When you require cash instantly, the best thing to do is to apply for a personal loan online. There are several distinct advantages of a personal loan, which makes it one of the most sought after loans when people need money urgently. The best feature of a personal loan is that there is no limitation to using the funds as long as they are for legal purposes. Hence, whatever your purpose may be, a personal loan can be the best way to get money at attractive interest rates.
Read this blog to know the step by step process of applying for a personal loan online and the things you should do to ensure speedy approval of the loan. Basically, your application may be submitted in five processes. But still, you need to look that what is the complete procedure.
Stepwise Process Of Personal Loan Application:
Step 1 – Determine the Reason for Loan Application
Quite often, you would meet borrowers who have no idea about how much money they require or simply do not know how they can repay the amount. It is also easy to get carried away when your fund requirement is less, but you are eligible for a higher loan amount.
When you apply for a personal loan online, the approval and interest rate depend on many factors like monthly income, monthly expenses, existing liabilities, and the stability of income. It is important to fix the purpose and quantum of the loan application. Consider how much you definitely require and how much would be extra. It is prudent to apply for the amount that you definitely require and not what you might require, as a higher loan amount means more stress on your pockets when the repayment cycle starts.
Step 2 – Determine Your Eligibility
As an informed borrower, you should determine your eligibility well before applying for the personal loan online. To calculate the eligibility and the loan amount, you may use the personal loan eligibility calculator. The calculator is available freely on the lender’s website. Must check all these criteria’s like, Profession, age, income, require CIBIL Score,
Other than the monthly income and net liabilities, the loan eligibility also depends on your credit score. Having a high credit score can make you eligible to avail of the benefits of a lower personal loan interest rate. Also remember that whenever you apply for a personal loan, the credit score decreases.
Step 3 – Arrange Your Documents
Generally, when you apply for a personal loan online, the verification process is carried out online. You have to submit all the necessary important documents like KYC documents (Aadhaar Card, PAN Card, driving license, voter ID card), 2 months’ salary slips (for salaried), or income proof (for self-employed) bank account statement, income tax returns, and processing fee.
Apart from that, all the documents requirements differ from the lending institute. Ensure that the documents you submit are genuine and original. Any false information may not only make you ineligible to apply for new loans but also make a deep dent in the credit profile. Maybe it is possible that the same lending institute will not prefer or Denay to approve the loan for you in the future.
Step 4 – Choose the Right Lender
Indian lenders are incredibly dynamic. Due to the various policy changes in the financial services industry in recent years, lenders have become quite aggressive in approving loans. Earlier, a borrower had to wait for days or even weeks to get the loan approved. Not anymore, as when you apply for a personal loan online, it typically gets approved within a day.
The being said, it is too challenging to choose the right lender. While selecting the best lender, you should carefully evaluate the personal loan interest rates, accessibility, convenience, terms and conditions, flexibility in repayment, and preclusive charges.
Step 5 – Pay EMIs on Time
When you apply for a personal loan online, the lender verifies your creditworthiness and instantly approves the loan by sending the loan amount directly to the account mentioned in the application form.
The due date of EMI falls on the same day of every month, starting one month from the date of loan approval. Ensure that you pay the personal loan EMIs on time, as any default would force the lender to take legal action, albeit as the final step. Hence, it is advisable that too must estimate the EMI amount to have to pay. Calculate your EMI here- https://www.fullertonindia.com/personal-loan-emi-calculator.aspx
Conclusion
Applying for a personal loan online at attractive interest rates is the easiest thing to do when you need money to tackle at the time of sudden financial emergencies. You may also use it to fulfill a long-cherished dream that got stuck due to the paucity of funds. The benefit is that it is an unsecured loan and doesn’t need any type of collateral for applying for the loan.