Finance

Simple steps to apply for personal loan

Online Personal Loan applications are processed swiftly on the instant personal loan app. Your goals will be accomplished more quickly due to the quick and simple personal applying process. You are in the right place if you are considering applying for a source of finance online. The borrower is the collateral for personal loans as personal loans are unsecured loans. The applicant’s information, creditworthiness and credit history can all be verified by the bank, nothing more. The applicant must also provide proof of employment and demonstrate their ability to repay the loan on time for the bank’s approval. The application is then processed and the loan is authorised.

In this article, you will go through the steps to apply for a personal loan. 

Decide the amount of the loan

The first thing to know is the amount you need based on your requirements. Do not forget to count if the amount you seek is payable. Lenders will always ask for the income proof of a borrower in some way or another. The loan amount will depend more on your income than on your needs. 

The journey to get the loan amount in your bank account

In comparison to other secured types of loans, personal loans are quickly approved and readily executed. The steps involved in applying for a personal loan are broken down as follows:

  • A personal loan application is the first step in the procedure, just like with any other loan. Any individual showing an interest in a personal loan submits an application for one. Both online and offline applications are accepted. Since application forms are processed more quickly, submitting them online will save you even more time
  • The loan application is delivered to the bank. The information you provided in the online application will subsequently be verified by the bank
  • The bank will quickly verify the information you have on file, including your bank statements, salary deposits, and any or all EMIs that have been taken out of your account
  • The bank will check the information you provided in the application form concerning your identity in the following stage. The procedure known as “Know Your Customer” or KYC may be familiar to you. The bank will finish the KYC procedure at this point. You might be required to visit the bank with the original copies of the documents you supplied with the application. In order to finish the KYC process at the applicant’s convenience, several banks now send an executive to the applicant. In the case of the online loan process, just upload the scanned copy f the needed documents
  • The bank may send a representative to your home or place of business to verify the address you indicated on the application form. The bank might also cross-check your job information with your employer
  • The bank will assess your creditworthiness following the completion of the verification process. Your credit score will be checked first. The bank will determine your loan eligibility with the aid of your pay stubs or IT return
  • – Your loan will be authorised right away if your credit score is more than 750.
  • Your CIBIL, age, yearly salary, the potential for a wage increase, and remaining service years will all be taken into account when determining the loan amount and term
  • You will need to pay the service fee once your loan has been approved

What documents can a lender ask for?

Usually, the process of sanctioning the personal loan does not require much documentation, especially in online mode. But even if someone/ a bank asks, below are the documents you should have. You must provide the bank with documentation of your identification, address, and income. You may provide copies of your Form 16 tax return, pay stubs, bank statements, and wage slips as evidence of your income. You might also be required to provide a copy of your offer letter as documentation of your continued employment. You may provide copies of your PAN card, passport, driver’s licence, Aadhaar card, or voter ID as identification. You may provide copies of your passport, Aadhaar card, voter identification card, Aadhaar card, utility bills, or LIC payment receipt as proof of residency. You must also send two pictures the size of a passport.

Alert: You are not required to pay any fees at the moment your application is submitted on an instant personal loan app. The application form is freely accessible online. This form is also freely available at a branch. There aren’t any costs associated with applying for a loan. But after your loan has been reviewed and granted, you may pay a processing charge to the lender. This fee often represents a portion of the loan balance. Applications submitted offline or online will also incur the same processing cost.

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