Guidelines in Applying for a Personal Loan Online

Loans are a great way to turn your dreams and aspirations into reality. And, personal loans are one of the most flexible loan products available out there. This is because they are non-collateralized and hence can be put to any use that you, the borrower, may deem fit. This could be financing your European holiday, tuition fees for your child, home renovation, getting the latest gadget etc.

And, with the Internet making things so much faster, applying for a personal loan need not be the long, laborious process it used to be earlier. Here, we will take a look at how you can go about applying for a personal loan online:

To apply for a personal loan from a particular bank visit the bank’s website. Usually a bank’s website will have different products / services grouped under broad categories. For instance, auto loans, car loans, home loans, personal loans, overdraft etc may be grouped under a broad “Loans” heading. These categories can be easily accessed from a menu on the bank’s website. Locate the category to which the product that you wish to apply for is listed and navigate (click on) to it.

Check out the product pages

Clicking on the product category page will take you to a page / section devoted to the various products available under that category. Go and check out the specific product that you are looking for.

Use Online Calculators

Many banks provide users loan calculators on their websites with which to better understand how personal loans work. You can enter the loan amount you are looking for and the tenor of the loan and the Calculator will help you determine the probable monthly repayment installment amount.

Some Calculators will require you enter your income details and these Calculators will also help you understand your loan amount eligibility. However, remember that such loan calculators will not take into account any fees that may be deducted from your loan proceeds like processing and disbursement fees, documentary stamp tax, insurance etc.

Third-party websites

There are a number of third-party service providers who will help you compare personal loan products from different banks; you can even order your search results through filtering criteria like interest rate, monthly installment amount etc.

A few examples

▪ Citibank provides you with a short form where you will be requested to leave a few personal/contact details and you will be contacted within 3 hours by someone from the bank who will help you with your application.

▪ Maybank provides you with a more detailed form and also requires you to scan and submit a required set of documents.

▪ BDO Unibank provides you with an application form online that you will need to download, fill and submit to a branch.

▪ You can even visit a third-party service provider like imoney.ph. You can use their comparison table, find the loan that best suits you and click “Apply”. You will then receive a call from one of their persona loan consultants who will submit your application to the bank. The bank will then confirm your application and disburse funds within 5/7 business days.

How to Apply for a Loan Online

With nearly 40 million Internet users and the fastest growing Internet population in the world in the last 5 years, Internet usage has seen significant growth here in the Philippines. And, commercial players, like banks have not been slow to adapt to the changed environment; they have extended their product and service reach to the Internet. One such example that we are going to examine today is online loan application and how you can go about applying for a loan online:

Visit the Bank’s Website

Go to the bank’s website; the site would have a page or a section, devoted completely to loans. You can easily find this link in the “home” or the “top” menu of the bank’s website. Once you’ve located the link to the loans section, click and navigate to it.

Check out the Loans Section / Pages

The Loans section of a bank’s website would most probably be categorized according to loan type. So, you will find pages devoted to personal loans, home loans, auto loans etc. You can move on to the type of loan that you require. The individual loan product pages will provide you will a detailed listing of the features and benefits associated with the loan, the terms and conditions related to its usage and the eligibility requirements for that loan.

Make Use of Online Calculators

Another set of great tools provided by banks on their websites are the loan calculators. A loan, especially one like a home loan, involves a considerable commitment on your part. So, it is essential that you understand exactly what you are commiting to and these calculators will help you do so.

Open the calculator, enter your current  income details and your loan requirements including the amount that you are looking for, the tenor of your loan, fixed or floating rate of interest etc; the loan calculators will help you understand the quatum of loan that you are eligible for and will help you determine the monthly repayments that you can afford given your financial commitments.

Apply Online

Finally its time for you to Apply for a Loan Online! You will be required to enter some personal information including your gender, date of birth, address etc. This may be followed by your income details and the details of the loan. You may also be required to submit your documents online. So, keep the latest copies of your IDs and other documents ready.

Post your application, your bank will process your application and get back to you from within a few hours to a couple of days. Also, while applying online take your time, ensure that you do not miss out on any details and do not fudge/misrepresent any details. You will most likely get caught out and not only will your loan application be rejected, your standing with that particular bank may be damaged. If you have any doubts regarding filling out a particular field, check with the banking staff who will only be glad to help you.

Online Loan Management

Online banking also makes it easy for you to manage and administer various aspects of your loan. You can generate statements, make repayments, set up Standing Instructions (SI) for paying your loan installments and more – all online.

Another big advantage of going online for a loan is that since all banks have posted details about their product offerings on their websites, it makes it easy for you to shop around and look at similar loan products from different banks. You can also use loan comparison sites to decide which is the best loan available for your requirements and then you can go for it – online, of course!