Financial experts predict that digital lending will account for 16% of the total retail loans by 2024, undergoing a 10% increase in the next few years. Tapping into the ever-growing demand for digital loans, more personal loan financiers are offering online personal loans at lucrative offers. And to make the most of instant loan approval and ease of loan application, one must pick a digital loan that comes with attractive interest rates.
Steps to avail of a digital loan with a low-interest rate
Here’s how one can avail of a digital personal loan in 5 easy steps –
- Select a financial institution
Individuals should look for financial institutions, which offer digital personal loan features. Prospective borrowers should also weigh in factors such as processing charges and other charges, terms of repayment, and penalties accompanying the loan option offered by leading financiers. Based on the features they offer, individuals can pick a suitable lending institution at competitive interest rates.
- Compare interest rates
To secure a low-interest personal loan online, individuals should first find out the prevailing rates. Additionally, they should compare the rates extended by other leading financial institutions to avail a better offer. Regardless, it must be noted that loan interest depends on multiple factors. For instance, applicants with a high credit score of over 750 and a regular source of income are more likely to secure a personal loan at attractive interest rates.
Other than that, they must also find out the accompanying rates and charges to estimate the cost of availing a loan successfully. They can use an online EMI calculator to calculate personal loan EMIs and find out how the applicable rate of interest influences their repayment capability.
- Find out the loan eligibility criteria
One must also find out the loan eligibility criteria to understand whether or not they will qualify for the credit option. It will prevent their loan application from getting rejected, eliminating the risk of declining their credit score. Also, applicants with favorable eligibility criteria are more likely to be offered a loan at a low rate of interest.
Typically, the typical personal loan eligibility criteria include –
- Indian residents between the age of 23 years and 55 years.
- Must be employed at a recognized MNC, private or public company.
- Should have a high credit score, preferably over 750 with a good credit history.
- Must have a minimum monthly income as specified by the financier.
It must be noted that different financial institutions set other eligibility criteria for salaried and self-employed applicants. They may also require applicants to meet additional requirements to be deemed eligible for an online personal loan.
Financial institutions also extend pre-approved offers to existing customers that make the entire process of availing a credit simpler and time-saving. Usually, such lucrative offers accompany unsecured loan options like personal loans, business loans, Business Finance Software, etc. You can check your pre-approved offer by entering your name and contact number.
- Find out the required documents
Typically, leading financial institutions like Bajaj Finserv extend digital personal loan without the need for extensive documentation. It simplifies the application process and ensures a quick disbursal of the loan amount in most cases. Applicants only need to submit some essential documents attesting to their personal information.
Nonetheless, individuals must find out whether or not their choice of financier requires applicants to submit documents while applying for a personal loan. Doing so, they will be able to collect the documents beforehand and sail through the process effortlessly.
- Improve creditworthiness
Other than these, individuals should endeavor to improve their overall creditworthiness and eligibility so that they can secure a digital personal loan at low rates. They can do so by putting these following into practice –
- Repay outstanding debts on time.
- Pay credit card bills without delay.
- Generate a regular source of income.
- Maintain a low credit utilization ratio.
Lastly, individuals should proceed to find out how to apply for a digital personal loan so that they can secure the credit whenever necessary.
Steps to apply for a personal credit digitally
By following these simple steps, one can apply for a top-up personal loan with ease –
- Visit the financier’s official website.
- Navigate to the ‘Personal Loan’ page.
- Click on the ‘Apply Now’ button.
- Provide the required details and submit essential documents.
- Verify the details shared and click ‘Submit’.
Typically, it takes less than 10 minutes to receive notification about loan approval.