Personal Loans are an excellent way of financing your urgent money requirements without straining your own savings and finances. Personal Loans are unsecured loans extended by a number of financial institutions in India for their customers. Personal Loans are extremely popular with borrowers in India as they do not need you to furnish any collateral and can be used for any purpose you deem fit. The tenure of Personal Loans ranges from 12 months to 60 months.
With the rising financial uncertainty becoming a part of modern lives, Personal Loans offer a reliable source of funding to handle various financial liabilities in an effective manner. But in order to complete the process for application of a Personal Loan, you need certain financial and KYC documents in order to help the lender assess your loan eligibility.
Due to rapid integration of technology in the finance industry, many lenders have started to disburse Personal Loans online. You just need to fill the simple application form and upload the necessary Personal Loan documents online. If you meet their eligibility criteria, your loan application would be sanctioned, and the amount would be deposited to your account directly.
Use of Technology by Financial Institutions
Due to increase in the use of technology, while assessing loan applications, lenders are becoming less and less dependent on physical documents. They only need some necessary details about you, and they are able to pull out your Credit History (through credit bureaus like CIBIL, Experian, and so on). This gives them complete information about your finances and helps them significantly while assessing your application for a Personal Loan. In some time, it won’t be a surprise if the lenders would stop asking for any documents from you and would use the latest technology to determine your eligibility for a Personal Loan. But for now, it is essential that you have all financial and KYC documents ready with you when you are Applying for a Personal Loan.
Can I Get a Personal Loan Without Documents?
There is one question that bothers some of us when we decide to borrow some money as a Personal Loan, and that questionis, “Can I get a Personal Loan without documents.” The answer might sound contradictory to what has been described above, but it is certainly possible to get a Personal Loan without documents. Following are some of the options that you can use if you want to get a Personal Loan without documents:
- Loan from existing financial institution:
Financial institutions today highly value those customers who maintain a long-term relationship with them and have a good track record in terms of account balance and loan repayments. If you are running an account with a bank for many years or have availed a loan from an NBFC (non-banking financial corporation) and have been making payments on time, the chances are that the officials must know you very well and you will have a certain rapport with them. So, when you require a Personal Loan, they will look at your application favorably and approve your application without any documents needed. They do not request any documents as they already have your details updated with them and are satisfied with the performance of your account. So, make it a point to maintain a sound financial discipline with respect to the respective financial institution from which you might seek the facility of a Personal Loan.
- Temporary overdraft from banks:
If you have a savings account with a bank, private or public sector, and are maintaining a healthy balance in it without any instances of cheque bounces, you can avail a temporary overdraft facility from your banker. This is a form of a Personal Loan which is extended by the bankers only to those customers, whose account performance is according to their satisfaction. You need not provide any documents for availing this facility, and the amount is credited to your account within a few hours itself.
- Personal Loan against Credit Cards:
If you need a Personal Loan without documents, then you can avail the same against your Credit Card. Personal Loan against Credit Cards is offered by most card issuers based on your credit behavior. If your credit utilisation ratio is low and you make timely payments against your dues, your credit card issuer will provide you with an instant Personal Loan without requiring any documents from your side. The amount approved depends on your credit score and credit history.
- Personal Loan against fixed deposits:
You can avail the facility of a Personal Loan from your banker against the fixed deposit accounts that you are maintaining with them. This facility is offered in the form of an overdraft facility and at a nominal rate of interest. You need to pay interest only on the amount utilised, which is calculated on a daily basis.
A Personal Loan without documents is dreams come true for a lot of borrowers. At the rapid speed with which Personal Loan approvals and disbursals are being done online, it is only a matter of time by when the whole loan application process will become documentation free.