“Simplicity is the Ultimate Sophistication” – Leonardo Da Vinci

There has been a massive surge in the Indian personal loan market in recent times. These unsecured loans are most sought after, especially during the festival season when people are in the mood for celebration and indulgence. The total volume of personal loans has multiplied 4X over the past three years (FY19-22) to touch nearly Rs.1.50 Lakh Crore.

Rising aspirations, higher disposable incomes and the digital revolution have all contributed to this steep rise. You do not have to compromise on your desires anymore. You no longer need to physically visit a bank to apply for a loan and get it approved. 

You can get instant personal loan in the comfort of your home and at the click of a button. If you need money urgently, a personal loan app is a lifesaver. There are absolutely no hassles, and everything happens very smoothly. Money reaches your account in a jiffy!

Benefits of a Personal Loan

1) No need to provide any guarantee or collateral security

2) Borrow as per your requirements for the moment

3) Fast loan processing & approvals through online loan apps

4) Minimal documentation when you apply online

5) Complete details available at your fingertips

How to Apply for a Personal Loan?

By going online, you have absolutely no paperwork to be done. You need not wait endlessly for the approval process. You can apply for a personal loan just by downloading an app on your phone. The Navi App is extremely user-friendly with a seamless interface and provides instant cash loans to people.

The advantage of an instant cash loan is the minimal time gap between your loan application and the subsequent approval & credit. You need a few documents like Aadhaar & PAN cards to get started. If you meet the eligibility criteria, the amount is credited to your bank account in a few hours. It is extremely simple, safe & secure.

Key Features of Navi App

  • Over 10 million downloads with loans sanctioned over Rs.9,000 Cr
  • The loan procedure is entirely paperless with very little documentation
  • Immediate loan approval and fast disbursals
  • Personal loans up to Rs.20 Lakh starting at just 9.90% p.a.
  • Flexible EMI options with loan tenor up to 6 years
  • No processing fees are charged for loans of Rs.50,000 and above
  • 24×7 customer support to resolve all your queries

Using Navi App for Personal Loans

You can apply for instant personal loan by following the simple procedure given below:

Step 1: Download the Navi app – Android users from the Google Play store & iPhone users from the App store. Complete the registration using your mobile number

Step 2: Fill up your personal details related to name, date of birth, PAN Card number, employment type and monthly salary

Step 3: Select the desired loan amount and duration. The app’s algorithm checks the credit score in the background to assess your loan eligibility

Step 4: Complete the video KYC verification process by using your PAN card, Aadhaar card and a Selfie

Step 5: Enter your bank account details to receive the loan amount directly to your account. 

Step 6: You need to provide an auto-debit mandate for the monthly EMIs to get deducted automatically on the specified date every month

Step 7: Once verification is done, the amount is credited to your account. After charging processing fees and the GST applicable on personal loans charges, the net amount is transferred.

Important Pointers

1) Instant cash loans come to your rescue when you need money immediately. Use the facility judiciously.

2) Personal loans are unsecured and granted based on your creditworthiness. So it’s essential to maintain a good credit score (CIBIL score of 700+) to avail of attractive loan offers.

3) If your credit score is low, you may be charged a higher interest rate. If it’s very low, the application gets rejected.

4) PAN card & Aadhaar card details are required. Keep them handy

5) Navi grants you a loan offer after assessing your credit score & employment status. You can change it per your needs by moving the slider on the app.

6) You can avail of higher personal loans by providing additional details like bank statements. They are sanctioned subject to meeting the eligibility criteria

7) The maximum loan amount is determined based on your credit rating, employment type & income level. To borrow more, you will have to take a top-up loan after demonstrating a consistent repayment track record.

8) Please ensure that EMIs are paid regularly on time. Maintain sufficient balance in your account. A default may lead to stiff penalty charges and adversely affect your credit rating.

9) Any excess payment made shall be appropriated towards the principal amount outstanding.

10) The shorter the loan term, the lesser the interest amount you pay to the lender as the loan gets repaid faster

11) You can opt to prepay and close the loan anytime after paying at least one EMI. Check the terms & conditions.

12) Ensure that you provide the correct information on the app. Mistakes can lead to the rejection of loan applications.

Charging GST on Personal Loans

The question ‘what is the personal loan GST rate’ is a little misleading because GST is not charged on the interest rate. So GST does not increase the rate of interest charged on your personal loan. GST applies to the processing fees charged by the lender on the personal loan.

E.g. You have taken a personal loan of Rs.1 Lakh and the processing fee charged is 3%. The amount works out to Rs.3,000. Now GST is charged at 18% rate on Rs.3,000 i.e. 3000*18% = Rs.540 and the total amount charged is Rs.3,540

Conclusion

Life is full of surprises. Not everybody is comfortable borrowing money from family & friends. Instant personal loans not only fulfil your desires but also come to your rescue in a crisis when you need money desperately. 

Thanks to the digital revolution, you can easily apply for an instant loan just by downloading a mobile phone app. That is simplicity at its best!