A personal loan is the best idea when it comes to seeking solution to a financial crisis. This loan is unsecured and you do not have to provide collateral to financial institution for borrowing funds. You can borrow anywhere between Rs. 1 lakh and Rs. 20 lakhs under this scheme. The benefit of such collateral-free loan is it can be used to fund any expense, be it for home repair, medical treatment, education, debt consolidation, travel, emergency activity, wedding and more.
This loan is usually provided to salaried individuals, but some banks/NBFCs can offer it to self-employed professionals as well. Documents required for the loan are far less than secured loans such as loan against property, home loan, education loan etc. Being a multi-purpose loan, it is more preferred than any other form of borrowing.
Who is an Online Aggregator in FinTech Space?
Today, you can even apply for personal loans online and avoid visiting a bank/NBFC branch to avail funds. If you wish to apply for the loan on the internet, then consider an online aggregator than individual bank websites. An online aggregator in financial sector is said to be an intermediary organization with a website that offers a one-stop shop for financial products from the leading providers of the same.
An aggregator may or may not have own products. If you check out a website of an aggregator, you will be able to find almost all the major providers (banks and NBFCs) of personal loan in the city and country. They even offer financial tools and guides that aid you in taking an informed decision.
Let us first understand the benefits of a personal loan.
- Low Interest Rate: Most of you use credit cards. In times of emergency, thus, it is natural for you to choose a credit card loan. However, the interest rate on such loans is much higher than that charged for personal loans. Thus, a personal loan is an optimum choice over credit card loans. Interest loan for personal loan can be as low as 11%.
- Minimal Documentation: Personal loan involves hassle-free paperwork. You have to submit basic KYC documents, income proof, bank statement, and recent passport-sized pictures.
- Flexible Tenure: The tenure of a personal loan is up to 5 years. Being a semi-short tenure loan, it brings the benefit of you paying a low interest amount compared to loans of longer tenure. You may foreclose the loan, but do check for prepayment charges, if any.
- Quick Disbursal: The loan can be disbursed within 24 to 72 hours if you have a good credit score and meet the eligibility criteria. Most of the banks even offer a pre-approved facility, which helps the funds reach sooner to your bank account.
- Fixed Interest Rate: Unlike loans that carry a floating rate of interest, personal loans come with a fixed interest rate. You will have to thus pay fixed EMIs through the loan tenure without having to worry about any changes in the rate later.
Below given are some of the benefits of taking personal loans from online aggregators.
- Instant e-approval: You can apply for the online personal loan at any time of the day on the website of the aggregator. No restriction of hours when you can access the application section. You will only need a device with internet connection to be able to check the website.
However, instant e-approval is assured only during the working hours of the company and the original loan provider. This is still better than having to visit the bank for loan application and waiting endlessly to know the loan application status.
- Financial Calculators: On the website of personal loan aggregator, you will find free-to-use tools such as EMI calculators and eligibility calculators. These provide result in real-time and are dynamic. These tools are handy to draw an estimate of how much fund you could be eligible for and the total payout on the loan based on information such as loan amount, tenure, interest rate, etc.
- Privacy and Ideal Customer Service: Details you share with aggregator are never revealed to unconcerned third-party. Your privacy is assured and transactions if any are secured. You usually do not have to pay any fee for the service provided by the website. You will also receive complete customer support from relevant team. They will communicate with you the best loan offer as per your financial and personal profile and follow you up for the loan process till the time of disbursal and thereafter.
- Detailed Information of Schemes: The website will have complete information about personal loan providers and the loan schemes they offer. Thus, you can compare the banks and NBFCs and their personal loans to choose the one that suits your needs. You can be informed of details like the loan amount, eligibility criteria, tenure, interest rate, other charges, fees, and terms/conditions.
- Speedy Disbursal: Aggregators have integrated platform where they connect to partner banks and NBFCs quicker than that on traditional offline method. Thus, it allows them to process the loan application and fund request on real-time basis. Thus, you receive funds sooner than you would if you apply offline.
With online aggregators, knowing about personal loan schemes and applying for those becomes an easy task. The procedure is also transparent and painless. They may even have cashback offers, discounts, and other attractions. Another advantage is that you get personalized services and quick response. Thus, if you are looking for a personal loan, then do consider an aggregator online.