You came to the right place. In this article, we will see how to apply and secure a personal loan.
What to Do Before Applying for a Personal Loan
1. Check Your Credit Score
A higher credit score will make it easy for you to get a loan. If your credit score isn’t good enough, then take steps to increase it before applying for a loan.
You can get a loan with a low credit score but at a higher interest rate.
2. Consider Different Lender Options Online
People usually go to banks to take a loan. Since the banks would be aware of your financial credibility, they would be flexible in offering you a loan.
However, you can also consider other lenders and any Non-Banking Financial Company (NBFC). Verify their credibility before approaching them. Check for loan costs, interest rates, terms and tenure.
3. Compare the Interest Rates
Shop around to check what interest rates different lenders are offering. Compare the loan amounts and the required monthly payments too. Some financial institutions may offer you an unsecured personal loan while a local bank may offer better interest rates.
Apart from comparing personal loan interest rates, check what other charges you may have to bear. These may include processing fees, payment penalties, and foreclosure charges.
4. Check your Eligibility
Banks or other lenders require you to be salaried or self-employed to be eligible for a loan. You should be in a particular age bracket as well.
5. Check the Documentation Required
Check all the documents you require to apply for the loan. These may include your recent payslips, letter of employment, current address, photographs, etc.
6. Choose the Appropriate Lender
Choose a lender who gives you a flexible tenure and different EMI options to pay off the loan. Use an EMI and personal loan interest calculator online to estimate your monthly cash outflow.
7. Read the T&C Document Carefully
Make sure you understand all the terms and conditions before you apply and secure the loan. If you have any queries, ask the lender immediately.
Once you complete the above-mentioned steps, you can apply for the loan – either online or through the financial institution’s app.
How to Apply for a Personal loan
8. Online Application
- Fill up the Form
Fill up the online form and upload all the required documents. In this step, you need to mention:
- Desired loan amount
- Contact details
- Email ID
- Get Instant E-approval
This is the stage when all the documents will be verified. The financial institute will check whether you are eligible for the loan or not. Once all the documents are verified, you will get an instant e-approval.
- Loan Disbursal
After the verification, the loan disbursal process will be initiated. You will have to e-sign the loan agreement document. By doing this, you agree to abide by the terms and conditions of the lender.
Once you e-sign the document, disbursal process will be started. Provide your bank account details where the loan amount will be disbursed.
9. Requests through E-mail or Phone Banking
Leave a request for a personal loan with the bank either through the customer service centre or an e-mail. The financial institute will review your eligibility and contact you to take the process ahead.
10. Offline Request at the Bank
If you don’t want to go the online route, go to the nearest bank of your choice. Talk to a relationship manager and request a loan.
Getting a personal loan has become a very simple process. You can use instant personal loan apps and have the loan amount in your bank account in no time.