A personal loan can be taken for various purposes- it could be for buying furniture, financing a marriage, going on a vacation or even if you want to totally revamp your home. Personal loans are a convenient instrument for times when one needs quick financing. A big advantage involved in opting for personal loans is that they are unsecured which means that there is no need for collateral. All banks and NBFCs over the country offer personal loans bundled with several features at attractive interest rates and have moved to the virtual platform to increase the reach of their products. It is extremely easy to avail personal loans online and in many ways, it surpasses the normal procedure of going to a bank and applying in person. Here are some major benefits of applying for personal loans online.
One need not disclose the purpose of applying for a personal loan when applying online. Moreover, these loans come without having to provide any collateral or security. One’s credit history is one of the major factors taken into consideration when checking for eligibility of approval of a personal loan. It is a great option for people who do not have any assets to provide as collateral.
- Lower charges
The processing fees levied on application of a loan and the various processes involved are much lesser than those levied in case of a traditional application in person. Tata Capital,
an NBFC, is one such institution that charges zero processing fees thus making it extremely appealing to borrowers.
- Easy comparison
The internet is a big, virtual marketplace where all banks and NBFCs showcase their products in an easy and comprehensive manner. Customers find it extremely convenient to browse through different products and compare them. They can sit in the comfort of their homes and compare various products, feature for feature without having to travel anywhere.
Related: Understanding your financial needs with a personal loan calculator
All the details regarding the personal loan are out in the open for the customer to carefully read through and understand. The EMIs, tenure, maximum loan amount, eligibility criteria, fees and other information is clearly listed for the customer to scrutinize, leaving no room for undisclosed hidden charges or clauses that can later harass the customer
- Ease of application
Applying for a loan online not only saves you time but also saves you money. Many online application portals offer eligibility checks for one to see if they are eligible for loans. The terms and conditions are clearly stated. After scrutinizing these, one can fill up an online form to apply for a personal loan. Very few documents are required during the application process and they just need to be scanned and uploaded thus saving you the hassle of having to submit several documents in person. The documents required generally include ID proof, basic personal details, proof of residence and income proof.
- Quick approval
Customers who are deemed eligible are given quick approvals, mostly within a week or even earlier. Emergencies are taken into consideration and the process is much faster than it would be if done traditionally. Disbursal of the loan amount is also extremely prompt as you get the money almost as soon as your loan gets approved.
Applying for personal loans and other loans online is slowly but steadily gaining popularity over the traditional methods of applying for loans, owing to the convenience and transparency it provides. The various advantages attached to online application are hard to ignore, which is why it is largely preferred by borrowers.