Online personal loans are a very convenient method of applying for a personal loan from the comfort of your home. The verification process is online as well, so all important documents can be uploaded to the lender’s portal or website. When applying for a loan, several factors need to be taken into consideration, and you must be thorough with the details of how it operates. This includes the interest rate, repayment duration, EMI, and so on.
In this article we are going to understand how online personal loans work, the application process, and the eligibility criteria; more specifically, how to apply for an INR 1.5 lakh personal loan online.
The basic elements of a loan are the amount of money, rate of interest, loan tenure, and EMI. In this case we are looking at a loan amount of INR 1.5 lakhs. The factors that affect the personal loan interest rates include credit score, the age of the applicant, occupation, and repayment capacity. The general range of the interest rate is 11.99%* to 36%* per annum. Deciding the loan tenure is up to the applicant, and the exact interest rate is calculated depending upon the loan amount and tenure. The average loan tenure is between 12 to 60 months.
Finally, the EMI (or Equated Monthly Instalment) is determined based on all of the above factors. To go into detail, here’s the formula used to calculate the EMI:
E = P*r*((1+r)^n/((1+r)^n-1))
Here, P = the loan amount, r = rate of interest, and n = loan tenure in months.
For example, the EMI for a loan of INR 1.5 lakhs with a tenure of 24 months and an interest rate of 11.99%*, would be INR 7,060. Check out this personal loan EMI calculator to find out what your EMI would be according to your requirements.
The application process begins with gathering all the necessary documents. Make sure to have a digital copy of the following basic documents:
Apart from the above, an elaborate list of documents will be required, the details of which you can find on our website. Then, your loan is just a few clicks away! The next step is to enter your mobile number, upload these documents, and wait for the lending entity to get back to you with the verification status update.
The eligibility include the age of the applicant, minimum monthly income, CIBIL score, debt-to-income ratio, etc.
Alternatively, you can use this Personal Loan Eligibility Calculator to quickly check if you fit into the required criteria.
To know more about personal loans, check out SMFG India Credit’s personal loans. The application process is paperless and hassle-free. Moreover, the loan amount is disbursed within 72 hours* of the loan approval. You can choose a loan payback schedule that best matches your financial needs. To apply for an online personal loan, check out SMFG India Credit’s document requirements today!
You can take our personal loan for a variety of reasons.
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