How to apply for a personal loan?
A personal loan is a sum of money that you can borrow for a variety of purposes. For example, you may utilise a personal loan to consolidate debt, pay for home improvements, or arrange your dream wedding. Personal loans are available through banks, NBFCs and documents online lenders. You have to repay the borrowed funds over time in predetermined EMIs, generally with interest. It can be very useful in emergencies but gather information about the interest rates and other charges before applying for a personal loan. Read further to know how to apply for a personal loan, the eligibility and the required documents for a personal loan.
How to apply for a personal loan?
You can easily apply for a personal loan online from the comfort of your home. Below are the few steps you need to follow to apply for a personal loan :
Step 1: Determine your requirements
Figure out your requirement. It is the first step towards taking a personal loan. Taking out an amount more than you need can affect your financial stability. Always apply for an amount that is required for your emergency.
Step 2: Choose the right lender
The next step is to choose the right lender that offers you affordable interest rates and other discount offers.
Step 3: Check your eligibility
Once you’ve determined how much you require, you should determine whether you’re eligible. To find out how much personal loan you can borrow, use any online personal Loan eligibility calculator or speak with your lender.
Step 4: Calculate your EMIs
Every month, use an online EMI calculator to estimate your loan repayments. You can adjust the interest rate and duration to fit your monthly income and determine what works best for you based on your income and monthly obligations.
Step 5: fill out the online application
After gathering all the required information fill out the online application available on the lender’s official page. Submit all the required documents for a personal loan and apply.
After completing the above steps, your lender will verify all the details and documents provided by you. After verification, the bank will approve your loan application. Contact your lender to solve any of your queries and guide you through the application process.
You can also apply for a personal loan offline by visiting the nearest branch of the lender you choose. Talk to the representatives to know about the application process. Fill out the application and submit it along with the required documents for a personal loan. After verification, your loan will be disbursed.
Documents required for a personal loan
You need to provide the following documents for a personal loan:
Identity proof: PAN card, Voter ID card, Aadhar card, Passport, or DL are all accepted forms of identity (Driving licence).
Residence proof: A utility bill, a phone bill, a ration card, a driver’s licence, a passport, a voter ID card, or a bank statement from the last two months is required as evidence of address.
Income proof: Form 16, most recent wage slips, most recent three-month bank statement confirming salary credits, salary certificate, or income tax return evidence for the preceding three years are all acceptable forms of proof of income. You must also present a CA-certified balance sheet for the preceding three years if you are self-employed.
Age proof: PAN card, Passport, Driving licence, Birth certificate, or School or college leaving certificate are all accepted forms of age proof.
To avoid last-minute problems when applying for a loan, always have the above-mentioned documents on hand. If you need more information regarding eligibility or the needed documents to get a personal loan, contact your lender.
Eligibility for a personal loan
Anyone who meets the basic eligibility conditions can apply for a personal loan at any bank or financial organisation. A few fundamental characteristics are listed below:
- The applicant must be an Indian citizen.
- They must be at least 21 years old at the time of application and no older than 65 years old at the time of loan maturity.
- They should be either salaried or self-employed.
- Monthly income varies depending on the lender. The monthly salary should be at least Rs 15000.
- The candidate must have at least one year of work experience and at least six months with the current employer.
- A self-employed individual must have at least three years of business continuity.
- The applicant should have an excellent credit score. A score of 750 or above is considered a good credit score to get a personal loan
Personal loans can be an answer to any of your financial emergencies whether it’s a marriage, renovation of your home, or medical emergencies. Pay great attention to the specifics and conditions when comparing personal loans, whether online or in person. It’s also a good idea to look into the minimum requirements for a personal loan. Consider the interest rate, fees, repayment periods, borrowing restrictions (minimum and maximum), and collateral requirements at all times. Before applying gather the information about eligibility and the needed documents for a personal loan to avoid any last-minute hassles.