Suresh Mehra, 32, and Ramesh Mehta, 33, have been friends for a long time. They went to the same school and same college. They even took up jobs in the same industry and, earlier this year, they both decided to renovate their houses. Given the cost involved, both Suresh and Ramesh decided to each take a personal loan. Suresh visited many banks to gather information and apply for the loan. Meanwhile, Ramesh applied for the loan online.
Why did Ramesh not do the rounds of banks like Suresh? Why are more and more people availing personal loans online? Here is why:
While Suresh was sweating it out, Ramesh applied for a loan from the comfort of his home. Applying for a loan online is convenient. Collect all the information and apply at the click of a button. Do it anytime, anywhere. You can communicate with the lender online if you have any queries. The online application method cuts out the need to visit the branch.
Easy to compare
When taking a loan, you should compare the rate of interest offered by various banks. This helps you choose the lowest rate and, thereby, pay less interest. By shopping for a loan online, you can compare interest rates offered by different banks. Then choose the cheapest one. There is no need to go from bank to bank to find out rates of interest, as you can get it all right from home.
Access to information
You can find all the information related to different loans on the internet. It is almost like getting it all on a platter. An online search will help you find all the important details. Keep in mind the fees, eligibility criteria, and documents required. You could also look for additional benefits, penalty charges, and repayment terms.
Before you apply for a loan online, check the estimated equated monthly instalment (EMI). Online EMI calculators make the complex calculation process easy for you. If you know the EMI amount, you can figure out whether you can afford it every month. This will help you adjust your loan amount or tenure accordingly.
You do not have to physically visit the bank to submit documents. All you need to do is upload a few important documents online. These include identity proof, address proof, and income proof. The lender could ask for additional documents relating to your occupation as well. If your documents are in order, approval will happen quickly.
The conventional application process involves a stringent approval method. It took Suresh more than two weeks to get his loan approved. Meanwhile, Ramesh got the loan amount in his account within five days. As personal loans are unsecured loans, lenders are cautious while approving them. But the online application process is quick. Expect faster approval if your credit score is good and your documents are in order.
The bottom line
With improvements in technology, you can shop for almost anything online. Under the Digital India campaign, availing personal loans online has become simpler than ever. The convenience and fast approvals encourage potential borrowers to opt for the online method.