While applying for a loan online, you are expected to present collateral to the bank. Things like property papers are an example of collateral. If it ever happens that you were to fail to repay the loan, the bank will take up the ownership of the collateral. However, there are types of loans that don’t require collateral. These loans are referred to as unsecured loans. Here is how you can apply for an unsecured personal loan online:
- Look up your loan eligibility
After looking up your monthly income, various financial institutions will inform you of the maximum loan amount they can offer you as a pre-approved personal loan. Also, based on what you earn every month, you will also be informed of the rate of interest that will be offered. It is also important to note that banks will not always offer you the loan amount that you require. That’s because the bank will first check your repayment credibility before making the offer. Hence, first, check your pre-approved personal loan eligibility before you go ahead and apply for avoiding rejection later. Furthermore, you should also remember that you shouldn’t apply for a loan online with many banks at the same time. This will adversely affect your credit score.
- Select the right bank
After checking your loan eligibility and identifying the reason for applying, you should choose the bank you want to avail the pre-approved personal loan. Simultaneously, you should also check personal loan details such as interest rates, processing fees, and foreclosure charges. After assessing all the details, you can go ahead with the bank that’s most credible and provides the best offer on its unsecured loans. For instance, IDFC FIRST Bank is well-known for offering one of the most affordable rates of interest.
- Submit the official documents
Proper documentation is essential for personal loan approvals, be it secured or unsecured loans. Providing incorrect information on the application form or submitting the wrong documents might lead to a rejection of your loan application. So, while applying for a loan online, please make certain that all the documents that you are submitting to the bank contain the correct information. Submitting authentic documents ensures a smooth personal loan application process.
- Getting the loan approved
Once you submit the documents, the loan amount will be disbursed into your bank account. Once that’s done, every month, loan EMIs will be automatically debited from your account on a specific date. During the loan repayment process, please ensure that the EMIs don’t bounce. That’s because it will negatively impact your credit score. In case you want to know the status of your pre-approved personal loan, you could do so online.
So, these are the four steps that are involved in the process of applying for an unsecured loan online. Before applying for a personal loan online, please make sure to look up the interest rate and repayment tenure. Doing so will ensure that you can comfortably repay the loan.