123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

What Is The Procedure To Apply For A Personal Loan?

Profile Picture
By Author: Neha Sharma
Total Articles: 170
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

"A personal loan is a very popular type of unsecured loan. An unsecured loan is a type of loan in which no security has to be provided by the borrower. A personal loan is the loan of choice for people because the lender does not place any conditions on the final use of funds. The funds borrowed through a personal loan can be used for:

• Medical expenses
• Travel expenses
• Purchasing consumer durables
• Wedding expenses
• Business expansion
• Any other reason

Banks, non banking financial companies, and other lending institutions offer personal loans. It has become very convenient to apply for personal loan with any lending institution. With the digital revolution, the entire process of loan application, approval, and disbursement of funds has gone completely online. This has made it really easy to apply for a personal loan.

However, before applying for a personal loan, it is important to remember that each personal loan application has an impact on your credit score. While assessing your personal loan application, the lender requests the credit agency for your credit ...
... report. Frequent such requests point to a credit hungry individual which can lead to lowering of your credit score. A good credit score i.e above 700 is one of the major requirements for a personal loan. So, before you apply for a loan, it is best to shortlist a few lenders and then make loan applications.

Procedure to apply for personal loan:

You can apply for a personal loan either online or offline.

Online application for personal loan:

Many lenders have a completely online personal loan application procedure. This means you can create an account, fill the form, upload your documents and submit it to the lender. The loan application will be reviewed online and approved online as well.

Some lenders have an online application form with the rest of the formalities completed offline by customer representatives.

Once you fill up the form and submit the relevant documents, the lender will scrutinize your loan application and either accept it or reject it.

Offline application for personal loan:

In this type of application, you need to visit the branch of the lender, fill up the form and submit the relevant documents. If you have a prior relationship with the bank, you can consider getting pre-approved for a personal loan which will reduce the application procedures.

Once the form and the relevant documents have been submitted, the lender will scrutinize the loan application and take a decision.

In both online and offline applications, funds are disbursed in less than a week of approval of the loan. "


Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about personal loan. Through her work, she has explained the procedure to apply for one

Total Views: 390Word Count: 460See All articles From Author

Add Comment

Investing / Finance Articles

1. See Beyond: Master The Markets With Expert Online Stock Market Training
Author: seebeyond

2. Stock Market Advisory: How To Identify The Best Stock Advisory For Smart Investments
Author: SandeepS

3. Bridging Loans Finance Lenders For Amazing Experience
Author: Bull Venture Capital

4. Private Health Insurance Providers In The Uk: A Comprehensive Guide
Author: Financeadvisors

5. Equity Release: A Guide To Releasing Equity From Your House
Author: Financeadvisors

6. Do I Need A Financial Advisor To Withdraw My Pension In The Uk?
Author: FinanceadvisorsUK

7. Financial Planning Strategies For Digital Creators
Author: George Ivan

8. Fix And Flip Financing: The Bottom Line
Author: Bull Venture Capital

9. Top Tips To Choose The Right Equity Release Plan
Author: Financeadvisors

10. Unsecured Loans For Bad Credit: Made Easy For Bad Credit Borrowers
Author: Rodney

11. Top Reasons To Choose Mortgage Loans In Hyderabad For Property Purchase
Author: anilsinhaanni

12. What To Look For When Choosing A Monthly Budget Planner App In India
Author: Maninder

13. Smart Decisions Start With The Right Advice: Your Guide To Financial Experts In Hamilton & Auckland
Author: Mega Finance

14. Stock Market Advisory: How A Stock Market Advisory Company Guides Smarter Investment Decisions
Author: SandeepS

15. Top Reasons People Choose Equity Release
Author: Financeadvisors

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: