According to the Reserve Bank of India, the personal loan segment registered a robust year-on-year growth of 12.3% in February 2022. The substantial demand for this credit instrument is due to its convenience in meeting multiple financial obligations- be it a wedding or medical exigencies.
Given its benefits, if you are planning to apply for a personal loan online, you must have thorough knowledge about the same to avoid any hassle during loan application.
How to Apply for a Personal Loan Online?
Before sanctioning a personal loan, a lender usually considers your age, nationality, employment status, etc. Therefore, you must ensure that you meet the eligibility criteria before applying for a personal loan to avoid rejection of your application. After meeting all the criteria, follow a few simple steps to avail this credit:
Step 1: Enter your personal and professional information on an online application form.
Step 2: Select the desired loan amount from a lending partner and choose a tenure that seems convenient for you to repay. Note that the loan amount you can avail depends on your eligibility.
Step 3: Submit the online application form and relevant documents to allow the lender to verify your request.
Once the lender approves your application for a personal loan, it will disburse the loan amount to your bank account within the least possible time so that you meet your financial requirements.
What Are the Documents Required for a Personal Loan?
A lender usually requires identity, employment, and residential proof as essential personal loan documents to verify whether you are eligible to obtain a personal loan or not.
Mentioned below are the essential personal loan documents that applicants falling under respective categories must submit:
|Document Type||Self-Employed Applicants||Salaried Employees|
|Identity Proof||Aadhaar card, PAN card, driving licence, passport, voter ID||Same as self-employed applicants|
|Residential Proof||Passport, Aadhaar card, water, electricity, gas or maintenance bills, ration card, driving licence, property documents, etc.||Same as self-employed applicants|
|Documents to Prove Business Ownership||Property documents, maintenance and electricity bills||NA|
|Documents to Prove Business Existence||Maintenance bill, electricity bill, property documents, copy of tax registration||NA|
|Income Proof||IT returns for the last two years, including the audit report, computation of income, balance sheet, etc., last 1 year bank statement.||Salary slips for the previous 3 months, employment certificate from your present employer and bank statement for the last 6 months.|
|Photographs||1 recent passport size colour photograph||1 recent passport size colour photograph|
Besides, if you are an NRI or a pensioner willing to apply for a personal loan online, make sure to keep the following documents ready while applying for it.
|Type of Documents||Pensioners||NRIs|
|Identity Proof||Ration card, Voter ID, PAN card, passport, birth certificate, Aadhaar card, driving licence||A copy of your passport and visa|
|Residential Proof||Passport, utility bills, ration card, and driving licence||Appointment letter, official email ID and identity card|
|Income Proof||A copy of your bank account’s passbook and a pension payment order, Form 16, bank statement for the past 6 months, and IT returns||Salary slips and the bank statement for the past 6 months|
|Photographs||Recent passport-size photographs||Recent passport-size photographs|
If you are looking for a hassle-free experience of obtaining a personal loan, compare the offerings of multiple lenders and select a lending institution according to your preference. Do not forget to check all associated charges including processing fees, preclosure fees, etc., apart from the rate of interest offered before finalising a lender.
To conclude, a personal loan is an appropriate credit instrument to meet any financial requirements, given its zero end use restriction. However, you must be well-versed on how to apply for a personal loan online to enjoy a hassle-free application process.