Applying for a personal loan? Here is a step-by-step process
Personal loans are a convenient way to finance almost any immediate need. Weddings, vacations, higher education, medical emergency, and debt consolidation are just some situations where a personal loan comes in handy
But you may have queries on how to apply for personal loan. Here is a step-by-step guide.
Choose the best loan for you: You may think all personal loans are the same. But it is the finer details that make a difference in the long run. Check with different banks and non-banking financial companies (NBFCs) before settling on one loan. Some lenders have lower interest rates than others do. With some personal loans, you do not have to pay processing charges. Some lenders may have a lower prepayment or foreclosure charge than other lenders.
For example, Rita was shopping for a personal loan to fund her wedding. She found that Bajaj Finserv offers a flexi personal loan. This feature was attractive to her, as she wanted to repay her loan at the earliest.
Keep your documents in hand: Getting a personal loan is not hard if you have a steady income. Smita draws a salary of Rs 18000 at a reputed organisation. She found it quite easy to get a personal loan.
To apply for a loan, you will have to submit some documents. These are:
- Age proof (e.g. passport or PAN card)
- Address proof (e.g. passport or lease agreement)
- Two passport-size photographs
- Salary slips for the past six months
- Bank statements for the past three months
Fill up the application form: Walk into a bank or NBFC of your choice and ask for a loan application form. If you are strapped for time, no need to worry. Lenders like Bajaj Finserv have made it so easy to apply for personal loan. They have websites where you can apply for a personal loan online. The process takes just a few minutes. Within 5 minutes of submission, you get approval for a loan. Besides, there is a super-quick turnaround time of just 72 hours.
Just ensure that all your details are correct. Any discrepancy in your documents and details can lead to rejection of your loan application. An agent from the lender may contact you to collect all your documents.
Cooperate with the verification process: Once you submit your loan application, get ready for the verification. Any sign of non-cooperation could affect your loan application. So, be sure to cooperate with the authorities. The bank will also review your credit-worthiness by checking your CIBIL score.
Approval of your application:The lender will inform you about loan approval once the verification process is complete. If the lender requires more documents, they will inform you.
Disbursal: Once the lender approves your application, they will issue a delivery order. The loan amount will then be credited to your account.
All that remains now is repayment. Lenders like Bajaj Finserv make this easy for you. They issue an online account where you can keep track of your loan repayment schedule.
Just keep in mind that there are personal loans for specific situations. You can avail a personal loan for travel, or for a wedding. All you have to do is choose the best personal loan to suit your requirements.