Personal loans provided by different lending institutions are tailored to fit the necessary funding needs of individuals related to various important aspects of life. You can find various attractive features that make these advances easy to manage and repay. Add to it the facility to apply for a personal loan online, and you can be sure of easy access to financing as well if you meet the necessary eligibility requirements.

Here’s a quick look at all the important details related to the advance that you would need to know before sending your loan application.

Meaning and Scope of a Personal Loan

The following points clearly sum up the meaning of a personal loan and the scope of its utility for people.

1. A personal loan is usually an unsecured advance, which means you do not need to collateralise any personal or business asset to avail necessary financing.

2. You would need to meet all eligibility requirements laid down by the lending institution to apply for a personal loan online. However, increasing competitiveness among lending institutions has meant simplified and minimal requirements that make you eligible for the financing. You would also need to provide supporting documents to prove your eligibility when applying.

3. The individual borrowing funds does not need to worry about the risk to personal assets in the case of a loan repayment default.

4. Personal loans today are available at competitive rates of interest. You can compare lending institutions online before applying for the best deal on these advances.

5. These are high-value advances, which means financing of big-ticket expenditure is possible with the funds.

6. There are no restrictions to end-use laid down by the lender. Hence, one can apply for a personal loan online for any purpose, like meeting wedding expenses, funding higher education, overseas travel, business expansion, etc.

7. Even, you can utilise a personal loan to fund home renovation, in which case tax benefits can also be availed.

Top Features to Look for in an Online Personal Loan

Before you apply for a personal loan online, make sure to consider whether the selected lender offers the following features for ease of financing and repayment.

A. Easy loan application

The purpose of an online personal loan is to ease the entire application process and provide financing at the comfort of your home. Online loan applications with reputed lenders thus often involve a few simple steps. You only need to visit the financial institution’s official website and visit the application portal for form fill-up. You would then be needed to fill in the necessary personal, financial, and professional details with accuracy to proceed.

B. Fast approval

Simple loan processing combined with minimal documentation also means you get your application approved instantly after you apply for a personal loan online. Usually, this can mean approval for the advance within a few minutes of application. You must, however, ensure that you meet all eligibility requirements before applying.

C. Disbursal under 24 hours

Once the loan is approved, disbursal of your advance online should not take much time. With some of the best lending institutions, you can expect disbursal of your approved personal loan within the next 24 hours. Such a facility makes meeting emergency financing needs with ease.

D. Digital loan account management facility

Financial institutions providing the facility for online personal loan application also extend loan account access digitally through dedicated customer portals or their websites. Such an access allows borrowers to easily track their loan details on the go without needing to visit the lender branch.

E. Online repayment options

An end-to-end online financing facility includes the scope for easy repayments through digital mediums as well. For instance, you would be allowed to pay your EMIs for the loan online through options like net banking, NEFT, IMPS, etc. simply by logging in to your account.

F. Doorstep document collection

With the best lending institutions, you would not be needing to step out of your home altogether as even application verification and document collection services are provided at your doorstep.

All you need to do is keep all the necessary documents handy when applying for your personal loan online to streamline the processing.

With the right eligibility fulfilment, individuals can expect to avail financing of up to Rs.25 Lakh when they apply for a personal loan online. Choose a suitable tenure of up to 5 years for easy loan repayment. You can use a personal loan EMI calculator for suitable tenure selection based on the loan amount chosen and interest rate applied.