Know How to Avail Off a Personal Loan Without Documents in India
Recent data published by the Reserve Bank of India has reflected that the demand for personal loans in India increased by almost 17% in recent years. The significant increase in demand for this financial product is primarily due to the number of features and benefits it offers.
Personal loans are popular among borrowers due to its collateral free nature, and features such as flexible tenure and quick disbursal. Along with that, certain financial institutions may offer a personal loan without documents if an individual applies for it online or is an existing customer of the organisation. Moreover, in the current situation, visiting the lender’s office physically is not safe either. Hence, this process is gaining more traction.
How to apply for a personal loan with minimum documentation?
To apply for a personal loan without documents, borrowers can follow the steps mentioned below –
Step 1: Prospective borrowers first need to visit the official website of their preferred lender.
Step 2: Fill up the personal loan application form with all the relevant details.
Step 3: After submission, the lender will complete the initial verification.
Step 4: Upon approval, borrowers need to submit all the essential documents online, i.e. by uploading them.
Step 5: Financial institution will now review these documents and check their authenticity.
Step 6: Once this process is complete, and the application is approved, borrowers will receive their money within 24 hours.
Customers should know that it is not possible to avail a personal loan in India without minimum documentation. The government of India has made it a mandate to submit some specific documents to avail any financial services. However, an exception is also there, where lenders may only ask for essential documents and nothing more.
How to avail a personal loan without many additional documents?
Here are some tips that individuals can follow to avail of a credit without any additional documents –
- As an existing customer
In case a borrower is an existing customer of a particular financial institution, then he/she can skip the lengthy process of documentation and avail a personal loan without documents. The lender will already have all the necessary documents and can access the financial history of that particular individual. Therefore, they can provide this opportunity.
- Having a high credit score
Credit score plays a pivotal role in any loan application. Borrowers who maintain a high CIBIL score are considered to be less prone to defaulting and may enjoy certain features and benefits from their lender. For example, lenders may not ask for certain documents, like proof of income, to attest to the eligibility criteria while they take an instant loan.
- Select a lender who provides pre-approved offers
To skip over the lengthy documentation process, individuals can opt for a lender who provides pre-approved offers to their clients. One such financial institution is Bajaj Finserv. Borrowers can avail competitive flat interest rate, flexible tenure, and quick disbursal features on personal loan offered by the company.
Additionally, the company has introduced pre-approved offers to streamline this loan application process and make it less time-consuming. This offer is also available for other financial products like business loans, credit card, etc. Applicants can check their pre-approved offers by submitting their essential contact details.
What are the eligibility criteria for availing a personal loan?
The eligibility criteria for personal loans are very straightforward. Here are the vital ones –
- Age: 25-57 years.
- Credit score: Minimum 750 and above.
- Monthly income: Varies based on the city from where an applicant is applying.
- Employment Type: Must be an employee of any MNC, Private or Public sector organisation.
Apart from these, a lender may have additional requirements as well. In that case, the applicant needs to fulfil that too.
Top 4 points to consider before availing a personal loan
With the emergence of the online application process, availing a personal loan or any type of credit has become extremely convenient. Nevertheless, individuals who are planning to avail such an advance need to keep in mind a few factors before signing a personal loan agreement.
1) Interest rate: Personal loan interest rate varies from one lender to another; thus, it is better to do thorough market research to avail a competitive interest rate.
2) Terms and conditions: It is essential to read the terms and conditions of any loan before availing it. It helps individuals to understand the product and eliminate the chances of any future complications.
3) Hidden charges: Every Personal loans has some additional charges associated with them that borrowers may not notice in the first place. Fees like processing fee, statement charges, etc. add up to the cost of borrowing. Therefore, customers must gather information regarding these payments before applying.
4) Financial planning: Having financial planning in place before availing a loan will help borrowers to repay the loan without any hassle. One can use personal loan calculators available online for this purpose.
Availing of any financial service in India requires submitting certain specific documents. However, if a borrower can avail a pre-approved offer, then he/she may get a chance to secure a personal loan without documents.