What is the Procedure to Get Personal Loan?

Personal loans are also known as “all-purpose loans”. They are called so because of the variety of usage they provide. The purpose of a personal loan can be collecting funds for a child’s education, repaying an incomplete debt or simply planning a family trip. Personal loans are the highly preferred type of loans because of the comfortable schedule provided to the borrower. Personal loans have a comparatively less rate of interest than other loan schemes. Factors like these can differ as there are a lot of lenders in this competition. The lenders could be banks, online agents or non-banking credit unions. If you are considering taking up a loan and are wondering how I get personal loan, we have got you covered. In this article, we are going to elaborate on the essential steps required to acquire a personal loan and the certain benefits it comes with. So without further ado let’s get started!

The procedure to get a personal loan

The greatest advantage a personal loan has over other loan types is that no collateral is claimed by the lender and also the process is quite hassle-free to accomplish. Nowadays a personal loan can be requested and approved online. It requires minimal documentation & less waiting time. To understand the procedure a little better go through the factors listed below and get going in real-time. 

Abide by the basic criteria 

The borrower should keep certain pointers in mind before applying for a personal loan. They should at least be above 21 years in age but below 65. They should maintain a credit score above 700 along with valid & accurate documents. 

Calculate the rate of interest 

The rate of interest should be accurately calculated. The rate of interest can be a factor that can make or break a decision. Since the rate of interest varies from lender to lender. Therefore calculating it in advance can help the client make a better decision. 

The EMI

EMI stands for Equated Monthly Installments. As the name suggests it is the amount of money that needs to be paid in instalments, on a monthly basis to the lenders as discussed. The client can figure out the estimated EMI they need to repay against a certain loan amount based on the calculators available online. Knowing the amount that can be considered as EMI during the tenure of the loan helps the customer be prepared with the money a little better.  

Documents required

Given here are some of the documents which are requested during the submission of the loan application. 

  • Address Proof ( Electricity bill/ Telephone bill/ Passport/ Driving License/ Ration card/ Bank records)
  • Identity Proof (PAN card/ Passport/ Driving license/ Voter ID)
  • Salary slip from the last 3/6 months
  • Income tax returns
  • Recent passport photo 
  • A completely filled up loan form 

Filling up the Application Form

Once completed with the checking part, now it’s time to go through the steps that need to be fulfilled while applying for a personal loan online. 

  • Go to the website provided by the lender
  • Search for the loan option
  • Click on “Personal Loan”
  • Fill up the documents that are requested
  • Click on “Submit” and wait for approval.

Benefits of personal loans

Below mentioned are the advantages that make personal loans stand out from the rest.

A large area is covered

Personal loans have always been preferred since they always cover a large area of options. A personal loan has never been a scheme that has restricted or limited access to funds. It could be used for various reasons ranging from the immediate need for funds for medical emergencies or planning a high-end wedding. 

Low-interest rates

A personal loan has an upper hand over others due to the low-interest rates that are provided. This acts as an attractive point to the customers/borrowers. Also, the borrowers are provided with a large amount of money. Having a good credit score also helps, as it can be used to negotiate for lower interest rates.

Collateral free

There are two forms of loans, secured and unsecured. Secured loans mean that there is collateral provided as a backup if the borrower somehow doesn’t end up paying the loan entirely. That is not the case with the unsecured form in it there is no collateral needed. Personal loans belong to the unsecured type. 

Finance’s flexible amounts

A large number of grants are allowed in Personal loans. This amount could range from 1 lakh to 25 lakhs. The amount of funds that is allowed depends upon the salary and the nature of employment of the consumer. 

Quick cash

Personal loans are the fastest approved loans. Some agents approve them within 24 to 48 hours after applying. However, this is only possible if the lender sees it fit after going over your credibility score. Thus, if the customer needs funds on an emergency basis, a personal loan is the best option. 

We are pretty sure that your query regarding how I get personal loan? Is taken care of in an organised way with the points mentioned in this article. Personal loans can act as your best option in all categories. They provide you with the fastest access to money and can be used to combat sudden financial situations in an efficient way. 

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