Recent data published by the Federal Reserve Bank of India has reflected that the demand for private loans in India increased by almost 17% in recent years. the many increase in demand for this financial product is primarily thanks to the amount of features and benefits it offers.
Personal loans are popular among borrowers thanks to its collateral free nature, and features like flexible tenure and quick disbursal. along side that, certain financial institutions may offer a private loan without documents if a private applies for it online or is an existing customer of the organisation. Moreover, within the current situation, visiting the lender’s office physically isn’t safe either. Hence, this process is gaining more traction.
How to apply for a private loan with minimum documentation?
To apply for a private loan without documents, borrowers can follow the steps mentioned below –
Step 1: Prospective borrowers first got to visit the official website of their preferred lender.
Step 2: refill the private application form with all the relevant details.
Step 3: After submission, the lender will complete the initial verification.
Step 4: Upon approval, borrowers got to submit all the essential documents online, i.e. by uploading them.
Step 5: financial organization will now review these documents and check their authenticity.
Step 6: Once this process is complete, and therefore the application is approved, borrowers will receive their money within 24 hours.
Customers should know that it’s impossible to avail a private loan in India without minimum documentation. the govt of India has made it a mandate to submit some specific documents to avail any financial services. However, an exception is additionally there, where lenders may only invite essential documents and zip more.
How to avail a private loan without many additional documents?
Here are some tips that individuals can follow to avail of a credit with none additional documents –
As an existing customer
In case a borrower is an existing customer of a specific financial organization , then he/she can skip the lengthy process of documentation and avail a private loan without documents. The lender will have already got all the required documents and may access the financial history of that specific individual. Therefore, they will provide this chance .
Having a high credit score
Credit score plays a pivotal role in any application . Borrowers who maintain a high CIBIL score are considered to be less susceptible to defaulting and should enjoy certain features and benefits from their lender. for instance , lenders might not invite certain documents, like proof of income, to attest to the eligibility criteria while they take a moment loan.
Select a lender who provides pre-approved offers
To jump the lengthy documentation process, individuals can choose a lender who provides pre-approved offers to their clients. One such financial organization is Bajaj Finserv. Borrowers can avail competitive flat rate of interest , flexible tenure, and quick disbursal features on consumer loan offered by the corporate .
Additionally, the corporate has introduced pre-approved offers to streamline this application process and make it less time-consuming. This offer is additionally available for other financial products like business loans, mastercard , etc. Applicants can check their pre-approved offers by submitting their essential contact details.
What are the eligibility criteria for availing a private loan?
The eligibility criteria for private loans are very straightforward. Here are the vital ones –
Age: 25-57 years.
Credit score: Minimum 750 and above.
Monthly income: Varies supported the town 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 also . therein case, the applicant must fulfil that too.
Top 4 points to think about before availing a private loan
With the emergence of the web application process, availing a private loan or any sort of credit has become extremely convenient. Nevertheless, individuals who are getting to avail such an advance got to confine mind a couple of factors before signing a private loan agreement.
1) Interest rate: consumer loan rate of interest varies from one lender to another; thus, it’s better to try to to thorough marketing research to avail a competitive rate of interest .
2) Terms and conditions: it’s essential to read the terms and conditions of any loan before availing it. It helps individuals to know the merchandise and eliminate the probabilities of any future complications.
3) Hidden charges: Every Personal loans has some additional charges related to them that borrowers might not notice within the first place. Fees like processing fee, statement charges, etc. add up to the value of borrowing. Therefore, customers must gather information regarding these payments before applying.
4) Financial planning: Having financial planning in situ before availing a loan will help borrowers to repay the loan with none hassle. One can use consumer 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 an opportunity to secure a private loan without documents.