There are a plethora of financial institutions, including NBFCs and banks, that offer personal loans to individuals seeking financial assistance. These loans serve as a versatile means of acquiring funds that can be allocated towards various personal expenses such as unexpected medical bills, college fees, wedding expenses, travel arrangements, and more.
The primary advantage of personal loans is their unrestricted use, which allows you to utilize the funds as per your discretion and financial needs. Whether you require assistance in managing your finances or want to fulfill your aspirations without compromising your savings, personal loans can be a viable solution.
With Fi.Money, you can quickly get a handle on your personal finance. Fi money in partnership with RBI licensed Federal bank offers a zero-balance savings bank account, which is excellent for anyone looking to save money. Plus, they have an intuitive personal finance assistant called Ask Fi.Money that can answer any questions you may have.
When it comes to personal loans, two fundamental characteristics stand out:
Firstly, end-use flexibility is unrestricted, meaning you can use the loan amount however you choose. There are no limitations on what you can use the money for, unlike home loans or auto loans, which are specifically for buying a house or a car. With personal loans, you have complete freedom to utilize the funds in whatever way you see fit.
Secondly, personal loans are unsecured loans, which means you don’t need to provide any collateral or security to the lender. You don’t have to furnish them with assets, shares, or other properties since personal loans are not secured against your assets.
- When applying for a personal loan online, being aware of certain things is crucial:
- Firstly, you have the option to apply for a personal loan online, at a bank, or with any other financial institution.
- Banks and NBFCs typically offer a one-click application process on their official websites.
- Secondly, your eligibility for a personal loan depends on innumerable factors such as your income, credit score, age, employment type, and various other traits.
- If the financial institution deems you eligible, they will approve your personal loan and transfer the funds to your account.
- Payments for a loan are made through monthly EMIs. It is important to note that banks generally allow for part payments and early loan cancellations.
- Lastly, the personal loan amount may be given to you in cash or on a card that you can use to make purchases. Always keep these factors in mind when contemplating a personal loan.
We’ve got a step-by-step guide on how to get a personal loan online quickly and hassle-free:
- Choose a reputable lender
First things first, don’t settle for just any lender. With so many options out there, it’s crucial to choose a reputable one. Not only will you get the best interest rates, but you’ll also have a stress-free and seamless process. Take the time to research your options and make the best decision.
- Note the eligibility criteria
Before applying for a personal loan, it’s important to determine the amount you are eligible for. The eligibility depends on various factors, such as your monthly salary or business income, any existing loans and EMIs, and the outstanding amount on your credit cards. In short, your creditworthiness as a borrower will play quite a notable role in determining overall eligibility. So, it’s essential to assess your eligibility before applying for a personal loan to avoid any rejection or disappointment.
- Fill out the online form
To apply for an online personal loan, one can head to the lender’s website and fill out a simple online form. All you need to do is provide basic details that will include your name, age, address, mobile number, PAN and Aadhaar card numbers, employment or business details, and your salary or business income. If you’re an existing customer with a good credit history, some lenders may even offer you pre-approved loans that can be availed within a matter of minutes.
- Consider the amount of money you need
When considering taking out a loan, it’s essential to carefully consider the amount of money you need and how long you’ll need it. Keep in mind that personal loans tend to come with higher interest rates, and the rate can vary depending on the overall duration of the loan.
Even if you’re eligible to borrow more, aiming for the lowest amount and shortest duration possible is wise. Additionally, some lenders may offer flexible repayment options beyond the standard monthly installments, so be sure to explore those as well.
- Upload required documents
When seeking a personal loan, it is wise to take advantage of the convenience offered by many lenders with online applications. By simply visiting their websites and following the instructions provided, you can easily apply for a loan.
Additionally, some lenders may allow you to upload required documents such as a copy of your Aadhaar card or PAN card, proof of salary or business income from the past six to 12 months, bank account statements, and even company ID proof if necessary. It is essential to keep in mind that different lenders may have varying document requirements, and some may ask for more than others. On the positive side, as personal loans are uncollateralized, you won’t need to provide collateral documents.
- Lender-approval
Once the lender approves all the documents, one can look for the loan amount to be disbursed into the bank account within a day. It’s a quick and hassle-free process that can provide you with the financial support you need. Personal loans are a great solution when you’re in need of some extra cash.
- Repayment plans
When it comes to repaying a loan, a few options are available to borrowers. Repayment plans usually require partial monthly payments that go towards the principal and interest amounts, but borrowers can prioritize paying off the principal first. This approach lowers the overall interest since lenders will not charge further interest once the principal is fully paid off.
Alternatively, borrowers can opt to pay only the interest portion via equated monthly installments (EMIs) first and then pay off the principal amount at the end of the loan’s tenor. This option can be helpful if a borrower cannot afford a higher EMI that includes both interest and principal payments.
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Conclusion
In conclusion, obtaining a personal loan can be a smooth and straightforward experience if you have a solid credit history and a strong credit score. Additionally, a trustworthy lender will provide you with a competitive interest rate and a repayment plan that fits your financial situation.
By using the Fi.Money app regularly, you can build better monetary habits, meet all your money goals, and even be rewarded for making significant financial choices. Fi.Money and its licensed banking partner make it easy to manage your money online by categorizing your expenses so that you can spend smarter – not less. If you opt for a reliable and efficiently run lender, you can receive your loan disbursal promptly without leaving your house.
