A personal loan is an excellent financing option for meeting big-ticket personal and professional expenses. This credit option features no end-use restrictions and thus, has gained immense popularity in recent years. As per the RBI data, the personal loan portfolio of India grew by around Rs.29.18 lakh crore in September 2021.
That said, many leading financial institutions across the country extend online application facilities, which has made it even more convenient for individuals to avail 2 lakh loan. The following sections discuss the steps to obtain this credit option online, its eligibility and the documents required.
How to apply for Rs.2 lakh loan online?
Applying for a personal loan online is simple and convenient. One simply needs to follow these steps:
Step 1: Visit the website of a preferred lender
Step 2: Visit the personal loan page and click on ‘Apply Now’
Step 3: Fill up the application form with KYC and income details
Step 4: Choose the required loan amount
Step 5: Submit the application
Following this, one must wait for the representative to get in touch regarding the further process.
What is the eligibility to apply for Rs.2 lakh loan?
Although personal loan eligibility varies from lender to lender, a few standard parameters are:
For salaried employees
- Nationality: Indian
- Employment status: Salaried with a private or public limited company or an MNC
- Age: 21 – 67 years
- CIBIL score: 750+
For self-employed individuals
- Nationality: Indian
- Business vintage: At least 3 years
- CIBIL score: 750+
Besides these, salaried employees are also required to meet the city-wise minimum income criteria to obtain Rs.2 lakh loan at reasonable terms. Further, one of the most crucial things to remember concerning personal loan eligibility is the CIBIL score. This 3-digit numerical value decides a borrower’s creditworthiness and is an essential factor that lenders consider before approving loan applications. That said, individuals can still get a personal loan with a poor credit score. However, in such a situation, the cost of borrowing would increase significantly.
Meeting or exceeding these eligibility parameters carry added benefits for existing customers. For instance, leading financial institutions like Bajaj Finserv extend pre-approved offers to existing customers who meet the eligibility criteria. These offers are available on various financial products, such as personal loans and business loans, and help simplify and streamline the loan application procedure. Individuals can check their pre-approved offers within seconds by entering their names and contact details.
What are the documents required to apply for Rs.2 lakh loan?
Before applying for a personal loan online, one must keep the following documents handy for a hassle-free application process:
For salaried employees
- KYC documents, such as Aadhaar card, PAN card, Voter ID card, etc.
- Employee ID card
- Bank account statement for the previous 3 months
- Latest salary slips
For self-employed individuals
- KYC documents, such as Aadhaar card, PAN card, Voter ID card, etc.
- Business ownership proof
- Other income-related documents
Remember that the list of documents required to apply for a personal loan might vary from one lender to another. Thus, one must have a thorough conversation with the financial institution beforehand.
Points to consider before taking Rs.2 lakh loan
Before proceeding with the personal loan application, there are a few pointers that prospective borrowers must consider. Considering the following factors will improve one’s chances of loan approval:
-
Maintain a decent credit score
This is the most crucial factor when it comes to personal lending. Financial institutions determine borrowers’ creditworthiness through a 3-digit code, called the credit or CIBIL score. Ideally, one should have a high CIBIL score of more than 750 to enjoy faster loan approvals.
One can maintain a decent CIBIL score by paying dues on time and maintaining a healthy credit mix.
-
Compare different lenders
Before making a borrowing decision, prospective borrowers must compare different lenders in the market and avail a better interest rate for their personal loan. This will help one devise a better loan repayment strategy and pay off the EMIs timely.
Another way to ensure timely loan repayments is using a personal loan EMI calculator. This online tool is of huge help when it comes to calculating the monthly instalments concerning loan tenor and principal amount. One can also alter the figures using the sliders to make an informed decision.
-
Know the additional costs
One must know that a personal loan comes with additional fees and charges, such as EMI bounce charges, penal interest, and processing fees. Therefore, before applying for a personal loan, a prospective borrower must assess all the fees charged by their lender to draft a clear picture of the expenditure.
Following the factors mentioned above would assist one in making an informed decision by choosing an affordable borrowing option. Apart from these, one must also assess their repayment capacity before obtaining Rs.2 lakh loan.