Why & How to Apply for a Loan Online

Online process of applying for a loan is far more convenient and time-saving as compared to the offline procedure. The borrower gets to compare all the offers available for a particular loan in addition to other benefits as well. Loan is a segment that includes all kind of loans like home loans, personal loans, business loans, mortgage loans, and education loans etc. Having said that, a person can apply loan online for any kind of loan to any lender of their choice. So, here are some of the things you must keep in mind while applying online for a loan:

loan online

  • Check eligibility (use eligibility calculator for a better understanding)
  • Do proper research and select few options
  • Calculate EMI
  • Know your affordability
  • Choose the offer that if affordable to you
  • Seal the deal that suits your wallet

Now, these general steps you can follow for each type of loan. But, as you know different lender have different eligibility and offers. So, you will have to follow the steps depending on the type of the finance you are looking for.

Personal Loan- For instance, if you are looking for a personal loan, the eligibility will be as follows:

Eligibility Criteria-

For Salaried:

  • The applicant must be above 58 years
  • Minimum Net Monthly Income of the applicant should be ₹15,000/-.
  • Good score
  • Minimum work experience of the applicant should be 1 year

For Self-employed:

  • The age of the applicant should be between 24-65 years
  • Net Monthly Income of the applicant should be ₹2 lakhs
  • The applicant must have a minimum work experience of 3 years
  • Good cibil score

Eligibility Calculator

Once you know that you are eligible, you can also have the idea about the loan amount you are eligible for. Thinking about how is this possible without the help of the dealer? Well, the internet has a lot more than what you can even imagine, so there is a calculator to check the eligibility in terms of money. Here is an example for you:

Suppose you are a salaried person with the net monthly income of ₹80,000 and you save around ₹40,000 of your salary every month after you are done with other financial liabilities. Now, you have thought of applying for a personal loan but want to have an idea about how much loan amount you can get. We can have an idea about by assuming the rate, tenure, and amount.  

Amount- ₹1 Lakh

Loan Tenure- 5 years

Rate of Interest- 11.29%-24%

Your monthly EMI will be- ₹2,189-₹2,877

Here is how you can calculate the maximum loan amount

₹1 Lakh x 40000/2189 = ₹18.27 lakhs

₹1 Lakh x 40000/2877 = ₹13.90 lakhs

So, your loan amount eligibility will range between ₹13.90-18.27 lakhs.

Home Loan-

In the case of home loans, the general eligibility criteria asked is:

For Salaried:

  • The applicant’s age should be between 21-60 years
  • Minimum annual income should be at least  ₹1,20,000
  • Minimum work experience should be 2-3 years

For self-employed:

  • The applicant’s age should be between 21-65 years
  • Minimum annual income be at least ₹1,50,000
  • Minimum stability in current profession is required to be at least 3 years

Eligibility Calculator-

Suppose you are a salaried person with the net monthly income of ₹80,000 and you save around ₹40,000 of your salary every month after you are done with other financial liabilities. Now, you have thought of applying for a personal loan but want to have an idea about how much loan amount you can get. We can have an idea about by assuming the rate, tenure, and amount.  

Amount- ₹1 Lakh

Loan Tenure- 15 years

Rate of Interest- 8.35%-11% p.a.

Your monthly EMI will be- ₹976-₹1,137

Here is how you can calculate the maximum loan amount

₹1 Lakh x 40000/976 = ₹40.98 lakhs

₹1 Lakh x 40000/1137 = ₹35.18 lakhs

So, your loan amount eligibility will range between ₹40.98-35.18 lakhs.

How to apply-

You can go to the official website of the lender that you have selected and then follow the steps. Since the process is online, you will for sure a lot of time and get comparatively easy replies also.

Thus it is clear that online process is quicker and easier both with makes it altogether a great deal for you. So, what are you waiting for? Apply now!

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