People can have unexpected financial requirements. Personal loans are the fastest way to get the money you need. The process of getting a personal loan from a bank takes time. And getting money from a lender with higher interest rates is risky.
Personal loan apps are a good way to get a quick personal loan because they are risk-free and don’t require much paperwork. With personal loan applications and easy loan approvals, you may be able to get the loan at a fair interest rate.
Read on to learn more about how mobile applications can help you get a personal loan.
Procedure to Apply for a Personal Loan
Applicants must get the loan app from the App Store, which is available for iOS and Android. After installing the app, users must fill out some basic registration information. To apply for a personal loan, you need to be able to use the internet without any problems.
Follow these steps to get an instant approval for a personal loan:
Step 1: Sign up for the app that lets you get a personal loan.
Step 2: Give your personal information and details about your finances.
Step 3: Figure out if you are eligible for a personal loan.
Step 4: Submit your “Know Your Customer” documents and bank statements.
The personal loan application app will review the request once the process is done. On the app, you can see if the loan has been approved. After you get approved, the online lender puts the money in your savings account.
EMIs are how the borrower will pay back the loan and any interest. The total amount borrowed, the number of years and the interest rate are used to determine how much the monthly payment will be.
It’s easy to apply for a personal loan through any app. Each app has rules, interest rates, terms, and conditions. In general, most financial institutions charge 10.50% to 24% p.a as the interest rates.
Documents Required for the Personal loan Application
- Adhaar card
- PAN card
- Statement of the bank account
How is a Personal Loan Used?
There is no restriction on the use of money obtained from a personal loan. You can use the personal loan for many things, such as:
- Taking care of the credit card charge
- Consolidating loan
- Educational purposes
- Medical emergencies
- Holiday vacation
- Home repairs
- Furniture purchase
Criteria for Getting Personal l]Loans
In India, there are many places where you can get a personal loan. They are public and private banks, non-banking financial institutions, and online loan apps.
People can get quick personal loans if they meet the requirements. Loan approval depends on the bank and whether the applicant has a regular job or works for himself.
For Salaried Individuals:
- Applicants must be over 21 years old.
- The borrower must be 60 years old when the loan is paid off.
- The minimum income per month must be between Rs. 15,000-20,000
For self-employed or Business People:
- Applicants must be at least 25 years old to borrow money.
- The borrower should be 65 years old when the loan comes due.
- A minimum income of Rs. 1 lakh per year
You can also use the calculator tools on mobile apps and other financial websites to check if you meet the requirements.
Factors to consider when applying for a personal loan
Personal loans can be sanctioned right away and with little paperwork. A few things affect how smoothly the process of getting a personal loan goes.
Credit score or CIBL score
Your credit score shows your credit history, also called your CIBIL score. It is a big part of whether or not you can get a personal loan. 720 to 750 is the minimum score of credit for a personal loan.
The ratio of debt to income
Before giving out a personal loan, lenders look at a person’s debt-to-income ratio. They also look at how much you make each month. This check is to see if they can pay the EMI on the loan.
The lender will look at your work history when you apply for a personal loan. Before approving a loan, some loan apps check to see where you work and how long you have worked there.
Personal Loans Through Mobile Apps have Several Advantages
Personal loans are available through mobile apps made by banks and online lenders. These loan apps are being made to keep up with technological changes and give people quick access to cash. Personal loan mobile applications have several advantages, such as:
Time and effort are saved:
Borrowers don’t have to take the time to go to a physical branch at a set time for a personal loan. In the traditional way of getting a personal loan, applicants must sign many papers. Borrowers who get personal loans through mobile apps save time and trouble.
Every transaction is recorded:
The loan summary is saved in the application for a mobile personal loan. It tells the borrower how their finances are doing right now. So, it can be helpful to have access to other banking services.
Access to money would be easier:
When an application for a personal loan is approved, the loan amount is put into the account. Borrowers can benefit from getting money right away, especially in an emergency.
Mobile loan applications are cutting-edge digital solutions. Borrowers who are having trouble meeting their financial obligations may benefit from them. With these personal loan applications, the way banks do business could be made easier. The customer’s experience is also improved.
Before applying for a personal loan, it’s a good idea to find out what you need to do to qualify. You may find that you have more than one choice for a reliable loan app. A simple internet search and review of different personal loan applications can help.
For more information on how to apply for a personal loan, check Piramal Finance.