Go Paperless Personal Loan Without Documents
A personal loan is probably one of the best ways to borrow money to fulfil your dreams and aspirations without facing any financial distress. It can help you buy a house, finance the higher education of your children, or even cover your medical bills. The best thing is that you are not accountable to the lender regarding the reason for which you are applying for the loan. In today’s time, a personal loan can give you the financial leverage that you have always wanted.
However, during a crisis, you might want the loan amount to be disbursed as soon as possible. And in that case, you might think of eliminating unnecessary paperwork, delays, formalities, and document submissions. But is it possible to get a personal loan paperless, without the documents?
Read this article to find out. We will talk about personal loans, their features and eligibility, and the paperless process to apply for them.
Personal Loans: Meaning and Significance
Personal loans are financial instruments that you borrow from lenders without putting up collateral. These loans are applied to meet various personal needs like financing a wedding, covering medical bills, making a trip to a destination, or even clearing a down payment. These loans are quite popular in India as they are highly flexible and have comparatively low rates of interest. In addition, you can get approved for a personal loan within a very short period of time.
Because these loans do not require collateral, you do not have to pledge any of your assets, such as real estate, to obtain the loan amount. As a result, these loans are unsecured and easier to obtain as compared to other types of loans. The terms and conditions of the loan vary from bank to bank and depend on the individual’s credentials.
What are the features and benefits of a personal loan?
There are many features and benefits of a personal loan, and they are:
- Higher loan amount:
The loan amount for a personal loan can go as high as 40 lakhs and in some cases even more than that depending on your credentials.
- Low rate of interest:
Despite being an unsecured loan, the interest rate on a personal loan ranges from 10.5% to 24% per year. These numbers are highly variable and depend on the borrower’s credentials and the bank.
- Free from collateral:
Personal loans do not require collateral to get approved; you can easily apply for them even if you don’t have a property or security deposit to use as a guarantee.
- Flexible tenure:
The tenure of repayment of a personal loan is highly flexible, which gives you the advantage of having enough time to plan your finances. The period of repayment of a personal loan varies from 12 months to 84 months.
- Flexible terms and conditions:
In addition to a flexible tenure, a personal loan has flexible terms and conditions as well. You have the freedom to choose the type of interest rate, the type of loan, the loan amount, etc.
How to get a personal loan without any documents?
To get a personal loan without any documents, you have to focus on the following things:
- Focusing on your loan history:
Creditworthiness is a very important thing that the lender looks for in borrowers. You must make sure that you pay all your existing dues to make your loan history flawless. So, you have to pay your credit card bills and loan EMIs on time to ensure that you are loanworthy. You should also avoid defaulting on loans and delaying payments.
- Levelling up your credit score:
Your credit score should be at least 750 to get a personal loan without documents. Your CIBIL score plays an important role in enhancing your eligibility for a personal loan. Any type of dues might affect your credit score, and the more it’s negatively affected, the chances of getting a loan without documents get lesser as well.
- Maintain a standard debt-to-income ratio:
You should also focus on your debt-to-income ratio before applying for a paperless personal loan. Your debt-to-income ratio must be less than 50%. The lower your debt-to-income ratio, the better your ability to repay.
- Relationship with your lender:
This is another important thing that you must consider while going for a personal loan without any documents. If your relationship with your lender is decent and you are a regular customer of the bank, your chances of getting the loan sanctioned within a short span without any documents will be easy.
- Approach for online mode:
If you want your loan to be processed within a short period, you should opt for the online mode when applying for a personal loan rather than focusing on the offline mode. After COVID, many banks and NBFCs chose the online mode to give loans to people to decrease delays and help people during emergencies. So, you can prefer an online mode to fill out your application instead of choosing an offline mode.
Summing it up:
Getting a personal loan without any documents is easy, but you need to make sure that you have enough eligibility to cover that. You should make sure to show the lender that you have the financial muscle to tackle the stress of repayment. In case of emergencies, banks and NBFCs disburse the loan amount to the borrowers immediately if they find them creditworthy.