You have gained admission into a top foreign university. This is a dream come true for you. But the high tuition fees are a big problem. Or, you may be planning your dream wedding and are running short on cash. In both cases, you are stressed out and wondering what to do. That is when you realize it. ‘I need a loan,’ you say.

What is a Personal Loan?

A Personal Loan is given by banks or lending institutions to finance your immediate financial requirements. The advantage of this type of loan is that you do not need to provide any security or collateral.

When can I use a Personal Loan?

You can Use the Personal Loan to Fund any Personal Requirement.

  • A dream vacation
  • Higher studies
  • Medical expenses
  • Wedding expenses
  • Renovating your home

I need a Personal Loan. What is the application Process like?

Suppose you need a Personal Loan urgently, you should know the steps involved in getting one.

  • Do your research. Choose a lender that fits your requirements where loan repayment is concerned. Look at especially the equated monthly instalments (EMIs), interest rates, and prepayment charges.
  • You can apply for a Personal Loan in two ways.
    • Walk into the bank or financial institution of your choice and meet with a representative. Fill up the application form.
    • In recent years, online loan applications have become popular. Apply for the loan from the comfort of your home. Simply visit the lender institution’s website and fill up the online application. For example, you can apply for a Personal Loan from Bajaj Finserv within minutes.
  • Keep basic documents at hand.
    • Proof of identity (such as your passport, voter ID, PAN card, or driving license)
    • Proof of address (such as your passport, recent utility bill, lease agreement)
  • Most banks will send a representative to meet with you to collect your documents.
  • The lender will carry out a credit check based on your CIBIL score. The CIBIL score has a range of 100 to 999. The closer your score is to 999, the quicker your loan approval comes through.
  • Disbursal of the loan amount is quick. Some lenders disburse the loan amount within 72 hours of verification. If you are an existing customer of the lender, then the process is even easier. Some banks even provide preapproved loans. This is helpful when you need a Personal Loan immediately.

What Other Details Should I Keep in Mind?

The repayment of your loan amount takes place via EMIs. The repayment tenure for a Personal Loan is usually from one to five years. Personal Loan interest rates start at 13.99% onwards. The lender charges basic processing fees for the loan. For example, Bajaj Finserv charges Rs.999.

Summing up

Getting a Personal Loan tends to be convenient and hassle-free. As you do not need to provide security or collateral, the lender disburses the loan amount quickly. So, if you are in urgent need of money, opt for a Personal Loan. Just fill up the loan application form and provide your documents. Then wait a few days for the loan amount to hit your account. It is that easy!

 

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