With the advent of online loan applications, obtaining Rs.1 lakh loan has become easier than ever. Individuals simply need to meet the eligibility parameters to qualify for the loan and submit the necessary documents to facilitate the process.
To ease this procedure, certain leading financial institutions approve the loan applications within a few hours, which helps individuals meet their emergency financial requirements. Go through the following sections to know how to apply for an urgent Rs.1 lakh loan online.
Steps to apply for Rs.1 lakh loan
Here is a step by step guide to applying for personal loans online:
Step 1: Visit the preferred lender’s website
Step 2: Locate the personal loan tab and click on it
Step 3: Click on ‘Apply Online’
Step 4: Fill the online application form with the necessary KYC details
Step 5: Choose the loan amount
Step 6: Click on ‘Submit’
After following these steps, one needs to wait for the representative to get in touch.
Personal loan eligibility criteria
Personal loans are a form of simple unsecured loans. Thus, they feature stringent eligibility parameters. These parameters differ from lender to lender. However, the most common criteria that financial institutions set for personal loans are as follows:
For salaried individuals
- The applicant must be an Indian national residing in the country
- They must fall within the age group of 21 and 67 years
- The borrower must be employed at a reputed private or public limited company or an MNC
- Must have a CIBIL score of 750 or higher
For self-employed individuals
- The applicant needs to be an Indian citizen residing in the country
- They must be self-employed with a business vintage of at least 3 years
- The borrower must have a CIBIL score of 750 or higher
Evidently, the credit score is a crucial factor that lenders consider before approving loan applications. Thus, individuals seeking to obtain 1 lakh loan must know the things they can do to improve their personal credit scores.
Documents required to obtain Rs.1 lakh loan
Before applying for a personal loan online, one must keep the required documents handy. Similar to personal loan eligibility, the documentation for this credit option also varies from lender to lender.
However, the most common requirements are:
For salaried individuals
- KYC documents
- Previous 2 months’ salary slips
- Employee ID card
- Bank account statements for the previous 3 months
For self-employed individuals
- KYC documents
- Business ownership proof
- Other required financial documents
To facilitate the personal loan application procedure, several leading financial institutions across the country offer personal loans at minimum documentation for existing customers. For instance, selected NBFCs like Bajaj Finserv extend pre-approved offers, which help in streamlining and simplifying the application process. These offers are available across varied financial products, including personal loans and business loans. Individuals can easily check their pre-approved offers by entering a few basic details, such as name and contact details.
However, before making a borrowing decision, it is essential for prospective borrowers to assess whether the lender offers flexible repayment terms or not.
Points to consider before obtaining Rs.1 lakh loan
Before proceeding, prospective borrowers must stay informed about the things to know before signing a personal loan agreement:
Assess the borrowing needs
Before making a borrowing decision, the first step is to determine the associated costs and requirements. One must only avail the required amount to enjoy a hassle-free repayment term. One must take the associated costs of borrowing into consideration, such as the EMIs, processing fees and other charges.
Maintain a good credit score
The credit score is one of the essential factors lenders consider before approving a loan application. This 3-digit numerical code represents a borrower’s creditworthiness. A higher credit score of 750 or above increases an individual’s chances of obtaining a personal loan at reasonable terms.
However, individuals failing to meet this criterion can make timely debt payments and check their credit reports regularly to increase the CIBIL score.
Devise an effective repayment strategy
This is one of the most crucial things to consider before applying for Rs.1 lakh loan. Ideally, a flexible repayment schedule helps individuals in better financial planning. In addition, one must compute monthly instalments before borrowing. This can be easily done through a personal loan calculator.
Through this online tool, prospective borrowers can choose the ideal repayment tenor in relation to the EMIs that they are comfortable repaying without straining their finances.
Considering the factors mentioned above before obtaining Rs.1 lakh loan can help one make an informed borrowing decision. In addition to these, a borrower must also compare different lenders in the market and choose the one offering financing at the most affordable terms.
