A personal loan is a process of lending one-time money to the borrower by any financial institution, whether it is a bank, non-bank administrator, or even a credit card company. The debtor who borrowed the money will repay the amount with its interest over the period of the loan.
This personal loan is given by analyzing the borrower’s employment, rate of income, repayment capacity, and credit history. In this article, we’ll discuss the personal loan procedure you need to follow to avail of a personal loan.
The Key Steps Involved in the Application Process.
Personal loans are an appropriate choice for getting supplementary funds for personal needs. The process of availing these convenient extra funds is so simple.
Before approaching the bank, you must decide your requirements in terms of money. Then, check for loan eligibility by discussing it with the lender. Calculate your budget so that you can settle down the loan repayments regularly. Next, list out the required documents like proof of ID, address proof, bank statement, etc.
The following are the necessary documents required to apply for a personal loan:
- Aadhaar card (Proof of identity)
- Voter ID card.
- PAN Card.
- Form 16 (Proof of income).
- Salary slips
- Bank statements.
- Income Tax Certificate.
- Passport-size photographs.
- Personal loan application form.
The Bank or financial lender may deny your application for a personal loan if any documents do not meet the eligibility criteria. So, prepare yourself with all the required information and documents beforehand.
Process to Apply for Personal Loan
Offline Loan Application
Personal loan application forms are paperwork that are available in every bank.
Following are the steps to be noted for submitting an offline loan application form,
- Go in person to the branch of any bank or financial lender and collect the loan application form.
- Read it twice and gather all the details that are essential to apply for a personal loan.
- Write down your personal information correctly.
- Recheck the spellings properly.
- Make sure to attach the relevant documents that prove your identity, address, etc.
- Once your work is done, submit the form.
- Now, the Bank or lender will verify the documents and decide to approve or deny the loan request.
That’s it. Once you are eligible, the bank will give you the claimed amount.
Online Loan Application
Now, let’s have a look over the process of submitting an online loan application form.
Anyone can apply for a personal loan through their net banking account based on their relationship with the lender.
To apply for a personal loan online, follow the steps mentioned below:
- Visit the website of the Bank or financial lender.
- Under the loan section, click on Personal Loans.
- Click on the Apply now option.
- Enter your details in the personal loan application form properly and click submit.
- An OTP will be sent to the phone number that is given. Enter that OTP carefully.
- By uploading the essential documents, complete the personal loan verification process.
- Now, the bank will assess the eligibility of the applicant and ask for the submission of the KYC documents and income documents.
- After entering the vital information, click OK
- If the bank finds the applicant eligible, the bank will pay out the loan amount to the applicant’s bank account, as mentioned in the application form.
You must be very careful while typing or writing your details in the application form. Your application might get rejected if there is a lack of correct information.
While uploading or attaching the required document, don’t miss uploading any documents. It will also lead to rejection. Incorrect documents and wrongly written application forms will get rejected. So, be cautious while handling this task.
Conclusion
A personal loan application form is available online and offline for free. You can utilize the advantage of this free of cost to practice and be prepared before applying for it.
Proper documents and correct information can help you to gain a personal loan. Thus, these are the steps to be considered while applying for a personal loan.
FAQs
How can I get a personal loan immediately?
Most online personal loan lenders review your loan application and credit your loan amount within 24 hours of loan application. So, as long as you are eligible for the loan and provide all the necessary documents, you can get your loan within a short time.
How do you get approved for a personal loan?
Your personal loan lender will require you to fit the eligibility criteria and provide all the necessary documents like identity proof, income proof, address proof, etc. If you meet your lender's expectations, you can easily get approved for a personal loan.
What is the limit of a personal loan?
The minimum and maximum amount you can borrow for your personal loan differs for each lender. The amount you can borrow ranges from Rs. 50,000 to Rs. 50 lakhs. It is based on the lender and other factors like your age, income, credit score, etc.