Online loans make acquiring external finance effortless and speedy. This makes them an ideal solution when you want to address both emergent and non-emergent financial needs. Here is everything you need to know about such loans.
What are online loans?
Simply put, loans that can be availed of online with an easy application are called online loans. These loans can also be called instant loans and allow you to access funds in just a few clicks unlike traditional loans, which require you to go through an arduous application procedure at the financial institution’s branch. Bajaj Finserv offers you both secured and unsecured online loans with instant approval.
After viewing its various features and benefits, you can choose one of the many loan offerings and fill up a short application form to begin the process. What’s more, you can submit documents online or request a doorstep documentation pick-up. After your loan request is processed and documents are verified, the loan amount will be disbursed straight to your bank account. As a result, you can apply for a loan conveniently and acquire the funds as and when you need them.
Additional Read: Consumer Durable Loan
Benefits of online loans over offline loans
Online loans are better than offline loans in many ways. Read on below to know some of the advantages that an online loan can provide you with.
1. Greater convenience
You already know that applying for a loan online does away with the need to sacrifice time to visit the branch physically. It is much easier as you can do so whenever you wish to. Apply from your phone or laptop and still attend to everything else on your schedule.
2. Simple application and swift approval
When you apply for an online loan, you get instant loan approval. With fewer steps involved, the approval, processing and disbursal procedures are completed very quickly. For instance, Bajaj Finserv offers a standard term loan in just 5 minutes and a pre-approved loan in just a few seconds.
Additional Read: Benefits of Online Loan
3. Assistance via online tools
The online features of an instant loan aren’t limited to loan applications only. There are other handy tools you can make use of as well. For example, taking an online personal loan from Bajaj Finserv is made easy as you can measure your eligibility and know the loan amount you are eligible for using the eligibility calculator.
Using the EMI calculator, you can also choose the right loan amount and tenor to make EMIs easy on your pocket. With its help, you can calculate the affordability of the loan before applying for the same. This helps you to make better financial decisions and avail of a loan without harming your credit score.
4. Availability of information
With online loans, you can look up the various features, charges, terms and requirements on the lender’s website without putting your credit score on the line. Also, you can refer to the information as many times as you wish to.
What do you need to consider before applying for an online loan?
1. Maintain your credit score
While lenders take your employment, income, job stability, location and more into consideration, your credit score plays a significant role in determining your creditworthiness. A low credit score is a warning to a lender and may lead to rejection so, if your credit score isn’t 750 or higher, work towards improving the same before you apply for a loan.
Additional Read: How to improve CIBIL score
2. Plan the repayment beforehand
Plan repayment in advance to ensure that your loan is easy to manage. Calculate the loan’s affordability using an EMI calculator. Once you know your monthly outflow, you will be able to plan for it more efficiently.
3. Be familiar with loan details
Look up the various loan details before you apply for a loan online. While noting the interest rate, loan amount and tenor, look into additional charges and fees associated with cheque bounces, missed EMIs, delayed payment, foreclosure, part pre-payment, etc. as well.
4. Organise your documents
To prove your eligibility, you will need to submit various documents. So, look up the documentation requirements beforehand, make copies and keep them ready. This will avoid any delay in the loan sanction owing to incorrect documentation.
5. Go through the terms and conditions of the loan
Like every other agreement, you must read the terms and conditions of the online loan as they are legally binding.
Eligibility criteria for online loans
Apart from being a salaried individual, you must meet the following eligibility criteria.
- You must be between 20 and 60 years of age
- You must be a citizen of India, living in the country
- You must have a stable monthly income
If you are a self-employed individual, you will need to meet the loan eligibility criteria listed below:
- Business vintage
- Audited turnover of your business
- Filed income tax returns
- Certificate of practice (if relevant)
Additional Read: Types of business loan
These are the essential eligibility criteria that apply to loans offered by Bajaj Finserv. To find specific information about a loan by another lender, look up the details online or contact the lender. For instance, to avail of a personal loan, the eligibility criterion for age is up to 60 years. However, to avail of a business loan, you must be between 24 years and 70 years. There are also other eligibility and documentation requirements specific to each loan, so check before you proceed.
Fees and charges on online loans
With an online loan, you can access all your loan details on a customer portal anywhere, at any time. You will also benefit from zero statement charges as your loan information will be available online instead of being sent to you by mail. When you borrow from Bajaj Finserv, you can check your details through the Bajaj Experia customer portal. You will have to pay a one-time secure fee to process your online loan application.
Other charges include EMI bounce charges, penal interest, processing fees, foreclosure charges and part-prepayment charges if any. All online loans offered by Bajaj Finserv have an affordable and attractive rate of interest. This keeps the cost of borrowing extremely low. You can also benefit from nil foreclosure and part-prepayment fees when taking a Flexi Loan from Bajaj Finserv.
How to avail of a loan online?
Step 1: Check if you are eligible
Before you can apply for a loan online, it is essential you first check your eligibility to rule out the possibility of rejection. Bajaj Finserv simplifies this by keeping eligibility criteria to a minimum. You can use an online eligibility calculator to check this and find out the loan amount you are eligible for.
Step 2: Estimate your EMIs
Select a loan that will cater to your needs while being easy to repay. Use the EMI calculator to see the EMIs that you will have to pay and look at the total principal and interest payment.
Step 3: Fill the application form
Online loans have shorter application forms that you can fill within minutes in just a few clicks. Once you submit it, you will get instant approval.
Step 4: Prepare your documents
After you receive approval for your loan application, you will need to submit the required documents. So, keep these documents ready, mainly since an online application receives approval quicker. If you are applying for an online loan with Bajaj Finserv, you can also request doorstep documentation pick up.
Step 5: Get funds in your bank account
Once your documents are verified, you will receive the funds in your bank account. Bajaj Finserv offers disbursal within 24 hours of document verification.
What are the various online loans that Bajaj Finserv offers?
Bajaj Finserv offers different types of loans to help you fund all kinds of financial needs. All these loans are available online, and you only need to choose whether you want a secured or unsecured loan.
Here are the loans that self-employed individuals can choose from.
- Business Loan
- Loan Against Property
- Loan Against Securities
- Loans for Doctors
- Loans for Chartered Accountants
So, consider availing of an online loan when you are in need of financial resources to achieve goals and tackle unexpected expenses. The low cost and great features make it convenient and cost-effective.
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