Personal loans are unsecured loans that can help you finance your expenditure. Here unsecured means that lenders grant personal loans without asking for collateral. In this modern age, with the emergence of Fintech, it has become easier for the common public to get an instant loan online, and that too without submitting the documents. However, if you want to get an instant loan without documents, you will have to meet the personal loan eligibility specified by the lending institution. So now, people need not wait for their appointment with bank managers or intermediaries and go through exhausting paperwork and time-consuming personal loan application process to get a personal loan. This guide will inform you how to get an instant loan without documents.
How to Secure instant Personal Loan Without Documents?
Here are key things that you need to do to get instant personal loans online without documents:
1) Approaching your existing bank:
Approaching the financial institution with which you already have a relationship is the best chance to get instant cash loans. It takes time to build a relationship of trust with anyone, specifically banks. And trust is the most significant factor influencing your chance of securing an instant personal loan from the lender.
The relationship of trust with banks is cultivated with how you maintain balance in your account, create deposits with a financial institution, and avail of its services. A long-term relationship with banks enables them to figure out your financial habits. And if your financial habits are positive and you meet their eligibility criteria, your application for an instant loan is approved quickly by banks. Even approved funds are disbursed and deposited in your saving account within hours.
2) Ensure you have a strong CIBIL score:
A strong CIBIL score implies that you have good credit repayment behavior. A CIBIL score helps financial institutions know if you are likely to repay your instant loan online within the stipulated time duration or not. Some ways that you can use to ensure a good credit score are repaying your past loans and other outstanding debts on time.
Additionally, avoid defaulting on your credit card or EMIs dues, as it can affect your loan approval process. Usually, banks and other financial institutions prefer granting personal loans to an individual with a credit score of more than 600. Some banks have set the CIBIL score limit at 750 or higher.
3) Check your debt-to-income ratio:
Another factor that could affect the approval of your loan online application without documents is the debt-to-income ratio. If your existing debts are higher than your monthly income, then you are not creditworthy to grant a loan. According to banks, a person should ensure their debt-to-income ratio is 50% or below. This particular debt-to-income ratio will reassure the lender that you are financially capable of repaying the loan. Thus, it will be easier for you to obtain a document-free instant loan.
4) Pick from the available pre-approvals:
Pre-approved offers are always the best choice if you need quick cash but can’t wait to submit paperwork. Pre-approval offers are frequently floated for consumers who match the qualifying conditions set by the lender. Your current financial situation and credit score are used to determine eligibility for these deals.
Thus, taking advantage of these pre-approved deals would spare you the trouble of starting the personal loan application approach from the ground – up. Also, no extra paperwork is required. It’s also possible to have a loan sanctioned at a fair interest rate if you get pre-approved.
Eligibility Criteria for Instant Personal Loan
You can apply for the instant personal loan online without documents if you meet the following mentioned eligibility criteria:
- An applicant’s nationality must be Indian
- The minimum age limit for the applicant is 21 years, and the maximum age limit is 67 years.
- An applicant’s CIBIL score must be 750 or higher.
- The applicant’s monthly income must be Rs 22,000, which can vary based on the residing city.
It is to be noted that these basic five eligibility criteria varied from bank to bank. So, you should consider checking the eligibility criteria of the lending institution you are approaching for an instant personal loan without documents.
Stepwise Procedure to Apply for an Instant Personal Loan
First, you must select the bank where you will apply for the instant personal loan without documents. It is only after that you can follow the below-listed steps for an instant personal loan application:
Step 1: Visit the official website of the selected financial institution.
Step 2: Next, open the personal loan application webpage and click the ‘Apply’ button to open the online application form.
Step 3: Once you open the loan application form, you will be asked to enter your 10-digit mobile number to verify the OTP sent to your phone.
Step 4: After verifying the OTP, you will be asked to fill in the instant personal loan application form. You must fill out basic details like your full name, date of birth, PIN code, and PAN.
Step 5: Enter the amount you want to get the personal loan and choose the repayment tenure and EMIs. Some banks provide a range for repayment tenure and EMIs, and you have to select one option according to your convenience.
Step 6: You must complete your KYC by submitting soft copies of your ID and address proof documents.
Step 7: In the final step, submit your instant personal loan application.
After receiving your loan application form, the lending institution will verify your ID and address with their pre-existing records. Also, it will be checked if you meet its eligibility criteria or not. Once all formalities have been completed, and it is ensured that you have a good financial status or repayment capability, your loans online application is approved. The approved loan amount is disbursed and deposited into your savings accounts within 24 to 48 hours.
Conclusion
The advent of technology and digitization of the banking sector has completely changed how financial transactions occur between lenders and borrowers. For instance, you can now apply for an instant loan online without documents after meeting personal loan eligibility. As a result, not only has it become convenient for borrowers to apply for a loan online, but it has also become much easier for lending institutions to conduct the verification process. Additionally, fast-track personal loan disbursement has become possible with online loan application and verification.
