A loan, as you know, is a particular amount of money that is offered by banks and other lending institutions and is paid back with some interest. The interest rate and loan amount are however variable and decided at the time of loan application by keeping in mind the repayment capacity of the borrower. There are both secured loans as well as unsecured loans depending on the kind of loan you have applied for.
Online loans are also like offline loans as the loan has nothing to do with the medium of application. However, online loan procedure is for sure more convenient as the applicant is free to apply for loan it anywhere anytime and there is, of course, no additional charges involved. Having said that, let us talk about the main benefits of applying for a loan online. So, here are some key advantages that would enlighten you about the online process so that you will also follow it.
Benefits of online loans-
Flexible options– When you are on the internet, you are free to check out as many options as you want, unlike the offline procedure where the lender starts troubling from the moment he has got the idea that you need money! By flexible options, what I mean is that suppose you have got one loan offer but your heart is not allowing you to take a step forward and apply for it. In such situations, do not hurry and take a look at other options that are easily available online.
Easy comparisons– The internet is full of options, you get the opportunity to compare the deals. Now, how can you do it? Well, you must have heard about the loan EMI calculator that is used to calculate the monthly installments of the loan. This tool takes into account the basic details of your loan like the loan amount, interest rate, and tenure. So, when you find that the particular offer is out of your budget. You can go for other options very easily.
Time-saving– The online process is time-saving, unlike the offline one where you have to go to the bank for each and every information. Since everything is digitizing now, there is each and every information available on the internet. So, you can apply whenever you have time.
What are the loan options available online?
Just because you are applying online, that does not mean you have limited options. Rather, you get more options for each kind of loan be it a home loan, a personal loan, car loans, business loans, etc.
Where to apply for home loans online?
There are n number of home loan options available online. However, here is the list of top 10 banks in India that offer home loans and their annual rate of interest:
- State Bank of India- 8.70% p.a. onwards
- ICICI Bank- 8.65% p.a. onwards
- Axis Bank- 8.65% p.a. onwards
- HDFC Bank- 8.65% p.a. onwards
- Bank of Baroda- 8.35% p.a.
- Bank of India- 8.65 p.a. onwards
- LIC HFL- 8.50% p.a. onwards
- Canara Bank- 8.65% p.a. onwards
- Andhra Bank- 8.90% p.a. onwards
- Bank of Maharashtra- 8.95% p.a. onwards
Now, it is also important to note that home loans are secured loans for which you have to submit security to the bank. Having said that, the interest rate and loan amount are offered on the basis of the factors like the age, property value, monthly income, monthly expenses, the category of the employer, credit history, relationship with the lender, and any other loan. On the basis of these factors, the borrower will get the loan. Also, the eligibility criterion is subject to change from lender to lender and from one applicant to another.
Where to apply for personal loans online-
Personal loans are one of the most demanding loans due to the reason that the borrower is free to use the money for whichever purpose he/she want. Since there are no pre-decided conditions from the lender’s side on the usage of the money, it makes it easier for the borrower to use the money as per their wish (for legal purposes only). Also, there are multiple lenders that accept online personal loan applications. So, you can apply for a personal loan wherever you find the best deal. Presently, the lowest personal loan interest rate is 11.29% p.a.
Thus, we hope you have understood the benefits of online loans and that the options that you have. So, apply now for the loan that suits your purpose.