With the pandemic situation, the country’s economy experienced a slowdown. A lot of people had to face salary cuts or delays, and some were even left job loss, the rise in demand for consumer lending products seems quite apparent. In a recent report, there has been a spike in the outstanding balance on credit cards, indicating that people are borrowing funds through credit cards and personal loans to meet their everyday expenses.
Effects of Economic Slowdown
- The India Retail Credit Trends report states that consumer credit increased in Q3 of CY 2019 fuelled by a spike in demand for categories such as personal loans and credit cards.
- Overall balances across all loan products have increased by 13% compared to 23.2% the last year.
- Demand for car loans, home loans and loans against property is relatively low between July and September 2019, while demand for consumer lending products increased.
- Credit card outstanding balances and the number of loan accounts increased by 40.7% compared to 29.8% during the same time last year, pushing the total balances to ₹1,090 billion and the number of active credit cards to 44.5 million.
- Growth of 133.9% for a new account of personal loans in Q3 2019 as consumer demand for the credit product continued to grow.
Applying for Personal loan
As many Individuals seek credit to manage their livelihood, that has been hampered by the pandemic. The ideal option is to get a loan and put it to fair use. With the help of a personal loan, you can get instant funds for all kinds of financial requirements. Before applying for a personal loan, you need to check whether you fulfil the essential eligibility criteria to avoid loan rejection. You can also apply for a personal loan using a personal loan app.
Eligibility Criteria for Personal Loan
Given below are the eligibility criteria that need to be fulfilled to qualify for an Aadhar personal loan.
- To be eligible for a personal loan, you must be an Indian resident.
- Applicants must be between the ages of 23 and 57 years.
- Individuals working with a public/ private company or an MNC are eligible.
- The applicant’s salary requirements will be based on the city of residence.
The following are a list of documents required for Personal Loan:
- Passport-sized photographs of the applicant
- Submit all the required KYC documents such as Aadhaar card, PAN card, Driving license, Voter’s ID
- Bank statements of the previous 3 months
- Previous 2 months’ salary slips
How to Apply for Personal Loan?
If you’re planning on getting a loan with your existing lender whether it is a bank or NBFCs, you are not required to go through the application process all over again. You need to review a pre-filled form with all your details along with the loan amount, saving a lot of time rather than filling in a lengthy application form. Suppose you are opting for the different lending institution you need to follow the specific procedure of personal loan application. They are as follows:
Step 1: Enter your personal, financial, and employment details on the loan application form
Step 2: Select the loan amount you require and the loan tenor, to get instant online approval.
Step 3: Submit the set documents required for verification process
Step 4: Once your loan is approved, the loan funds will be disbursed in your bank account within 24 hours.
One of the benefits of availing an instant personal loan is that you have the liberty to choose the duration of your loan based on your repayment capacity. A loan with longer tenure means lower EMI, which can be quickly repaid. You can take the help of a personal loan calculator to get an estimate of the personal loan amount that you have to pay every month.
How to Track Personal Loan?
All lending institutions offer internet banking services; they have their website and mobile applications where you can log in to your account to track personal loan application status. You also have the option to review the loan status by calling the customer care number of the respective banks or NBFCs for any financial queries, including personal loan. Also, you can directly go to the branch you apply and inquire about the status of your loan application.
Now that you are aware of the procedure to apply for a Personal Loan, you can apply for it with a trusted source for immediate financial requirements. The loan amount can be used for almost all kinds of financial need; the lenders generally don’t have any restrictions on the end usage of the loan amount. Make sure that you compare the offers from different lenders and choose the option that works best for you.