Know How To Get Instant Loans By Applying For A Personal Loan

Applying For A Personal Loan

According to the RBI report, the personal loan category has garnered a growth rate of 12.3% in February 2022, compared to the 9.6% growth in the previous year. The robust pick-up in demand for a personal loan is mainly due to the convenience it facilitates in the application and documentation processes. It lets individuals quickly meet their credit shortages without the burden of keeping any property as collateral. To leverage this emergency credit facility, they just need to meet the eligibility standards and apply for a personal loan.

How to apply for a personal loan

Individuals need to follow the step-by-step process mentioned below to obtain the credit facility:

Step 1: Visit the official website of the chosen lending institution

Step 2: Find the personal loan application form

Step 3: Fill in basic details and mobile number

Step 4: Enter the OTP sent to contact number for authentication

Step 5: Provide KYC and income details in the application form

Step 6: Mention loan amount

Step 7: Submit the filled-in application form

Upon completion of these steps, intending borrowers will successfully submit their credit requests. Lenders, at this stage, undergo an initial verification process and contact the applicants on their registered personal loan contact number. They inform their customers about the following procedures to get the credit facility.

After all the application procedures are complete, the lending institutions provide the loan agreement paper. Customers need to sign on the paper and then resubmit it to their lenders. Through this process, they accept the terms of the loan. Nevertheless, borrowers must know certain things before signing a personal loan agreement.

Eligibility criteria for the personal loan

Individuals must meet the eligibility criteria set by the lending institution to get approval on their loan requests. Here are the common eligibility parameters that they need to meet for this loan:

  • Their age needs to in between 21 and 67 years.
  • They need to have an income of at least 22,000.
  • They need to an Indian citizen.
  • Having a CIBIL score above 750 is also imperative.

In this regard, they need to know that the credit score helps lenders confirm that their applicants have a positive repayment record; hence, they are creditworthy. Resultantly, they get the credit facility without much hassle.

Nevertheless, some individuals may not have a CIBIL score above the required parameter of 750. They need to be aware of how to get a personal loan with a poor credit score.

Documents required to apply for the personal loan

Individuals can obtain a personal loan by providing these basic documents:

  • KYC documents (Voter ID card, PAN card, passport, Aadhaar card, etc.)
  • Employee ID card
  • Bank account statements

Besides knowing how to apply for a personal loan, individuals also must be aware of the things they must know while choosing a lender for the credit facility.

Things to consider while choosing a lender for a personal loan

Here are some aspects that individuals need to be mindful of while applying for a personal loan:

  • Required personal loan finance

Individuals should measure how much credit amount they actually require to meet their financial shortages. It can significantly help them refrain from over or inadequate borrowing.

  • Repayment period

Individuals must choose their repayment period carefully. Else, they can get an instalment amount that is much beyond their financial capacity. This is because the tenor is inversely proportionate with their instalment amount. When they choose a shorter tenor, their EMI amounts increase, and vice versa. Individuals need to know how they can find the right personal loan tenor that works for them.

  • Personal loan interest rateĀ 

The interest rate of the personal loan is one of the major aspects that influences the borrowing cost of a loan. To identify a cost-effective loan offer, individuals should compare different lending institutions according to their interest rate.

They can leverage the personal loan interest rate calculator for comparison. To understand the interest outgo of a loan offer, they only have to mention the borrowing rate, tenor and credit amount on the calculator.

  • Pre-approved offers

Some lending institutions also provide their customers with pre-approved offers on their financial products, including personal loan, business loan and credit cards. These are special credit offers, by accepting which individuals can significantly expedite their loan application process. They only have to mention their names and contact details to check their pre-approved offers.

In conclusion, individuals with financial shortages can easily apply for a personal loan online. Being an unsecured credit facility, it helps them obtain the required capital only by providing some basic documents.

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