Personal loans are unsecured loans that can help you meet your expenses. Here it means that unsecured lenders provide personal loans without asking for collateral. In this modern age, with the emergence of Fintech, it has become easy for the public to get instant loans online without submitting any documents. However, if you want to get an instant undocumented loan, you will need to meet the individual credit requirements set by the lender. Now, people don’t have to wait for meetings with bank executives or intermediaries and go through cumbersome paperwork and lengthy personal loan application process to get a personal loan. This guide will tell you how to get a quick undocumented loan.
How to Secure a Personal Loan Without Supporting Documents?
Here are the important things that you need to do to get an instant personal loan online without documents:
1. Refer to the Existing Bank:
Visiting a financial institution that you already have a relationship with is your best bet for quick cash loans. It takes time to build trust with everyone, especially with banks. And trust is the most important factor that affects your chances of getting a quick personal loan from a lender.
Relationships of trust with banks are built through how you maintain your account balance, make deposits at the financial institution and use its services. Long-term relationships with banks allow them to understand your financial habits. If your financial habits are positive and you meet their eligibility criteria, your instant loan application gets approved by banks quickly. Approved funds are also disbursed and deposited into your savings account within hours.
2. Make Sure your CIBIL Score is Good:
A good CIBIL score means you have good credit repayment behavior. CIBIL score helps financial institutions to know if they can repay the instant online loan on time. Some of the methods you can use to get a good credit rating are to pay off your past debts and other outstanding debts on time.
Also, do not pay your credit card or EMI dues as this may affect the loan approval process. Generally, banks and other financial institutions prefer to give personal loans to people with credit scores above 600. Some banks have set a CIBIL score limit of 750 or more.
3. Check your Debt Ratio:
Another factor that can affect the approval of your online undocumented loan application is the debt-to-income ratio. If your current debt is more than your monthly income, then you are not eligible for the loan. According to banks, a person has to ensure that his debt ratio is 50 percent or less. This specific debt-to-income ratio will ensure that the borrower has the financial ability to repay the loan. So, it will be easy for you to get an undocumented loan instantly.
4. Choose from the First Available Approvals:
If you need cash fast but can’t wait to send the documents, pre-approved offers are always the best option. Pre-approvals are often offered to consumers who meet the requirements set by the lender. Your current financial situation and credit score are used to determine eligibility for these offers.
So, availing of these pre-approved offers will save you from starting the personal loan application approach from scratch. In addition, no additional documents are required. If you are pre-approved, it is also possible to get approved for a loan at a reasonable interest rate.
Eligibility Criteria for Quick Personal Loan
You can apply for an instant personal loan online without supporting documents if you meet the following eligibility criteria:
- Applicant must have a nationality.
- The minimum age limit for applicants is 21 years and the maximum age limit is 67 years.
- Candidate should have a CIBIL score of 750 or above.
- The applicant’s monthly income should be Rs 22,000, which may vary depending on the city of residence.
- It should be noted that these five main eligibility criteria vary from bank to bank. So, you should remember to check the eligibility criteria of the lender you are applying for a personal loan.
Step 1: Visit the official website of the selected financial institution.
Step 2: Next, open the personal loan application web page and click on the “Apply” button to open the online application form.
Step 3: When you open the loan application form, you will be asked to enter your 10-digit mobile phone number to verify the unique password sent to your phone.
Step 4: Once the OTP is verified, you will immediately be asked to fill out the consumer loan application form. You have to complete the basic information like your full name, date of birth, PIN and PAN.
Step 5: Enter the desired personal loan amount and select the repayment period and EMI. Some banks offer a wide range of repayment terms and EMIs and you should choose the option that suits you best.
Step 6: You need to complete the KYC procedure by providing an electronic copy of your ID and proof of address documents.
Step 7: As the last step, apply for an instant personal loan.
On receipt of the loan application form, the lender will verify your identity and address against previous records. It will also check whether you meet the eligibility criteria. Once you complete all the formalities and ensure that you are in good financial standing or ability to repay the loan, your online loan application will be approved. The approved loan amount is disbursed within 24-48 hours and credited to your savings accounts.
The advent of technology and the digitization of the banking industry have completely changed the way financial transactions are conducted between lenders and borrowers. For example, if you qualify for a personal loan, you can now apply for an instant loan online without any paperwork. As a result, it has become much easier not only for lenders to issue loans online but also for lenders to carry out the verification process. Also, with online loan application and approval, quick access to consumer loans has become possible.