Ever since financial transactions began, there has been the existence of personal loans. These personal loans in the early days were secure in nature because you had to give something of value in exchange for cash. Mostly, money lenders would keep your land documents if you had money requirements because that was the most valuable document. But, gradually, with the introduction of the banking system, taking a personal loan got easier. With the rapid evolution of technology and financial institutions, obtaining a personal loan is much simpler. As a result, even the personal loan eligibility criterion has evolved and is no longer a secured loan with collateral.
Benefits of an Online Personal Loan:
1) Paperless & Hassle-Free Documentation:
Submitting physical copies of documents by visiting the lending institution is no longer required. Instead, you can provide all the required documents digitally by uploading photos of the documents, which you can easily take with the smartphones available now. Even the hassle of going to a photo studio is no longer needed. Just click a selfie photo of yourself with the same smartphone and upload it, all thanks to the personal loans online application process.
2) Quick Approval and Disbursal:
The complete process of approving and disbursing the loan to your account is quick and happens online. So you don’t need to keep waiting for the funds after it is approved.
3) No Security Required:
This type of online personal loan does not require any collateral or security. All you need is a good credit score and payment history with the credit bureaus.
4) Competitive Interest Rates:
With so many instant cash loans available in the online market, getting a personal loan with a low-interest rate is necessary.
5) Pay Off Your Credit Card Balance:
Online personal loans have much lower interest rates when compared with a credit card balance. Therefore, make use of such loans to pay off the outstanding balance on your credit card and save money.
What Affects Personal Loan Interest Rates?
When you want a personal loan with low-interest rates, consider the following factors:
1) Monthly Salary:
When you have a healthy monthly salary, it reflects your financial stability. So lending institutions will take this factor to decide on a lower interest rate instant personal loan because you are not considered a risky borrower.
2) Additional Source of Income:
It would help you further if you have additional sources of income other than your salary. This income will add to your total income giving the lender confidence in your repayment capacity and providing you with lower interest rates.
3) Credit History:
This factor is a major one that banks and financial institutions consider to determine the interest rate, loan amount, and EMI tenure. Therefore, the higher your credit rating score, the higher your chances of getting better terms on the instant loan online approval.
4) Existing Debt:
Before deciding on the interest rate to offer, lenders will check if you already have any existing loans you are paying. If you have current debt, your capacity to repay a loan reduces, affecting the interest lending institutions will charge.
5) Your Current Age:
Many lenders will look into your age to determine the interest rate they will charge, which could be higher if you are nearing retirement age.
Before you apply for a personal loan with Navi, consider the following factors to get the lowest interest rate offers:
- You should ensure a credit score of 750 and above to get lower interest offers from Navi.
- If you have existing ongoing loans, please make their EMI payments on time and regularly so that the credit history does not reflect a negative impact.
- You should also ensure that you are working for a longer duration in an organization, as this will show that you are a stable person and will help Navi to offer lower interest rates.
- If you apply for an instant personal loan online with Navi, please disclose if you have any additional income sources, like rental income. This disclosure will strengthen your financial position and help Navi provide you with the lowest interest offer.
- Another factor that will help Navi to give you lower interest rates on personal loans is if you have been associated with them for a significant time. It means you are an existing customer who has built a repayment history with the company and can be trusted.
- Navi provides 100% paperless loan application processing, making applying easier.
- It provides the customers with the flexibility to choose the loan repayment tenure between 3 to 72 months during the personal loan online apply process.
- You don’t have to provide collateral to apply for a personal loan.
- If required, you can apply up to INR 20 lakhs loan amount.
- The interest rate you get is in the range of 9.99% to 45%, depending on your eligibility criteria.
- The disbursal of the loan is almost instantaneous once it gets approved.
- You require providing minimum documents like a PAN card, Aadhar card, and a selfie only as your KYC details.
- Navi does not have any additional or hidden charges for a personal loan.
- Even if you want to close the loan early, you will not have to pay any foreclosure charges.
Among so many money lending institutions to choose from, it is always crucial that you choose one that provides the lowest interest rates and the best personal loan eligibility criteria. Selecting a low-interest lending institute to take a personal loan helps you to save money in the long run. You usually take a personal loan when you are short of cash, so you should try and save wherever possible. Ensure that the loan terms are conducive for you and allow you financial flexibility. Moreover, take a loan only if you really need it and also ensure to take it from one of the best personal loan lenders like Navi.