There are times when emergencies come out of the blue without warning. Moreover, as you grow up, your responsibility starts increasing. Whether buying a car/motorcycle, purchasing a house, sponsoring a journey or wedding, setting up a business, or managing an unexpected emergency situation, a personal loan makes it easy to get the funds needed to fulfil your financial aspirations.
Earlier, a borrower wasted precious time physically visiting banks and lenders to get the required funds. With the advent of various players in the market, including NBFCs, availing of a personal loan has become seamless. For instance, with the Fullerton India online personal loan process, one can submit and process their personal loan application digitally from the comfort of their homes.
Fullerton India’s online personal loan application process is straightforward. All you need to do is decide the loan amount by analysing your financial needs, open the personal loan EMI calculator to select a tenure based on the EMI amount, upload your documents online, and submit the application.
The following sections explain the top five reasons people prefer personal loans more than other loans:-
1. No Security Needed
An online personal loan is a 100% no-collateral loan. Unlike loans like home, auto, or loan against property, you do not need to pledge any asset to avail a personal loan. Indian lenders generally evaluate five factors before approving a personal loan; these include:
- The borrower’s age
- Annual income
- Existing debts
- Applicant’s nature of employment and work experience
- Credit score & history
If you want to get the best rates, it is advisable to maintain an excellent credit score. Typically, lenders consider a credit score of 750 and above for accepting personal loan applications. Lenders also prefer borrowers with a stable monthly/annual income and sufficient work experience. Applicants who spend more than 50-60% of their monthly income in repaying existing debts can expect loan rejection or extremely high-interest rates on a personal loan. Moreover, you must be an Indian citizen between 18 and 60 to secure a personal loan. Applicants must have required documentation such as PAN and income proof.
2. Get a Large Loan Amount and Fulfil Your Financial Goals
Depending on the lender, you can get a loan amount of up to INR 25 lakhs. However, the maximum loan amount one can get depends on the borrower’s monthly income, existing debts, credit score, etc. as well as the lender’s policy. Depending on your eligibility, you could get personal loan interest rates as low as 11.99% per annum. You can use a free personal loan EMI calculator to check the EMI amount and make an informed choice.
Since it is a personal loan, you get the freedom to spend the funds whichever way you want. Hence, you can use the loan amount to construct/renovate/improve a house, buy motor vehicles, sponsor a foreign trip, purchase expensive gifts, fund a birthday party or wedding, or set up a business. Alternatively, you may use the loan amount to clear existing debt or pay medical bills. Hence, a personal loan is best-suited to let you fulfil any aspiration or manage an emergency.
3. Instant Loan Approval Makes the Deal Sweeter
Gone are the days when queues were the first thing to cross a borrower’s mind when they thought of applying for a loan. Presently, you can experience instant loan approval subject to the fulfilment of the eligibility criteria. Reputed lenders provide a seamless application procedure for online personal loan applicants.
You can use a personal loan EMI calculator to decide the loan amount and make an account by entering your name, mobile number, and email ID. After your account gets created, you can upload your documents and apply for a personal loan. The lender scans your documents and informs you of the loan amount and interest rate.
Generally, the whole process takes between 24 and 48 business hours. However, after the in-principle approval of the loan, you need to send the documents to the lender.
4. An Extended Term to Repay Your EMIs Conveniently
The tenure for a personal loan ranges between one and five years. If you opt for a short tenure, the EMI will be higher. Similarly, the EMIs will be more affordable if you choose a long term. It is wise to check the EMI amount on a personal loan EMI calculator before proceeding.
As mentioned above, the loan amount depends on the borrower’s eligibility, and the EMI depends on the loan amount. And, selecting the loan amount often plays a significant role in determining the loan approval. Keeping the EMI amount at less than 60% of your net monthly income is advisable. So, if you earn INR 1 lakh a month, the resulting EMI must not cross INR 60,000 per month. As a fact, the lower the loan amount, the better the chances of loan approval.
5. Better than Credit Cards or loans against Property
Some borrowers consider an online personal loan better than a loan against property or credit card. Unlike a loan against property, a personal loan is collateral-free. Also, the interest rate of a personal loan is much lower than credit cards. Hence, a personal loan can be an excellent choice for getting low-interest collateral-free funds.
Conclusion
Now that you know the top reasons people apply for online personal loans put your knowledge to use and apply for a personal loan. You can check an EMI calculator or an APR calculator to estimate the loan cost and make a prudent decision.