Personal Loans can be availed with minimal documentation and do not require any collateral or security. You can use it to fund educational, retirement, vacation, medical, or emergency expenses. There are many instant personal loan apps in India that you can choose from as a medium to apply for a personal loan. Personal loan interest rates, eligibility, and procedure can be viewed on the apps themselves. All you need is your Aadhar Card and Pan Card in many cases.
How to choose the perfect Personal Loan
There are several factors to consider before choosing the most appropriate loan app for a Personal Loan:
- Time, urgency, and capacity to repay.
- The time of disbursement of the loan is an important factor. Many apps can take a few hours, while many may take weeks to provide funds.
- The amount of loan, payment, and tenure are important factors in determining your EMI, which is a crucial factor to choose the perfect loan app.
- How efficient and convenient is the entire loan process with minimal documentation: ID proof, address proof, and income proof.
- The interest rate and the processing fee are critical factors as they are included in the total cost of the personal loan.
- EMI or equated monthly instalments depending on the loan amount, the interest rate, and the tenure. You can use online EMI calculators and adjust the required amount to reach the right EMI, which can be payable.
How to Check Eligibility for Personal Loan
You need to be sure whether you are eligible for a Personal Loan or not, which may vary from lender to lender. Here are some basic eligibility criteria:
- Income – If you own a business or if you are salaried, or an employee of Public-Sector undertaking matters
- Age – You should be within the age range of 21 to 60 years.
- Occupation – You should be in the current job for at least 2 years with the current employer.
- Work Experience – You must have experience of around 2-3 years to avail of the Personal Loan.
- A Credit Score that describes your creditworthiness is a significant parameter that should be 750 and above to avail of a loan at lower rates of interest. You must also have a good repayment track record.
Documents Required to apply for a Personal Loan.
- Duly Filled Loan Application Form
- Identity Proof like Passport, Aadhar Card, PAN Card, Voter ID or Driving License
- Proof of Address like Utility Bills, Passport, Aadhar Card, PAN Card, Voter ID or Driving License
- Income Proof-like ITR Returns, salary slips (last 3-6 months), Bank statements, etc.
- Passport size photographs
Tips for Personal Loan Application
- Analyze your need for a personal loan, manage your budget and chalk out a plan to pay the monthly EMI payments.
- Understand the eligibility criteria set by the lender and conduct a thorough research about the lender and the kind of personal loans they offer.
- Check your Credit Score to estimate your loan amount and interest rates
- Avoid errors in your Credit report and check for any discrepancies for a smooth personal loan application process.
- Compare personal loan offers of various banks, loan apps, and NBFCs
- Read the terms and conditions and seek assistance in case of any confusion or queries regarding the clauses or fees charged.
- Do not apply for multiple loans as it may affect your loan applications in the future.
- Understanding the Pre-Payment and Part Payment process in Personal Loans
Apply for An Online Personal Loan In 5 Easy Steps
The following steps should be followed to apply for a personal loan.
Step 1: You can choose to avoid personal visits to banks and instead opt for the best loan app to apply for a personal loan which can be processed in a few minutes.
Step 2: You must fill up the online application form accurately with your personal, and financial details
Step 3: You simply need to select the loan amount required and a loan tenor to get instant loan approval.
Step 4: You need to upload all the required documents as discussed above with the application form for verification.
Step 5: Once your loan application form is verified and approved, the personal loan amount will be disbursed in your bank account.
Personal loans have several benefits and are availed with quick loan approval and disbursal possible, which can be possible in 24 hours. These loans are unsecured and come with no restriction on the use of funds. The application process is smooth and requires minimal documentation, thus saving your time, effort, and money. Just follow the right procedure, and your needs can be fulfilled using your approved personal Loan.