In today’s time, there is loan available for your specific needs such as car loan is used to buy a new car, two wheeler loan is used to buy a new bike, home loan to buy your dream home and education loan to fund your higher education. However, for those individuals whose finances don’t fall under a specific category, there are personal loans. A personal loan is the right financing tool to meet your emergency situation. It provides enough flexibility for the borrowers who are looking to fund their immediate goals, and improve their current situation.
A personal loan is usually termed as the emergency loan being offered by banks, financial institutes, and credit unions to an individual for personal loans. When we say personal use, it means you can use the loan amount to fund end number of requirements such as wedding expenses, medical attention, debt consolidation, business expansion, foreign vacation and more. The money can’t be used to fund any illegal activities, and secondly, as per experts, it wouldn’t be wise to avail personal loans for any investments. Borrowers have to make a fixed monthly payment for a specific period of time, mostly for 2 to 5 years.
If you need a personal loan, you can visit any local banks or financial institutes personally or go through their website. However, manual visit involve several rounds to the lenders and consumes your time and energy. Applying for a personal loan is fairly easy and convenient these days. Thanks to internet facilities, you can now avail personal loans online right from the cozy corners of your home or offices. There are aggregator sites to compare quotes amongst top 50+ banks and financial institutes. Once you compare the quote, you can upload a scanned copy of your documents and apply for the loan. The lenders will evaluate your request, and do a soft credit inquiry. If there aren’t any issues you will get quick loan sanctions in a couple of minutes. Once you grab the offer, the personal loan providers will send an executive to pick a few important documents related to your identity proof, income book, and bank account to maintain records. Once you hand over the agreement letter along with the documents, bank or financial institute will disburse the money to your bank account in 3 to 4 working days.
Before you plan to apply for personal loans online, you should do a few background checks such as:
Income Source – Personal loan providers will check the borrowers’ job stability (2 to 3 years) and organization details. They play an important role in loan sanction. Those who work in multinational firms, semi-government or government sector have good chances of loan sanctions.
Debt-To-Income Ratio – It’s important to review your existing finance and any on-going loan. If a major portion of your income is being utilized to pay the existing debt, it becomes difficult to qualify for a loan. Try to settle your dues before you start a fresh one.
CIBIL score – Your credit report will play an important role to determine your creditworthiness. It will display your repayment history as well. So, try and maintain a clean record with a CIBIL score of 750 and above for easy loan approval. When you need a personal loan, talk to the CIBIL agency, and clear any disputes or existing default remarks on the report.
Hope these checks will help you qualify for easy personal loans online!