Everything You Should Know Before Applying For A Loan Online

Always plan your expenses according to your income, they say. Still, when you can get quick financial aid with just a few swipes and clicks, it becomes easier to make significant decisions without going through a financial crunch. Things have been simplified to a large extent nowadays, unlike when people had to rally around banks, stand in long queues, and give multiple visits to financial institutions because of some or the other flaw in the document or sometimes just because of the bad mood of the manager. If you are looking to apply loan online, you only need an app on your phone.

The app you select can be affiliated with any leading banks that provide loans or through any financial firm that also helps you compare the rate of interest of various organizations. Let us look at the basic requirements when applying for instant money, apart from having the apps on our smartphones.

A soft copy of a passport-size photo will be scanned and submitted with the online form.

ID proof in the form of an Aadhaar card

  • Updated PAN card
  • Residence proof (which may include voter ID, passport, driving license, and any utility bill within the latest three months)
  • Bank statement for the last three months
  • Salary slip for the last three months

Loans can be broadly classified into two types, Standard Term Loan and Pre-approved Loans.

  1. Standard-Term loan: is the lump-sum amount of money provided to the borrowers, usually small businesses, who agree upon specific repayment rules, which can be either upon the fixed or floating interest rate. The latter means that the interest rate may vary throughout the debt obligation period.
  1. Pre-approved loan: It is the loan that the banks themselves offer to their consumers who maintain a sound credit score and strict financial discipline. They pitch in several ways, such as sending them texts, Emails, or social media feeds, and it doesn’t require further document verification. This type of loan can also come under the category of advance loan.

Advance loans are provided to individuals or businesses for their short-term requirements, and the repayment of such loans should be made within a year. The banks strictly select borrowers according to the criteria listed by the RBI (Reserve Bank Of India). Such instant loans serve as a savior to many of our unprecedented needs, such as the sudden plan of going on weekend trips. If your bank account is drained already, but you don’t want to skip this fabulous travel plan with your friends and loved ones, then travel loan is your most convenient option to give it a go.

Similarly, suppose you are running short of funds in your salary account before your next salary date. In that case, some banks provide an advance salary loan with a specified rate of interest varying between 10-12% so that you don’t have to face the awkwardness of asking your employer for the advance salary again and again.

These are some ways you can put technology to its maximum use and benefit yourself financially because banking organizations and financial firms are leaving no stone unturned to be on pace with modern techniques, thus providing consumers with a convenient and sustainable experience.

Related Articles

Back to top button