Which Is The Best Way To Get Personal Loan Online

Highlights of personal loans

 

Personal loans come in the form of short- or medium-term loans that are mostly unsecured since they do not require any security at the time of disbursal. They are usually dispersed within a few hours or sometimes a few days and require minimal paperwork. One of the main features of personal loan is the flexibility of usage. They can be used to meet a range of needs such as emergency medical spending or sometimes planned expenses such as home interiors, weddings, etc.

Personal loans that come with low interest rates are the easiest way to deal with any urgent financial requirements. Whether it is for financing your child’s wedding or making payments for a holiday booking, you can fulfil all your requirements with the help of a personal loan. 

How to get the best personal loans online? 

This is a common question among borrowers. Just like any other financial product, there is no one answer. What works for one person may not work for another. So, in this article, we guide you on certain strategies that will help you find the best personal loans online. 

To ensure that you get the best deal - you need to look for personal loans with low interest rates. This helps you repay the loan easily, without overburdening your finances. 

4 Best Strategies to Get the Best Personal Loan Online

1. Maintain a Good Credit Score - Your credit score reflects your credit standing based on how you have effectively managed credit previously. A credit score in the range of 700 or 750 can reflect well upon you, especially when you want to apply for a personal loan. As a thumb rule, if your score is higher, it will always work in your favour. Lending institutions evaluate repayment terms, decide on the loan amount as well as the interest rate after looking at your credit score. You can have better negotiation terms when you carry a better credit score with you.

2. Compare Lenders to Land the Best Offer – Some amount of research can help in easily getting a personal loan online. You can compare various lenders offering personal loans online to find out the best interest rate on offer and different features that are being provided. This may be time-consuming, but it will help in making the right choice. Sometimes, you can get a personal loan with instant approval and get hands-on the finance as soon as within 24 hours.

3. Explore Seasonal Offers – Lending institutions always notify customers when they come out with special offers. This usually comes through SMS or email. You can keep an eye out for such offers which will help in making your loan affordable. Limited-period discounts are easy to get an interest rate on some of the personal loans. Such discounts are often available online especially during festive periods, so always be on the lookout.

4. Use Your Professional Credentials for Easier Qualification- If you earn a reasonable amount of salary and are associated with a reputed company, it can help you in getting a personal loan from any lender. Therefore, you can use this to your advantage and negotiate with the lender for a better interest rate. Your firm’s prestige and a good reputation can help in getting a lower rate of interest from the lenders since they can be confident about your repayment capability.

Interest Rates on Personal Loans

Here is a list of top NBFCs in India and the interest rates that they offer for personal loans.

 Additional Reading : Personal Loan Types

Eligibility Criteria for Personal Loans Online

A personal loan is offered to individuals. Most lending institutions offer personal loans to individuals as well as professionals who are either salaried or self-employed. The eligibility criteria may vary across banks and other lending institutions and may depend on the category of the applicant. Here are some of the main eligibility criteria set out for personal loans by most lenders:

 Key Features of Personal Loan

Personal loans come in the form of unsecured credit and usually have a flexible end-use. These generally have a tenure ranging from 12 to 60 months. If you opt for a shorter tenure, each EMI payment may be higher. On the other hand, a longer tenure could mean smaller individual EMIs. Here are the key features commonly found in personal loans:     

• No Collateral:  When it comes to a personal loan, you need not provide any security like a house or a car. Personal loans are approved depending on your creditworthiness, credit score, total income, employer credibility or reputation, etc.
• The flexibility of Use: There are generally no restrictions on how a personal loan can be used. Whether it is for meeting expenses such as medical emergencies, home renovation, debt clearance, etc., it can be put to many uses without any limitations from the lender.
• Flexible Tenure: Personal Loans have a flexible tenure which could range from 12 to 60 months.
• Less Documentation: Online personal loans are available with minimal documentation. The main documents that an applicant needs to furnish include proof of identity, address proof and income proof.
• Fast Disbursal: Disbursal of personal loans is usually very quick and these can be available within as little as a few hours. This is, provided the application is approved. Some of the personal loans online can even be available within a matter of minutes if they are pre-approved.
• Flexible Loan Amount: Lenders usually approve a personal loan depending on an individual’s repayment capability after looking at his or her credit score, monthly income, employer reputation and few other similar factors. The amount could be as low as Rs. 10,000 and in some cases, it could be as high as Rs. 40 lakhs.

Also Read : CIBIL™ Score for Personal Loan

Final Thoughts 

It is the day and age of online services and the same applies to personal loans as well. Opting for an online personal loan is not only convenient but also can help you land the best interest rates. Make sure to compare lenders, evaluate loan features to find the personal loan online.

 

FAQs - Which is the best way to get a personal loan online?

1. What is a personal loan?

The personal loan is a common purpose loan where the loan can be sanctioned to meet any personal expenses of the applicant like wedding, medical emergencies, education expenses, travel, home repairs, etc. 

2. What is the minimum age for personal loan eligibility?

The minimum age for personal loan eligibility is 21 years

3. What is the maximum tenure of personal loans?

The maximum tenure of personal loans is 5 years to 7 years based on the bank’s guidelines.

4. What is the minimum credit score needed for personal loans?

The minimum credit score needed for personal loans is 750.

5. Can a person apply for a personal loan with a credit score of 650?

Some lenders provide personal loans even if the credit score of the applicant is 650 or below. However, the rate of interest will be higher and the loan amount may be lower.