Can I get a Personal Loan online?
December 30, 2019
In the digital age, everything from apparel and cosmetics to eatables is available online. And now, even financial products like Personal Loans can be availed through the internet. Almost everyone has heard about Online Loans, but not many know how to avail of one. Even in Online Loans, Home Loans and Auto Loans are relatively popular, but can you get a Personal Loan online? The answer is in the affirmative but let us take a detailed look.
What is a Personal Loan?
In India, you can avail loans for purposes that require a substantial amount like buying a house or vehicle or to fund education. But what options do you have if you need a relatively small amount for personal activities like house repairs, travel or marriage? Personal Loans are unsecured loans that help you take care of your current financial needs, be it large sums of money or small amounts.
The two most defining features of a Personal Loan are that you do not have to provide any collateral, and you get ample flexibility to use the funds as per your unique goals. Even though Personal Loans can used for various purposes, some lenders provide targeted Personal Loans. Depending on utilization, there are several types of Personal Loans available in India.
Home Renovation Loans: If you require funds to get essential repairs done in your house or revamp the furnishings for a new look, a Home Renovation Loan is the right Personal Loan for you. You can utilize Home Renovation Loans to make necessary changes to your house.
Wedding Loans: Marriage is an important milestone for most people, but one may have to spend a substantial amount on wedding expenses. You can easily avail an online loan to cover wedding expenses.
Vacation Loan: You can use the best Personal Loans to fund your next vacation and get yourself that much-needed rest and rejuvenation.
NRI Loans: Even if you live in a foreign country, a need for urgent funds back home can arise anytime. Personal Loans for NRIs can help take care of a wide variety of requirements.
Besides house renovation, weddings, or vacations, Personal Loans can also be used for other financial needs. All major lenders provide Personal Loans online, but before applying, it is important to know some steps to boost your approval.
Monitor Credit Score: One of the most important factors that could affect your chances of getting an online loan is your credit score. You may not have intentionally missed any installments, but it would be prudent to check your credit score before applying for an online loan.
Boost Your Income: A key metric used by lenders to ascertain the credibility of borrowers is the debt-to-income ratio. It is used to measure the loan servicing ability of the borrowers. To get your debt-to-income ratio, multiply your total monthly loan outgo with the gross monthly income. A higher ratio is not considered desirable for loan approval. In case the ratio is high, you should try to boost your income through alternative sources.
Rope in a Co-Signer: If important metrics like credit score and debt-to-income ratio are not very favorable in your case, you should try to rope in a co-signer for the online loan. A person, preferably a family member, with a good credit score can help you get the loan as the obligation to pay back gets equally shared.
Choose a Suitable Lender: The requirements are not universal for all lenders. Some ask for an extremely high credit score and income to reduce their risk. Choose a lender whose eligibility criteria you can meet.
Once you decide to apply for an Online Loan, choose a credible lender, with a simple application process. Even though the application process may differ, the documents required are largely similar for all lenders. You will need to produce the following documents:
- Identity proof
- Address proof
- Bank statement of at least three months
- Salary slip
If you have the documents ready, you can get a Personal Loan approved in just a few clicks.
When it comes to personal loan application, ICICI Bank offers Instant Personal Loan exclusively for existing ICICI Bank customers. The bank offers Instant Personal Loan at an attractive interest rate. Under Instant Personal Loan, you are eligible for a pre-approved loan offer that helps you avail the personal loan in just 3 seconds. With the advantage of a pre-approved loan, there is a zero or minimum documentation process, and the loan processing is quick. Moreover, pre-approved allows customers to enjoy flexibility in terms of loan amount and tenure. Thus, making the repayment hassle-free for ICICI bank customers.
Use ICICI Bank Personal Loan EMI Calculator to get prior knowledge of the monthly outgo before availing of an Instant Personal Loan. With advanced knowledge of the financial obligation, you can make an informed decision, which is of immense help in maintaining credit discipline during the loan tenure.
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