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.

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What you need to know before availing a personal loan?

Sometimes expenses come uninvited. Children’s marriage or educational expenses, savings won’t get you through all the costs. It becomes vital for you to avail some sort of assistance from bank, and what better than a personal loan.

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A personal loan, also referred to as unsecured loan, is a financial aid to meet your current expenses. It is the most convenient way to borrow money, since you don’t have to keep any security against it. It is usually convenient for borrowers looking for quick and easy loans with the minimum documentation and paperwork. You also have the flexibility to use the funds as per your convenience without being monitored for the actual end usage.

Most banks offer instant loans without much hassle but there are always hidden terms and conditions. Read on to know what all things you need to keep in check before availing a personal loan.

  • Since it is an unsecured loan, the interest rate is as high as 11%. Know your budget and keep a track of EMI’s you will be required to pay. The amount of loan sanctioned will depend on your repayment capacity.
  • You can only avail a personal loan for emergency expenses such as medical or educational costs. If it is for leisure like a vacation, banks won’t approve of such loan.
  • The amount of personal loan you avail should not be more than 10 % of your salary.
  • Different banks have different rates of interest which is why it is important to research well before you apply for personal loan.
  • Keep a check on your credit score. A bad credit score may lead to rejection of your loan.
  • Do not take multiple personal loans as they will create a negative impact on your credit history.
  • Several financial institutions tend to make lucrative claims, do not fall in such traps.
  • You can use online personal loan calculators, it helps you to accurately calculate the EMI.