The personal loan application process simplified
If you are wondering about how to take a personal loan, you are not alone. The process of applying for a personal loan may seem complicated and that’s why we’re here to walk you through it. Apply for a personal loan by following this quick, easy and effective process.
Whether it is to give you a financial hand in planning a wedding or in redesigning your house into your dream home, a personal loan is one of the most useful loans to take. Personal loans are also rather easy to apply for as compared to other loans and are usually unsecured loans, which do not need any collateral as security.
With a simple set of terms and conditions and a well-structured repayment plan, personal loans are quite common in today’s market. If you’re looking to take a personal loan and are unaware of how to go about it, you’ve come to the right place. Read on to find out the application process for a personal loan.
Start by checking your credit worthiness
Credit worthiness determines if you’re eligible for a personal loan or not. A low credit score can result in you not being eligible for a loan. Even if you have a low credit score, don’t be disheartened. There are ways to help you increase your credit score. Paying off unpaid bills is one simple way to increase your credit score. If you have a good credit score and fit into the income bracket required for taking a personal loan, you can proceed with the next step. Most lenders require your monthly income to be between Rs 30,000 to Rs 45,000 to consider you for a personal loan.
Click here to find your personal loan eligibility:
Do your research
Once you’ve decided to apply for a personal loan, it is imperative to first do your research. Look at what different lenders have to offer and compare them side-by-side. By doing so you can pick the option that best suits your needs. A lower rate of interest is one of the first ways to choose a lender, but we also advise you to pay attention to the other terms and conditions like prepayment facilities, application fees, foreclosure charges, interest on prepayment, etc. It also a good idea to use a personal loan EMI calculator to determine the monthly payment you’re required to make during the tenure of the loan period and to calculate your monthly budget accordingly before narrowing down on the loan amount.
To calculate the EMI on your personal loan, click here.
Consider local options
It is always a good idea to look at local lenders and financial institutions first. This makes it easier to visit the lender and be in touch with its representatives in case of any query you may have. Though most loans are granted online, a local option may prove to be convenient for new loan applicants. Local lenders may also offer a lower rate of interest and may even help you through the process.
Get your application documentation ready
Once you’ve decided on which lender to go ahead with, you must work on making sure all documents are in place to ease the process of taking a personal loan. While personal loan documents differ from lender to lender, certain documents are common amongst all. Lenders usually ask for identity proof (such as your driver’s licence, passport, PAN card, etc.), your income proof such as salary slips and account statement, your address proof and income tax returns. Make sure all your documents are ready on time and even take a look at the online application form in advance to collect any information you may need to provide. This helps you hasten the process of application so that you may get the loan quicker. Correct documentation is a very important part in the application process as it plays a huge part in your personal loan application getting approved.
Verification and approval of application
The final step before approval of your personal loan application is the verification of the loan application and the documents submitted to the lender. Documents submitted by you will be double checked by the lender. It is thus a good idea to submit only the most recent and relevant documents thus ensuring there is no glitch in the application. After your initial application, a lender may also ask you to submit other documents if they see fit. Once the lender is satisfied with the application, the personal loan is approved. The amount is then usually disbursed online.
As you go about the process of selecting the right lender for your personal loan, consider Bajaj Finserv. With low rates of interest, loan amounts up to Rs 25 lakhs, tenures ranging from 24 months to 60 months along with all the benefits availed with Flexi loans, Bajaj Finserv’s personal loans may be everything you could have asked for. Applying for these loans are easy. Once you fill in the online form, you will get instant approval and be asked to select your loan amount and tenure. After this, all you need to do submit the document to the representative and then get the money in your account! Read about the features and benefits of personal loans offered by Bajaj Finserv here.