Ways to Get an Instant Personal Loan Online In India?

In recent times, instant Personal Loans have emerged as one of the most sought-after credit types across the nation. This popularity of Personal Loans can be attributed to a wide variety of aspects, the most prominent of which are easy availability, no need for collateral, and quick disbursal.

Unlike other conventional loans, Personal Loans can be conveniently used for any purpose (albeit legal) that the borrower deems fit, without any intervention of the lender. This makes it fairly easy to access the loan amount for meeting crucial expenses such as –

• Wedding/Other Festive Occasions
• Higher Education of One’s Child
• Renovation of Home
• Purchase of Home Appliances
• Expansion of Business
• Purchase of New Equipment or Machinery
• Operational Requirements of Business
• Emergency Medical or Legal Expenses
• Planning a Vacation
• Debt Consolidation

Now that you have a fair idea of what Personal Loans are, and how they can be put to use, let us understand some of the most reliable ways of availing instant Personal Loans in India.

Ways to Get an Instant Personal Loan in India

Personal Loan from Banks

Almost all leading banks of the nation offer Personal Loans to its patrons. While a few banks only offer these loans to salaried individuals, most others offer Personal Loans to non-salaried people including business owners, as well as self-employed professionals.

In order to obtain a Personal Loan from a bank, you would need to submit an application for the same, in conjunction with a few documents primarily including –

• Identity Proof
• Proof of Residence
• Proof of Employment
• Proof of Income

In addition to the above, most banks require the borrower to have a minimum monthly income. The mandatory income varies from one bank to another, and also varies on the basis of the city where the borrower resides. For instance, only those individuals are eligible for an HDFC Personal Loan who have a minimum income of Rs. 15,000 per month. This requirement is raised to Rs. 20,000 for borrowers residing in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, and Cochin, since the living expenses are comparatively higher in Tier 1 cities.  

Moreover, banks need the borrower to have a minimum experience of 3 years in case of salaried individuals and business owners, and that of at least 2 years for self-employed professionals.

Personal Loan from NBFCs

Non-Banking Financial Companies also offer attractive Personal Loan schemes to salaried as well as non-salaried individuals. One of the advantages of taking a Personal Loan from an NBFC is that the loan processing time and the disbursal time is fairly quick, often less than 24 hours. In fact, in some cases, online applications of eligible candidates are approved in a matter of a few minutes. For instance, when you apply for a IDFC First Personal Loan online, you can get to know your eligibility status within 2 minutes of time.

In addition, most NBFCs are comparatively lenient when it comes to the minimum income requirements, thus ensuring that borrowers who are right at the start of their career, or those with inherently low incomes can also avail the loan.

Then again, NBFCs offer a higher approval rate for borrowers who are self-employed, with no or low experience. Of course, in this case, the interest rate levied on the loan is comparatively higher, as a way of covering for the increased risk proposition.

With NBFCs such as IDFC First, you also have the unprecedented alternative of topping up your Personal Loan, if you need additional funds to fulfill your financial obligations. Although, you must understand that this facility is only available if you are an existing customer.

Recommended: 4 Situations When Taking a Personal Loan Makes Sense

• Personal Loan by Offering Security

There are times when you may not be employed or have a steady source of income but still, need some additional funds. In such cases, it may not be possible for you to get a conventional Personal Loan, which is unsecured. At such times, you can offer a Fixed Deposit account, gold jewellery or gold bars, property, shares, and bonds, or other such assets as security in exchange for the loan amount. This type of loan is known as Secured Personal Loan and you can conveniently avail the same from a bank. Of course, it would prove to be in your favour if you are an existing customer of the bank.

• Personal Loan Against your Credit Limit

If you are in urgent need of money and have a Credit Card under your name, you can apply for a Personal Loan to your Credit Card provider. In this case, your loan amount will be restricted to your available credit limit, however, the approval and disbursal of the amount will be instant. Here again, the interest charged for the loan would be higher than conventional Personal Loans by about 1 to 2.5%. Hence, you must only opt for this alternative if it isn’t possible for you to gain access to the required funds through any of the aforementioned methods.

We hope that you are now aware of some of the best ways to get Personal Loans in India, in a quick and reliable manner. While Personal Loans are readily available, and rather easy to qualify for, these loans are usually offered at a steep interest rate ranging anywhere from 10.5 to 22%. Hence, you should only apply for this credit type if you are in dire need of funds.