Home FINANCE Here’s How You Can Get an Instant Personal Loan in India

Here’s How You Can Get an Instant Personal Loan in India

by Rohan Mathew
Here's How You Can Get an Instant Personal Loan in India

No matter how well settled all of us are in our personal careers, there comes a time in each one of our lives when we require financial assistance in some form or another. In situations such as these, getting a personal loan from a trusted lender is often the best decision you can take; however, one common issue with most lenders in India continues to remain the fact that they take extended periods of time to approve your application and subsequently disburse the loan amount to your bank account. 

Thus, in today’s article, we will share with you a proven strategy and step-by-step process, by following which you can get a personal loan of upto ₹5 lakhs instantly from anywhere in India. Without further ado, let’s get started. 

How to Get a Personal Loan Instantly?

In order to avail the features of a personal loan instantly, one of the first prerequisite steps is to find a lender who extends the feature of instant disbursement. In order to do so, you can follow the steps outlined below. 

  • Go on to your favorite search engine and type out the query, instant personal loan in India
  • Immediately, you will be presented with a list of lenders who offer this service. Go through each one of the offerings and be mindful of the interest rate they are charging along with the tenure they are extending.
  • Once you have located a lender whose personal loan offering suits you the best, navigate to their official website or download their smartphone application. 
  • Once done, initiate the application by first sharing your personal information, including your name, phone number (must be the same as registered with your Aadhar number), and email address. 
  • Click on Next, and on the next screen, share your income information, which includes your employment type (salaried or self-employed), monthly in-hand income, employer name, etc.
  • On the next screen, share your eKYC documentation (PAN Card and Aadhar Card) and proceed to upload all the necessary documents, which include your income certificate, latest salary slip, 3 months bank statements, last 3 years ITR returns, to name a few. 
  • Once you have uploaded all the documents, wait for the confirmation email from the lender, and once approved, you can proceed to select the loan amount you require. 
  • If everything checks out, your loan application will be approved, and the lender will disburse the loan amount to your bank account in less than 48 hours. 

Eligibility Criteria

In order to avail the features of an instant personal loan in India, there are certain eligibility criterias you need to meet. While the exact components of these might change between lenders, the main constituents remain the same, and they are as shared below. 

  • You must be between the legal age of 21 years and 57 years. 
  • You must be a permanent resident of India for at least the past 5 years. 
  • You must have a residential address in India, along with subsequent proof of residence.
  • You must have your eKYC documents in order, namely your Aadhar Card, PAN Card, and or Driving License and Voter ID, and each of these needs to be subsequently linked to your phone number. 
  • You can be a salaried employee with a minimum working experience of 3 years and a minimum monthly in-hand income of ₹13,500 after taxes. 
  • You can be a self-employed professional with a minimum business vintage of 3 years in the current domain and having a stable monthly income of minimum ₹20,000 in hand. 
  • You must be able to present the required documentation for the loan application (both personal as well as income information). 
  • You must have a CIBIL score of above 650 and an Experian score of above 700 on a scale of 900. 

Tips to Get Quickly Approved

Now that you understand how to go about the process of applying for a personal loan in India, shared below are some helpful tips you can keep in mind to increase your chances of getting approved. 

  • Have a High Credit Score

Irrespective of the lender you approach, one of the first things they will assess in your loan application will be your credit score. Simply put, your credit score can be understood as a numerical value that is assigned to you by the credit rating agency after taking into consideration four main factors

  • The total number of loans you have taken in the past
  • The total amount of credit you have utilized in the past
  • The total number of timely payments you have made
  • The total number of late payments you have made 

Taking all these factors into consideration, you are assigned a score on a scale of 900, and generally, in order to seek faster approvals, it is encouraged that you have a minimum of 750 on 900 across both CIBIL and Experian. 

  • Apply With Limited Lenders

When most of us are seeking out a personal loan, one common strategy we tend to follow is to apply with multiple lenders at the same time in the hopes of getting approved from at least one. While this strategy might look disarming at first glance, in reality, this can have far-reaching negative effects on your overall financial health and approval ratings. 

Let us understand this better. 

As mentioned in the earlier point, there are two main credit rating agencies in India, CIBIL, and Experian, and almost every lender seeks out your credit score from these two agencies. Now, when you put in an application with any lender, and they subsequently request either of these bureaus to provide your credit score, the bureau treats this as a hard request and takes a note of it. If this behavior is repeated more than thrice within a month, the bureau will decrease your overall credit score by a significant number of points, as multiple credit inquiries are interpreted as a sign of desperation and thus lower creditworthiness. 

Thus, if you want to increase your chances of getting approved, make sure that you apply with only one and at max two lenders and no more. 

Conclusion:

As the popularity of a personal loan continues to grow in India, it is becoming increasingly easier and convenient to avail the services of one. Now that you know how to avail the services of an instant personal loan in India, go ahead and apply for one today from your favorite lender.

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