor or third party approval is required mostly.
- Other emergency matters like travel, buying a gadget etc
For most purposes if you can provide a good profile (see qualifications below) and apply online, your chances of getting approval in minutes are high.
Benefits of taking a personal loan online in India
Almost daily I get people asking what’s the best way to get a personal loan. Some are looking for education loans, some just money for home construction, while some are looking for medical expenses or NRI home loans. Whatever the case, an easy solution is the personal loan. Here’s why.
- You will get your money fast (in a matter of minutes)
- Documentation and underwriting is easier and faster online compared to traditional lending institutions like banks
- You have a better chance to negotiate your deal
- You have a better chance to compare your options with offers from multiple lenders
So, provided you know what you are worth (credit history etc), you are in a better position to take personal loan online in India. And considering the hustle and bustle in banks, doing everything online is definitely the way to go.
What’s the catch?
There are somethings you need to understand. Always read the fine print about fees, interest rates and other terms and conditions. In the rush to get money, make sure you don’t ignore these. Usually, the interest rates can be negotiated and the first interest rate you get is high. You could negotiate on that by shortening/extending the pay back time or showing your credit history etc. Personal loan lenders aren’t easy to negotiate with and most of the time the rates they tell you is based off of their study, so it’s non negotiable. But there are chances and it is important that you know what you’re buying.
Personal loans in India – How to apply online
Applying online is easy. But make sure you understand the process well to avoid disapproval.
Eligibility – All lenders have a preset bar for eligibility. For example, minimum Rs.40,000 monthly salary. Make sure you qualify.
Credit score – If you don’t know your credit score, get a free one ready before applying. Banks prefer people with good CIBIL credit scores.
Documents – Make sure you have all your KYC documents ready. (Aadhar card, PAN card etc)
Fees & charges involved
There are many fees and charged involved with online loans in India. It is important that you read the fine print while applying for a loan. For example, for a Rs.25 Lakh personal loan, here are the one set of charges involved.
For instant loan approvals online of up to Rs.25 Lakh
Processing fees – 2.25% – 3% of the loan amount
EMI bounce charges – Rs 1,000 for every bounce
Penal interest – 2.00% p.m (if you default on payments)
Interest rate – 11.99% onwards (will go up depending on your eligibility & risk factor)
Secure fee only for online Rs. 999.
Summary – Will I recommend applying for personal loans online in India?
Yes. They are the best source of funds when you need it fast. The catch is that if you don’t have a credit worthy profile, your interest charges may be higher. But then, when you are applying online, you can compare with different lenders and go with the one who gives you the best interest rate. All the best!
Which are the best personal loans online in India?
|Bank||Interest Rates||Loan Amount (Max)|
|Bajaj Finserv||11.11% - 14.11%||40 Lakhs|
|CitiBank||11.49% - 15.91%||30 Lakhs|
|Standard Chartered||11.25% - 14.49%||30 Lakhs|
|Tata Capital||11.99% - 19.50%||20 Lakhs|
|ICICI Bank||11.59% - 18.49%||20 Lakhs|
|HDFC Bank||11.49% - 19.81%||25 Lakhs|
|Indus Ind Bank||11.99% - 19.11%||25 Lakhs|
|SBI||12.90% - 14.90%||15 Lakhs|
|Bank of Baroda||11.35% - 14.35%||20 Lakhs|
P.S – Rate may change. Please check with the bank directly for updated interest rates and charges that might apply.