Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
09 FEBRUARY, 2022
Earlier, it would not be possible for a borrower to get any kind of loan without first visiting the bank. They would have to speak with a representative, submit all the required documents, and then wait for them to get reviewed. If everything was in order, the bank would then approve the loan application. This entire process would take time, which could be a problem if you are in urgent need of funds. However, this is not something that needs to be worried about today. Thanks to the digital world that we now live in, you can easily apply for a personal loan online.
Wondering how? Let’s find out!
1. The documentation can be completed digitally
The documentation process was considered to be a bit troublesome earlier as it could take a while to get done. There could be a lot of back and forth between the borrower and the bank, which would unnecessarily prolong the loan process. However, today you can submit all your documents for a personal loan online. Documents for proof of residency (passport, utility bills, leave and license agreement), proof of identity (Aadhaar card, PAN card, passport, driving license, voter’s ID), bank statements, salary slips, etc. can all be digitally uploaded.
2. Personal loan EMI calculators help in choosing an ideal loan plan
Earlier, you would first need to speak to a bank representative to learn about a particular loan plan. Then, the loan plan would need to be evaluated to check its affordability. Making a mistake while manually calculating the loan EMIs could lead to repayment problems. However, this is not something you have to worry about anymore. Today, lenders offer personal loan EMI calculators on their websites. These are online tools that display the loan personal loan EMI values, based on which you can decide whether the loan plan can be afforded. You just need to input details such as the loan amount, its interest rate, and repayment tenure in the personal loan calculator.
3. You can get an instant loan approval
If you are in urgent need of funds, it wouldn’t help if the lender would take a lot of time in approving your loan application. With Kotak, delayed loan approvals are not something you have to worry about. If your application and documents are all in order, the disbursal would only take 3 seconds. This works out very well for borrowers who immediately require financial assistance.
4. The eligibility terms for a personal loan are quite basic!
Some borrowers have struggled with getting loan approvals because of stringent eligibility criteria. At Kotak, we have set basic eligibility terms for those in need of personal loans to ensure that they do not have to worry about loan approvals. If you are between the ages of 21-60 years, a salaried individual with a minimum income of Rs 20,000 if residing in metro cities and Rs 15,000, if residing in other cities and a CIBIL score (preferably) above 750, you can clear the eligibility criteria for a personal loan.
Before applying for a personal loan, keep in mind that the personal loan interest rate can be influenced by your credit score, monthly income, and employment record.
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