Published on Dec 4, 2024
Did you know that up to 77% of working individuals in India rely on a personal loan to meet their financial requirements? From managing unexpected expenses to consolidating debts, a personal loan can help out in many situations. With the rise of digital personal loan products, securing the financing you need is quicker and more convenient than ever.
If you want to avoid lengthy paperwork and multiple visits to lender branches, a digital personal loan might be the perfect solution. In this article, we’ll cover everything you need to know about these loans – what they are, who qualifies, and how to apply for one.
A digital personal loan, often referred to as an online personal loan or an instant* personal loan, does not require applicants to pledge any collateral in exchange for funds. Every part of the digital loan application process, including submitting documents, happens entirely online. These loans are ideal for those seeking fast personal loan approval, as many lending companies offer same-day approvals and disburse funds within hours of approval.
Unlike traditional offline lenders, applicants do not need to wait in long queues or make multiple visits to resolve queries. With a digital personal loan, you can easily reach out to lenders via their official websites to address any concerns regarding loan terms.
However, there are a few things you must keep in mind when opting for a digital personal loan. While it can be an attractive option for those who prefer not to pledge collateral, it’s crucial to ensure that the personal loan terms align with your financial situation. Specifically, you should assess whether the loan amount, interest rate, and tenure are manageable and won’t negatively impact your finances in the future.
Factors such as your credit score, income, employment type, and existing debts can significantly affect your digital personal loan eligibility. A strong credit score and lower existing financial obligations can increase your chances of securing a low-interest personal loan. It is always a good idea to evaluate your current financial situation and use online personal loan eligibility calculators to get an estimate of how much loan you may be able to qualify for.
Overall, a digital personal loan can be an excellent way to handle sudden financial requirements with minimal hassle. Thanks to the simplicity of the online personal loan application process, getting a personal loan is straightforward. Be sure to research and choose a reliable lending company by reviewing online feedback and checking their RBI registration, which can give you insight into the fairness of their terms and conditions. Once you’ve selected your lender, you can assess your eligibility and apply according to their guidelines.
To successfully access a digital personal loan, you must meet some basic eligibility requirements, such as lender-specific age requirements and have a credit score of at least 750. You must also be a resident citizen of India with a stable income and a reliable employment history. Keep in mind that the specific eligibility criteria can vary from one lender to another, so it’s important to check the requirements of your chosen lender before applying.
If you are eligible for a digital personal loan, start by visiting your lender’s website and locating their online application form. You will typically be asked to provide some basic personal information, such as your mobile number, PAN card number, and PIN code. To proceed with the application, make sure that you validate your contact information using an OTP (One-Time Password).
Next, complete the application by providing more details related to your income and employment. Scan and upload all required documents as requested by the lender.
Once you’ve submitted your personal loan application, wait for the lending institution to review your information. If necessary, a representative from the lender may request additional details. If your profile meets the eligibility criteria, you will receive a customised loan offer. If you are satisfied with the terms presented to you, sign the agreement and wait for the approved loan amount to be credited to your account.
Taking a digital personal loan can save you considerable time and effort, owing to minimal documentation requirements and quick processing times. However, it's essential to compare different lenders, check their credibility, and carefully review the terms to make an informed decision.
At SMFG India Credit, you can apply for personal loans of up to INR 30 lakhs* with attractive interest rates, minimal documentation, and no hidden fees. Before applying online, we recommend using our free EMI calculator to estimate your monthly payments.
* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us
Interest rates vary by lending company and depend on factors such as the applicant’s credit score, income, employment type, and repayment capacity. At SMFG India Credit, interest rates on personal loans start from 13%* per annum.
Digital personal loans typically offer flexible repayment tenures, ranging from 12 to 60 months. However, the specific tenure available may vary depending on the lender and the applicant's profile.
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