How to Get an Instant Paperless Personal Loan Online?

Banking and non-banking financial institutions offer paperless personal loans to help you with urgent needs. Paperless personal loans are the best way to get some extra cash when money is tight. You must first figure out what you need and choose the best type of paperless personal loan.

Finding the right lender is necessary when you need a personal loan, especially if the interest rates are reasonable. Here are some tips to help you decide which paperless personal loan is the best.

What are the things you should consider when choosing a paperless personal loan?

1. Documents

You have to provide digital copies of all the paperwork, like bank statements, income statements, and ITR reports. The documents should be submitted with your application. You can submit these documents as scanned documents (PDF) or images. However, some lenders may ask you for specific file formats.

2. Interest rates

You may be offered an interest rate of 10 to 22%. The interest rate you are offered depends on your credit history, income and credibility. Your income and credit history influence the interest rates the most.

3. Fund distribution

The principal amount is transferred in a single payment directly to your account. You are not required to do any additional formalities. This is the benefit of an online paperless personal loan. However, it also means you must provide the correct bank details.

What are the benefits of a paperless personal loan?

• One of the best things about an immediate paperless personal loan is that it does not need any assets as collateral. It implies that you do not have to give the lender anything as security for the loan. Since the loan does not need any collateral, it is beneficial for those who do not have assets or strong finances.
• Because it is a paperless personal loan, the entire procedure is online. You will not have to request documentation. You will not have the stress of filling out forms, waiting in lines, and putting in time and effort to get approved. The paperless process is much more efficient and quick. Once your online paperwork has been confirmed, the personal loan transfer will happen swiftly.
• Several lenders also provide pre-approved loans to customers with existing profiles. These types of loans require even less documentation. If you have a credit history with the lender, you may not have to submit any documentation.
• Other loans can only be used for specific expenses. For example, you can only use a car loan on your car. On the other hand, a paperless personal loan can be used for anything. You can use the borrowed money for medical expenses, vacations, marriages, education, etc.

Who is eligible for an online paperless personal loan?

Anyone can apply for a paperless personal loan. You only have to meet the lender’s criteria to be eligible for a paperless personal loan. Different lenders have different eligibility criteria for a paperless personal loan. However, some of the criteria include the following.

• Your age must be between 21 and 60.
• Your credit score must be at least 700. This varies depending on the lender. Some lenders may accept higher or lower credit scores.
• Your monthly salary must be at least INR 25,000. Self-employed applicants and business owners should have a gross annual income of at least INR 5 lakhs.
• Salaried employees should have worked for at least 12 to 24 months before applying for a loan. The self-employed individual should have run their business for at least three years before applying for a loan.

How do I apply for a paperless personal loan?

Getting a paperless personal loan is simple compared to submitting a physical application.

• Visit the lender’s website and look through the loan options. Find paperless personal loans.
• Look through the eligibility criteria provided by the lender. It would help if you also looked through the documents you need to submit.
• If you do not have all the documents, collect them. You need to submit soft copies of these documents.
• Fill out the application form and upload the required documents.
• You will get an e-approval once your application is checked. Some lenders check applications within minutes, but others may take up to 2-3 days. You can contact the lender’s helpline for more information.
• You will receive a proposal from the lender. The proposal will include all details like interest rate offered, EMIs, principal amount offered, conditions and fees.
• Read through all the documents before you accept the proposal. Look through the charges you may have to pay. Some lenders charge pre-payment and foreclosure charges. Also, look through the default charges and delay fees before accepting.
• If the terms are to your liking, accept the proposal.
• The principal amount will be credited to your bank account.

Who can acquire a personal loan if they do not have new documentation?

Lenders often give personal loans without documentation to current clients. For example, your bank may offer you a paperless loan since they already have KYC data such as PAN card, Aadhar card, residence details, income details, debt repayment history, and so on. 

Lenders may also provide you with pre-approved personal loans. However, this depends on your profile. There is no guarantee you will be offered a no-documentation loan. It is best to collect all documents before applying for a paperless personal loan.

Conclusion

In many ways, both lenders and borrowers can benefit from paperless personal loans. Personal loans have recently undergone significant changes and they now offer swift processes. Paperless loans can help you get any loan you need swiftly.

If you are looking for a personal loan, Piramal Finance can help. Visit Piramal Finance to learn more about instant paperless personal loans.