How To Apply For A Personal Loan?

By Author: Neha Sharma
Total Articles: 243

Living life to the fullest is the mantra now and to enjoy every moment, we do need financial freedom most times. Personal loan helps meet exigencies arising due to lack of finance. Be it wedding expenses, paying off medical debts or to make other payments, it can help to pay off debts. The best part about this loan is they do not need any collateral or security and need minimum documentation. Other best features are that they have super fast disbursals, friendly repayment structures, flexible tenures and good competitive interest rates.

Five easy steps to apply for a personal loan

Loan applications are now made easy and so is the case for this one. Here are five clear steps you need to follow to apply for one:

1. Figure out the loan amount: Take time to analyse your requirement and the amount for which you need to apply for a personal loan. The loan amount may rise from 1 lakh to 40 lakhs in most cases. So, it’s important to be clear on what amount is suitable for you.

2. Check the eligibility criteria: See whether you are eligible for obtaining a personal loan. Read through the rules of the specific bank or FI from which you wish to apply. There are also eligibility calculators that display the loan amount that can be obtained from a particular bank based on your inputs. As per your eligibility, you can check whether you can get the desired amount of loan.

3. Calculate your EMI: Check your EMI options and the monthly amount to be paid. This can also be easily checked through EMI calculators. Simple to operate, all the details about your loan can be checked beforehand through this. You can choose a repayment tenure that suits you. Input this along with loan amount and the interest rate and the monthly payments are equated.

4. Choose the mode of application: Personal loan can either be applied online or offline. If applying through a bank, it can be done online through net banking or an ATM via the bank’s website. It can also be applied offline by visiting the nearest branch.

5. Keep the documents ready: For both online and offline application process, there is a requirement of some minimum documents. In most cases, these will include an ID proof, address proof and income statements such as bank statements, salary slips or IT returns.