Personal loans can be a quick and reliable solution to cover unexpected expenses, but first-time borrowers often worry about lengthy paperwork and slow approvals – exactly what they don’t need during urgent situations.
However, many credible lenders like SMFG India Credit offer an online personal loan application process that’s fast, simple, and secure. With quick loan approvals and flexible terms, you can get the funds you need without unnecessary stress.
In this article, we’ll break down exactly how you can apply for an instant personal loan online, what you can expect during the process, and why it’s the most efficient option for getting quick funds.
Understanding Personal Loans
A personal loan is a type of unsecured loan, i.e., you do not have to pledge any collateral to secure a loan, lowering your risk of borrowing.
A personal loan can be used for almost any purpose such as:
- Consolidate debts
- Cover unexpected medical costs
- Finance home improvements/renovations
- Fund higher education expenses for yourself (working professionals) or your child
- Make big-ticket purchases like modern kitchen appliances or smartphones
- Finance your dream wedding celebration
- Fund memorable travel experiences and adventures
- Purchase electronics, furniture or any high price products which you need or aspire to have.
Why Choose Online Personal Loans?
Applying for personal loans online comes with several advantages such as below:
- Apply Anytime, Anywhere: No need to visit an office or deal with piles of paperwork. You can apply for a personal loan online from the comfort of your home or anywhere, at any time.
- Instant Personal Loan Approval: Online loan applications are typically processed faster than traditional ones applied offline, and you can usually know your approval status within minutes.
- Transparent Loan Costs: Reputable lenders such as SMFG India Credit mention interest rates and other associated fees and charges clearly on their website, so there are no surprises or hidden fees.
- Hassle-Free Documentation:The digital process, coupled with minimal documentation requirements, makes it easy to prepare the necessary documents.
- Get Funds Quickly: Online personal loans are known for quick financial relief in times of need. At SMFG India Credit, the money can be transferred to your account within 30 minutes* of loan approval. Please note that approval and disbursal times vary depending on lender policies and borrower eligibility.
- Eligibility Criteria for Personal Loans
Before applying, it’s important to determine whether you meet the eligibility criteria for an instant personal loan. While different lenders have their specific requirements, let us take a look at the basic eligibility criteria for one of India’s leading financial institutions, SMFG India Credit:
Nationality: The applicants must be residing citizens of India.
Age: Applicants must be at least 22 years old at the time of application and no more than 65 at the time of loan maturity.
Work Experience: Applicants must be salaried and have a work experience of at least 1 year, with at least 6 months at the current job.
Income: For residents of Delhi/Mumbai, the minimum monthly income requirement is INR 25,000. For other cities in India, the minimum requirement is INR 20,000 per month.
Credit Score: A minimum credit score of 750, along with a strong credit history, is necessary.
You can use an online personal loan eligibility calculator to estimate how much you can borrow based on your current eligibility and financial profile.
How to Apply for a Personal Loan Online
Let us take a quick look at the general steps involved in applying for a personal loan online:
Step 1: Choose the Right Lender
The first step is selecting a trusted lending institution that offers instant personal loans. Many lending platforms provide features like quick approvals, quick disbursals, and flexible repayment tenure. When choosing a lender for an instant loan online, make sure to:
- Ensure that the lender is registered with the RBI as a lending institution
- Review interest rates
- Check the basic eligibility criteria
- Check for additional charges such as processing fees
- Ensure the application process is user-friendly
- Read reviews or customer testimonials
Step 2: Fill Out the Online Application
Once you’ve selected the lender, visit their website to begin applying for a personal loan online. Most lenders provide a simple online form where you’ll need to enter basic details such as:
- Personal information: Name, address, contact details
- Income details: Monthly income, employment type (salaried or self-employed), existing financial obligations, etc.
- Employment Details: Name of the organisation you work for, total work experience, work experience at the current job, etc.
- Bank Details:Name of your bank and your bank account number, etc.
- Personal loan amount: The amount you wish to borrow
Step 3: Submit Required Documents
To verify your identity and eligibility, lenders typically require certain documents. Here’s a list of common documents needed for salaried individuals:
- Identity proof: PAN card, Aadhaar card
- Income proof: Salary slips for the past 2-3 months
- Address proof: Utility bills, passport copy, etc.
- Bank statements for the past 6 months
This simple online application can be completed in minutes, especially if you prepare the required documents beforehand.
Step 4: Get Quick Approval for Personal Loans
Many lending institutions offer fast approvals for online loan applications. Within minutes of submitting your application, you can get to know your approval status based on factors such as your income, credit score, and existing debts. However, it is important to note that larger loan amounts and offline applications may need more time for processing.
Step 5: Disbursal of Funds
Once your instant personal loan is approved, the disbursal is usually swift so that you can take care of your expenses in a timely manner. At SMFG India Credit, approved loan amounts of up to INR 2.50 lakhs* are disbursed within just 30 minutes* of final approval.
Conclusion
Personal loans offer a valuable solution for a wide range of financial needs. With adequate research and knowing the steps involved in applying for instant loans online, securing the funds you need can be straightforward. With a 100% paperless application process and swift approvals (subject to eligibility), SMFG India Credit ensures a quick and easy personal loan experience. Free online tools such as a personal loan EMI calculator can further aid your financial planning by providing a realistic estimate of your monthly outflow.
*T&C apply. Please note that final approval, loan terms and disbursement process may vary based on lender policies and borrower’s eligibility.