In today’s digital world when everything has become online, taking a loan is no longer as difficult and time consuming as before. Earlier, people had to visit the bank for a loan, fill forms, submit many documents and even then it took time to get approval.
But now online loan has become such an option, through which you can apply for a loan in a few minutes sitting at home. In this article, we will tell you how to take a loan online, what things should be kept in mind and on which platforms you can get a loan safely.
What is an Online Loan
An online loan is a loan available through digital medium which you can apply from mobile or laptop without going to the bank. Many banks, non-banking finance companies (NBFCs), and fintech companies work for this.
This process includes uploading documents, completing KYC and choosing the loan amount. As soon as approval is received, the money is transferred directly to your bank account.
Documents Required to Get an Online Loan
Not many documents are required for an online loan. You only need to provide Aadhaar card, PAN card, bank statement (last 3-6 months), and income proof. Some apps or companies process the loan with just Aadhaar and PAN if you have a good CIBIL score.
How to Apply For an Online Loan?
Applying for an online loan is very easy. First of all, you have to go to a trusted loan app or website like PaySense, KreditBee, Navi, Dhani, or the official website of your bank. There you have to fill a small form in which you have to enter your personal information, job details and loan amount.
After that you have to upload the required documents and complete e-KYC. When all your information is verified, the company decides whether you should get a loan or not based on your CIBIL score. If everything goes right, the loan amount is credited to your bank account within a few hours or minutes.
What Things Should be Kept in Mind While Taking an Online Loan?
Taking an online loan is easy, but it is also important to be careful in this. First of all, you should check whether the app or website from which you are taking the loan is registered with RBI or not. Apart from this, the interest rate of the loan, processing fee, and repayment time limit should also be read carefully.
Sometimes some fake apps also claim to give loans and later people face mental problems. Therefore, never take a loan from any app without complete investigation. Always read customer reviews and see the rating on Google Play Store.
Who Can Get an Online Loan?
Online loans are mostly available to people who have a monthly income and a good CIBIL score. However, some platforms also give loans to freelancers or self-employed people.
Some companies also provide education loans for students, but a guarantor is required for it. If you have a permanent income source and your credit history is good, then the chances of getting an online loan are quite high.
Advantages of Online Loans
The biggest advantage of online loans is that you can apply for a loan from anywhere at any time. The entire process is digital, which saves time. There is less paperwork in this and the loan gets approved quickly. Apart from this, some companies also give personal loans without any guarantee or security.
Disadvantages of Online Loans
Just like everything has two aspects, online loans also have some disadvantages. The biggest problem is that sometimes the interest rates are very high and if you are unable to repay the installment on time, then a heavy penalty is imposed. Apart from this, some loan companies harass the customer by calling or messaging repeatedly.
Popular Online Loan Apps in India
There are many trusted loan apps in India through which you can easily take a loan. Some of the names are:
PaySense, KreditBee, CASHe, Nira, Navi, Dhani, MoneyTap, and LazyPay. These apps provide loans for different needs such as personal loan, medical loan, education loan, etc.
Conclusion
Online loan is a very simple, fast and convenient way to meet financial needs. But it is very important to take a thoughtful decision and choose the right platform before taking a loan.
If you take a loan with the right information and caution, then it can be a big help to you, otherwise the wrong choice can put you in financial trouble.
FAQs
Q1. Is online loan safe?
Ans- Yes, if you are taking a loan from an RBI registered bank or NBFC, then it is completely safe.
Q2. What should be the credit score to get an online loan?
Ans- Generally a CIBIL score of 700 or above is considered good. However, some companies also give loans on a score around 600.
Q3. Can an unemployed person also take an online loan?
Ans- Some companies do not give loans to the unemployed, but if you have an alternative income source or a guarantor, then you can get a loan.
Q4. Can an online loan be obtained without documents?
Ans- No, at least Aadhaar, PAN and bank statement are required.
Q5. In how much time does one get an online loan?
Ans- If all the documents are correct and the CIBIL score is good, then the loan can be obtained within a few minutes to a few hours.
