COMPREHENSIVE GUIDE TO ACQUIRING A PERSONAL LOAN
In today’s dynamic financial landscape, a personal loan can be a versatile tool to fulfill your immediate financial needs. Whether it’s consolidating debt, covering unforeseen medical expenses, funding home renovations, or embarking on a dream vacation, a well-structured personal loan can provide the necessary financial flexibility.
Discover a rapid and hassle-free path to securing a personal loan with this concise step-by-step guide.
FACTORS TO CONSIDER
- Opt for a well-regarded lender from the multitude available. This ensures not just favorable interest rates but also a smooth, swift, and trouble-free experience.
- Prior to personal loan application, determine whether your eligible loan amount. This hinges on factors like monthly income, existing loans, EMIs, and total credit card balances. Essentially, it reflects the your creditworthiness.
- Regulated lenders accept personal loan applications on their sites via just filling a simple form, so it’s better to apply online and save all the time and hassle. Essential data includes personal info, employment/business details, income, and PAN/Aadhaar numbers. Some lenders offer speedy pre-approved loans to creditworthy existing customers.
- Considering eligibility, borrowers should choose the loan amount and duration. Personal loans bear higher interest rates, varying with duration. It’s wise to opt for lower amounts and durations, despite eligibility for more, to minimize costs. Pick repayment options, like monthly or a flexible alternative if available.
- Reputable lenders offer convenient online personal loan applications. While some send representatives for physical document collection, others permit online document uploads. Required documentation varies among lenders, potentially including additional items. As personal loans lack collateral, collateral-related papers aren’t necessary.
- Repayment plans involve monthly payments comprising principal and interest, adjustable in proportions. A savvy borrower might prioritize clearing the principal initially, reducing overall interest costs as no further interest accrues post full principal repayment. Alternatively, one can opt for EMI-only interest payments initially, deferring the principal till loan tenure end—beneficial when higher EMI isn’t feasible for some reason.
ELIGIBILITY CRITERIA
Verify if you meet the prerequisites for a personal loan. Most common requirements include:
- Applicant must be an Indian citizen.
- Applicant’s age should range from 21 to 65 years (this varies from lender to lender).
- Applicant must possess a consistent income source.
- Applicant’s credit score must be 700 or higher (this varies from lender to lender).
DOCUMENTS REQUIRED
Presented below are the common documents needed.
- Passport/Driving License/Voters ID/PAN Card/Aadhar Card/Ration Card for identity proof.
- Passport/Aadhaar card/Voter ID/Driving licence/Property documents/Ration card/Lease agreement/Rent agreement/last three months’ utility bills for address proof.
- Latest 3 months Bank Statements & Salary Slips.
- Other documents as income proof like income tax returns or form 16 may also be asked.
(The documents that are required may also vary from lender to lender.)
CONCLUSION
Applying for a personal loan requires careful consideration, responsible financial planning, and transparent communication with your lender. Securing a personal loan is straightforward and smooth, provided your credit history and score are favorable. A reputable lender will offer competitive interest rates and customize repayment to fit your finances. With a reliable lender, you can swiftly access your loan, all from the convenience of your home.
Also Read:- Top 5 Banks For Personal Loans In India
