Common Questions People Ask When Looking for a Personal Loan in India Quickly
The process of getting instant financial assistance in times of emergencies has been changed significantly in the past few years. With their growing online presence, personal loan apps have made it to the top of the list of preference when it comes to ease and convenience. The procedure for application & relationship management has become easy and has improved drastically with personal loan apps as compared to traditional banks. There are some basic pre-requisites like having a desirable CIBIL score, fulfilment of eligibility criteria which generally includes age, salary or citizenship etc. Once checks are passed, you can be sure of getting approval for your instant loan.
Here are some of the common questions that people ask before availing a personal loan –
1) What is a personal loan?
A personal loan is a debt that can be availed from banks or NBFCs without pledging any collateral. That means it is an unsecured loan that lent without acquiring any form of security from the borrower. As no security is pledged against the loan amount, usually the rate of interest is high for personal loans.
2) For what purpose can I use a personal loan?
You may need financial assistance for multiple reasons – higher studies, wedding, medical expenses, home renovation, etc. You can use a personal loan for any purpose. It does not have restrictions on its end use; hence you have the liberty to use the money in any way you want.
3) What is a Flexi personal loan?
A flexi personal loan is a novel product in the market and is gaining popularity rapidly. In this phenomenon, you are given a line of credit as per the strength of your credit health. From this line of credit, you can avail as much amount as you need. You will be charged interest only on the amount you have used and not the entire line of credit approved for you.
4) What is an ideal CIBIL score to avail a personal loan?
Your CIBIL score is an important parameter that is taken into consideration before the approval of your Loan. It is necessary to analyse your Credit Health Report and improvise on your shortcomings. An ideal score would be 750 and above to get quick approval for your loan.
5) How can I know my CIBIL score?
There are multiple online tools to help you know your CIBIL score. Click here to know yours, now.
6) Where can I apply for a Personal Loan?
You have two options where you can apply for a personal loan – Banks or NBFCs. Both these have their way of conducting business. You can choose whichever option you think is suitable for you.
7) What are personal loan apps?
Personal loan apps are mobile applications developed by lenders which to help their customers avail financial services easily anytime, anywhere.
8) Which apps can I look for availing a personal loan?
There is a wide range of apps available at your disposable. However, not all apps can be efficient for your needs. Some of the best options you can choose from are – RapidRupee, Bajaj Finserv personal loan app, Early Salary, Dhani etc.
9) How can I use a personal loan app to avail funds?
Using personal loan apps is very simple. Please follow the below steps –
- a) Download & install the application on your smartphone
- b) Login and register with your mobile number or email id
- c) Search for a relevant product e.g. Personal Loan
- d) Check if the product suits your needs and apply.
10) What are the eligibility criteria to get a loan from online personal loan apps?
Each lender has its criteria for eligibility when it comes to lending an online personal loan. Generally, your age, citizenship, take-home salary, CIBIL score, city of residence is considered before approving your loan.
11) What documents are needed to avail funds from online personal loan apps?
Generally, you may need to submit your KYC, Salary slips, PAN, etc. You may need to upload all these documents as online personal loan apps have a digitized process for the approval of loans. You may also have to click a selfie for identification.
12) How can I know the status of my loan application?
Online personal loan apps are equipped to cater to all your loan-related needs. You can view and track every single detail of your loan through this app anytime, anywhere, even on holidays! You can easily check the status of the loan application by logging into the app. You can also track your EMIs, upcoming installments, overdue etc.