The popularity of personal loans as an emergency monetary agency has grown significantly over the past few years. Fast-tracked loan availability, combined with technological advancements, has allowed the segment to prosper considerably. They also come with home warranty regulation. Hence, they are doubly beneficial.
Several financial institutions have taken the conveniences a notch higher by providing products like an Instant digital loan. Individuals can avail such loan digitally from the comfort of their home with virtually instant approval and disbursal. It’s simple, hassle-free availability compounds a personal loan’s function as an emergency financial agency.
What are the features of a digital personal loan?
Here are the few features that you can enjoy with a personal loan:
- 100% online process
A significant benefit of such a credit facility is that you can avail it completely online. The entire process from application to approval to disbursal is carried out online. Therefore, you can avail such a loan from anywhere any time to mitigate emergency financial obligations conveniently.
- High loan amount
One of the more critical benefits of a personal loan is the substantial ticket size. You can avail an online personal loan with a quantum of up to Rs.25 lakh, depending on your eligibility.
You can also avail instant finance for all kinds of crises with a personal loan. That’s because this credit facility does not come with any end-use restriction; therefore, you can use it to mitigate a host of financial obligations.
- Minimal to zero documentation
In the case of a digital personal loan, you might not need to produce any document to avail it. It especially holds for the existing customers of a financial institution, since their details are already present.
On the other hand, new customers only need to submit a handful of basic documents by scanning them. Either way, it remains a completely online process. Furthermore, a minimal to zero documentation process fast-tracks the approval process as well as the disbursal process.
- Real-time approval
Another critical benefit of an instant personal loan is that approval and disbursal are fast-tracked considerably. For instance, in case of a Bajaj Finserv Personal Loan, details of pre-approved customers in the application form are auto-populated.
Thus, pre-approved offers expedite the application process and facilitate approval within minutes. You only have to provide your name and phone number in order to check your pre-approved offer. Such offers are also available on other financial products, like a business loan, credit card, etc.
- Flexible loan tenor
Loan tenor plays a critical role in the calculation of your EMIs. Repayment tenure for an instant personal loan ranges up to 60 months, which provides sufficient flexibility. You can choose any number of months for repayment, based on your affordability as well as present and estimated future disposable income.
However, you might want to note that while a short repayment tenor entails a high EMI, it also lowers the overall interest outgo and vice versa. That’s because, the longer the period, the more significant is the interest accrual. You can use a personal loan calculator to ease the calculation.
- No collateral and zero hidden charges
You can avail a digital personal loan without collateralising any asset, thus expediting the approval process. It also does not involve hidden charges.
While these are a few features of this credit facility, here’s how you can apply for it:
- Visit your lender’s official website and search for a personal loan
- Click on “Apply now.”
- Fill out the application form and submit necessary documents
In case you are eligible for a pre-approved offer, follow these steps:
- Click on “Avail offer.”
- Select the loan amount, based on what you’re eligible for.
You need to possess a good credit score to qualify for a substantial loan amount. For instance, the CIBIL score for a personal loan is 750.
However, you may be able to avail personal loan with low CIBIL. In that case, you might be charged higher interest rates.