All you need to know about online loans

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 that you need to know about such loans.

What are online loans?

Simply put, loans that can be availed 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 Finance offers you both secured and unsecured online loans with instant approval.

After viewing its various features and benefits, you may be able to choose one of the many loan offerings and fill up a short application form to begin the process. What is 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: How to Apply for Personal 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 Finance offers a standard term loan in just 5 minutes and a pre-approved loan in just a few seconds.

Additional Read: Personal Loan For Surgery

3. Assistance via online tools

The online features of an instant loan are not limited to loan applications only. There are other handy tools that you can make use of as well. For example, taking an online personal loan from Bajaj Finance is made easy as you can measure your eligibility and know the loan amount that you are eligible for using the eligibility calculator.

Using the EMI calculator, you can also choose the right loan amount and tenure 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.

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 is not 685 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 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 tenure, look into additional charges 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

You must meet the following eligibility criteria apart from being a salaried individual.

• You must be between 21 years to 80 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: Document Requirement For Personal Loan

These are the essential eligibility criteria that apply to loans offered by Bajaj Finance. To find specific information about a loan from 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 80 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 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 Finance, you can check your details through the Customer Portal. You will have to pay a one-time secure fee to process your online loan application.

Personal loan interest rates and charges include EMI bounce charges, penal interest, processing fees, foreclosure charges, and part-prepayment charges if any. All online loans offered by Bajaj Finance 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 Finance.

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 Finance 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 payments.

Step 3: Fill out the application form

Online loans have shorter application forms that you can fill out 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 Finance, 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 Finance offers disbursals within 24 hours of document verification.

What are the various online loans that Bajaj Finance offers?

Bajaj Finserv provides a diverse range of loan products designed to meet various financial requirements. Whether you're looking to fund personal expenses, purchase a home, or leverage your assets, Bajaj Finserv offers convenient online options. You can select between secured and unsecured loans based on your preferences and financial situation. Here's a closer look at their offerings:

Personal Loan

Personal Loans are ideal for covering unexpected expenses or fulfilling personal goals. These loans are unsecured, meaning you don't need to pledge any collateral. With flexible repayment terms and competitive interest rates, you can borrow a substantial amount to manage medical bills, travel, or home renovations. The application process for personal loan is straightforward and conducted entirely online, offering convenience and quick approval.

Home Loan

If you're aiming to buy your dream home or renovate your existing property, home loans offer an excellent solution. These loans are secured against the property you're purchasing or renovating. Home loan come with attractive interest rates and extended repayment periods, making them accessible and affordable. The online application process simplifies the experience, allowing you to apply from the comfort of your home.

Home Loan Balance Transfer

For those looking to transfer their existing home loan to a new lender for better terms, the home loan balance transfer option is highly beneficial. This service allows you to consolidate your outstanding home loan balance, often at lower interest rates, which can lead to significant savings over the life of the loan. The online application process is streamlined, making it easy to manage the transfer from start to finish.

Loan Against Property

A Loan Against Property is a secured loan where you can leverage your residential or commercial property to obtain funds. This type of loan offers substantial amounts with competitive interest rates and longer repayment periods. It's an excellent option for those needing capital for business expansion, education, or other major expenses. The online application process allows for quick and easy access to funds, with minimal documentation required.

Loan Against Securities

Loan Against Securities allows you to borrow funds by pledging your financial securities such as stocks, bonds, or mutual funds. This secured loan provides access to liquidity while keeping your investments intact. With attractive interest rates and flexible repayment options, Loan against shares are an ideal choice for those looking to fund personal or business expenses without liquidating their assets. The entire application process is conducted online, offering a seamless experience with quick approval and minimal paperwork.

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 need financial resources to achieve goals and tackle unexpected expenses. The low cost and great features make it convenient and cost-effective.

*Terms and conditions apply.