Everyone needs funds and extra cash to fulfil their requirements. The reasons are diverse, ranging from family vacations, occasions, and festivities to home improvement and renovation. Sometimes, we even have emergency monetary requirements. A personal loan could be your life-saver in all these cases.
Personal loans are an unsecured form of lending. It can help you build credit faster compared to other forms of lending. However, these are versatile and the standard way to address short-term financial needs and temporary financial difficulties.
What scenarios demand you to procure a personal loan?
Personal loans help you rid yourself of financial stress in multiple scenarios. But you should be aware of the repayment options and not end up being a defaulter. It is critical to stick to your repayment commitments, or else this could hurt your chances of obtaining another loan in the future.
The following scenarios would warrant a personal loan:
- A personal loan may be an ideal way to complete home projects that require a substantial amount of money, including renovations, repairs, new constructions, etc.
- A personal loan could be the go-to option to secure the finances for your small business if a bank or financial institution has turned down your business loan application.
- Catering to medical emergencies and providing the best medical care could be done by obtaining personal loans.
- Paying off your credit card debt using a personal loan is a wise move since they offer minimal interest rates.
- A personal loan could be an excellent solution to pay for your school, college, or higher education.
- Wedding expenses in India are quite extravagant. A personal loan could be the best bet to tackle such expenses.
Several other immediate monetary requirements could make a personal loan an obvious choice for you.
What are the things to know while applying for a personal loan from MoneyView?
Obtaining a personal loan may be frightening at first, but it is quite possible with careful planning. In India, several banks and NBFCs offer personal loans. Personal finance solutions like Money View offer personal loans without much hassle or documentation, and the entire amount is disbursed promptly.
Before you are ready to apply for a personal loan from Money View, you should have a clear idea of the following things.
Understand the credit score
A credit score is one of the benchmarks that help you secure a personal loan and set your interest rate for repayment.
A low credit score will cause difficulties in obtaining a personal loan. Thus, you should be aware of your credit score and adjust your loan expectations accordingly.
But what is a credit score?
A credit score refers to a three-digit figure that varies from 300 to 900, with 900 being the best possible score. It indicates the possibility of you receiving a personal loan from lending institutions and the probability of you repaying the loan amount. Credit bureaus such as Experian, TransUnion CIBIL, Equifax, and CRIF High Mark prepare the credit score.
According to the CIBIL website, the closer your credit score is to 900, the more likely the loan approval is. If it is more than 750, the score is excellent, and your loan approval will be seamless.
However, Money View implements an in-house credit rating model that considers multiple data points. It does not completely depend on a high CIBIL score, and hence your chances of obtaining an instant personal loan are quite high with Money View, even if your credit score is low.
The minimum CIBIL Score for Money View is 600.
Make the essential calculations
Before going forward with the application for a personal loan, you must do your groundwork. You need to make the loan repayment along with interests within the stipulated time frame.
There are specific factors you should keep in mind while evaluating your loan options.
- Interest rates
- Tenure of loan repayment
- Other expenses such as closing charges, etc.
In this regard, the Money View online personal loan EMI calculator will be of great help. Input the loan amount, tenure of repayment, and interest rate to get the precise calculations of monthly repayment amounts.
However, the tenure and rate of interest charged are dependent on the borrower’s credit score.
How can you apply for a personal loan online from Money View?
Now that you know the background procedures you need to emphasize, start the online personal loan application with Money View.
Step 1: Eligibility Criteria
Before Money View disburses the personal loan, it will thoroughly assess the creditworthiness of the borrower. Hence, you need to fill in certain information on the Money View website or the Money View application. These constitute the eligibility criteria for acquiring a personal loan.
- Your first and last name
- Income details
- Date of birth and age
- Your location and area code
- The reason for which you want to take the loan
- PAN (Personal Identification Number)
- Phone number
- Any additional information.
Once you’ve filled in the above details, Money View will evaluate your eligibility for obtaining the personal loan and inform you within a couple of minutes.
Step 2: Choose a Loan Program
Once you have input the details mentioned above, the Money View website will display the suitable loan amount that can be disbursed. It depends on your eligibility criteria and credit profile.
Choose the loan amount as well as the payback period that best suits your needs.
Step 3: Complete Know-Your-Customer (KYC) and Income Verification
The next step is to upload all relevant documents for KYC. These include-
- Identity proof
- Proof of address and
- Proof of income.
The next step involves taking a clear selfie and uploading photos of your PAN card.
One of the biggest upsides is that you don’t need to submit any physical copies of these documents. The entire process is online and is pretty smooth.
Step 4: Assemble your documents
After deciding the loan program from Money View and completing your KYC and income verification, you must submit relevant documents.
The entire documentation to verification approach takes place digitally in the Money View website or app.
Most personal loans require one or more of the following documents as evidence:
PAN Card is the most credible identity proof. However, if it is not available, you can provide any of the following identity proofs:
- Aadhaar Card
- Valid Driver’s License
- Valid Indian Passport
- Voter ID Card
Proof of address
After inputting your address in the Money View website or app, you need to furnish certain documents to prove that the input address is authentic. You can provide any of the following documents:
- Aadhaar Card
- Utility Bill – (Electricity Bill/Water Bill/Telephone Bill/Gas Bill) – All invoices must be current within the last 60 days and clearly state your address and name.
- Valid Driver License
- Valid Indian Passport
- Voter ID Card
Like other lending institutions, Money View also needs to verify your financial condition to ensure timely repayments of the loan from your end.
To demonstrate the current state of your finances, you may need to present some of the following documents:
- For Salaried Applicants –
Last three months bank statements of your salary account in PDF format showing salary credits.
- Self Employed Applicants –
Last three months bank statements in PDF format.
Step 5: Approval of the loan and EMI-Auto debit
Money View will grant your loan immediately after validating your documents.
You must now use a Net banking/Debit card to allow the EMI-auto debit. If your bank account auto-debit feature is active, monthly EMI payments can be made without any hassle.
Step 6: Disbursement of Loan
You will receive a loan agreement with specific details from Money View.
This includes your loan amount, interest, and tenure of repayment after the EMI-auto debit is enabled.
After examining the agreement and submitting your application, Money View will transfer the loan amount to your bank account within one business day.
When you get your loan, what should you do?
To be an individual with good creditworthiness, follow the steps below.
Make your payments on time
Making your loan payments on time is a good practice that ensures high creditworthiness. Not doing this will take a toll on your credit scores.
However, if there are unfortunate events and unforeseen circumstances that hinder your payments in the future, contact Money View immediately.
Many borrowers prefer to pay off their loans as quickly as possible to save money on interest over time. However, that might incur a prepayment penalty.
It is a fee that the lenders charge borrowers who try to pay off the entire or partial loan amount ahead of schedule. These fees are mentioned in the loan agreement, and you should carefully read them to save yourself the trouble of incurring a penalty.
The tips mentioned above will increase the likelihood of your loan approval process promptly and at a reduced interest rate. Money View is one of the best personal finance solutions that will have your back if and when you require a personal loan.