Are you stuck in an unavoidable financial crisis? Or do you need cash for covering up your travel or wedding expenses? Worry not; the personal loan is here to help you in such situations.
A personal loan is an unsecured loan that you can avail to meet any personal and legal financial need. In unsecured loans, you don’t need to submit your any valuable possession in the form of collateral security. The repayment terms are quite flexible, and loan payment is fast in personal loan.
You can get a personal loan through a simple five-step process which is as follows:
Step 1- Know your Requirements:
Firstly, you should understand how much money do you need through a personal loan? Assess your needs and calculate the amount you already have for your meeting your requirement. Also, ensure that the loan amount is aligning with your income so that you can easily repay it. Banks offer various amounts ranging between 50 thousand to 40 lakhs as per your income, capability and credit score. So, suit yourself.
Step 2 – Check Loan Eligibility and Credit Score:
After knowing your requirements, you should check whether you are eligible for that amount or not. You can use online loan eligibility calculator or can also check eligibility terms of various banks through the internet.
Your credit score also helps in determining your eligibility. This score is calculated on the basis of your previous repayment records. So, check it online by using the credit score calculator.
Step 3 – Shop Around for Availing Best Interest Rates:
Now that you know about your eligibility and credit score, you can shop around to grab the best personal loan offer. Do online research about various lenders and their offers or communicate with bank representatives through the phone.
Evaluate many offers before making your final choice. Go for the one that is offering you lowest interest rates, desirable repayment tenure and flexible EMIs. Check the authenticity of the lender you are going to choose.
Step 4 – Visit the Bank:
Before submitting your final loan application, you should visit the selected bank for gathering any extra information. Talk to the loan department personnel to clarify your doubts and elicit the proper data about everything.
Sometimes, the information mentioned online regarding any personal loan didn’t match with the actual. So, it’s advisable to go to the bank for confirming everything to save your application from rejection.
Step 5 – Submit Documents and Wait for Loan Approval:
It’s time to submit your personal loan application with all the necessary documents. Although every lender has a unique list of documents, some common documents include your identity proof, address proof and income proof such as bank statements or salary slips.
After submission, the bank will take some time to evaluate your application. You will receive the loan amount within 24-72 hours once your loan application is accepted.
Hence, follow the steps carefully to receive the best personal loan without any hassle.