5 Benefits Of Applying For An Online Personal Loan

Consumers often apply for a personal loan when they are in need of cash. From emergency monetary needs to unforeseen expenses, a personal loan is a lifesaver for many.

Many banks these days have an online presence and customers are embracing the digital way of banking. More and more people are applying for online personal loans too after understanding the benefits. It’s time saving and easier compared to the traditional method of applying for a personal loan.

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Here are some of the best benefits you can enjoy when you go online and apply for a personal loan.

  1. It is convenient

The most appealing benefit of applying for a personal loan online is convenience. You visit the bank’s website, fill out the application form, and attach the requisite documents. There is no need to visit the banks n number of times, for all the details are available on the website. You can apply for a personal loan from the comforts of your home or office or wherever you want. It’s time-saving and convenient.

  1. You get low rates of interest

Applicants who apply for their personal loan online enjoy low rates of interest as well. Increased use of a bank’s online offerings reduces the bank’s dependence on physical assets such as office space, storage rooms, electricity, and even staff. It’s cost-effective and banks, therefore, offer lower interest rates for loans.

  1. Instant EMI calculation

EMI stands for Equated Monthly Instalment. It is the set amount (principal + interest) of the loan you pay back to the bank. When you apply for an online personal loan, bank websites offer a tool called EMI calculator. It’s a useful tool where you enter a few details and calculator displays the EMI you will need to pay.

  1. Easy Comparison

The internet has made easy the process of applying for loans and even comparing them. You can visit website aggregators which list different banks’ personal loan offerings along with their details such as –tenure, EMI, the rate of interest, etc.  Compare different banks and make an informed choice.

  1. Freedom from pesky agents

You visit a bank to enquire about a personal loan. The bank takes down your contact number while collecting customer information. In the next few days, you get lots of messages and phone calls from many banks regarding a personal loan. It’s annoying, to say the least.

When you apply for a personal loan online, the details you enter are secure. There’s no risk of pesky agents calling you every now and then.

The internet has changed the way people apply for loans. It’s quick, hassle free, and offers a lot of benefits; something traditional banking lacked. Such benefits are drawing more and more customers towards digital banking.

What do you need to know about UPI?

Making payments is no longer a hassle with the recently introduced UPI system by the National Payments Corporation of India with the founder, Reserve Bank of India. It came into operations on 11 April, 2016. This is a single payment platform which powers a number of banks together in order to provide services to customers. There are 30 banks that have joined this system. These include public and private sector banks such as HDFC Bank, Axis Bank, Punjab National Bank, ICICI Bank, State Bank of India and many others. The main aim of UPI is to enable transfer of money between two bank accounts with the use of a smartphone.

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With the use of UPI, you don’t have to type out all the details of your credit card or any other for the purpose of any transaction. This is because you can make direct payments through this app from one bank account, either online or offline, to different merchants. Every participating bank has its own UPI app which is available on Google Playstore. If you are wondering what kind of transactions can you make on this app, well, it could be anything such as paying for your child’s tuition fees or payment to any other person that you need to make from a vendor to a relative.

There is no time restriction when it comes to the functioning of Unified Payment Interface. There is a transaction limit on the use of UPI which is Rs. 1 lakh on every transaction. In terms of safety of the app, it is very secure and reliable. It is only the virtual address of the customer that is shared. There is no other information that is revealed. After the announcement of demonetisation, UPI comes across as a great mode of payment for many people in the country. For example, you can use Axis Pay if you have a bank account with Axis Bank for transactions.