A Step-By-Step Guide to Apply for an Instant Personal Loan
A personal loan offers you a convenient means to access funds at short notice. It is a flexible option to help you meet any planned or unplanned expense needs. From booking a holiday to repaying a debt, a personal loan can come to your rescue for everything. The best part is that you don’t need any collateral to apply for a personal loan.
However, you will have to follow a procedure to avail of the loan. This blog will guide you through the steps of applying for an instant personal loan. But first, let’s take a look at a few things to consider before proceeding with the loan application.
Things to Consider Before Applying for a Personal Loan
You shouldn’t forget that a personal loan is a debt. At the end of the day, it will leave you with a burden to pay EMIs. So, you need to consider a few things before you go ahead with it.
Identify Your Need
The first thing to do is decide the amount you want to borrow. For that, you need to evaluate your requirements.
You must remember that excess borrowing may later become a financial burden for you. At the same time, short borrowing may not serve your purpose. So, it’s crucial to determine the adequate amount to borrow.
Also, ensure that the loan amount you apply for is within your ability to repay. Otherwise, it can create financial hassles for you in the future.
Check the Interest Rate
The interest rate on a personal loan can vary from lender to lender. This variation can range from 9% to 49.5%. So, don’t forget to check the interest rates different loan lenders offer.
What’s essential to note is that the interest rate offered by a lender may vary from one borrower to another. This is due to the creditworthiness of the borrower. So, consider all the below-mentioned factors when comparing the interest rates of different lenders.
Evaluate Your Credit Score
Your credit score can play a big role when you apply for a personal loan. Lenders look at your credit score to determine your creditworthiness and interest rate.
Keep in mind that the higher your credit score, the better your chances of getting a loan at a lower interest rate.
Determine the EMI
Your interest rate and loan tenure are the two factors that can impact your EMI.
You can apply for either a long-term or a short-term personal loan. While a long tenure may ensure a lower EMI, it can mean paying more interest on your loan. So, keep this factor in mind when determining your loan tenure.
Clarify All Terms and Conditions
There are always some terms and conditions associated with loans, no matter what kind of loan you are applying for. Therefore, make sure to read, understand, and clarify them all before you avail of a loan.
Steps to Apply for Personal Loan
When it comes to a personal loan application, the exact steps may not be the same for all organisations. However, the overall procedure generally involves the steps mentioned below.
You can apply for a personal loan in one of the two ways, either online or offline.
Online Personal Loan Application Process
Here are the steps to apply for a personal loan online:
Step 1: Visit the Lender’s Website or App
Visit the lender’s website or download their app. Now, open it to navigate to the loans section. Select the Personal Loan tab and click on it.
Step 2: Fill out the Online Loan Application Form
Opt for the online loan application form. Enter the required details in the form carefully.
Step 3: Upload the Required Documents
Every lender requires you to submit some documents along with the loan application. These documents generally include your identification proof, address proof, age proof, etc. Scan and upload the required documents.
Step 4: Submit the Loan Application
After uploading all the documents, submit the loan application form online.
Step 5: Wait for the Loan Approval
If your application fulfils the lender’s eligibility criteria, you will be notified about the loan approval. After this, the money will be transferred to your bank account.
Generally, personal loans are disbursed on the same day of the application. However, it may take longer in some cases. Talk to your lender to know the expected loan disbursal time.
Offline Personal Loan Application Process
You can also apply for a long-term or short-term personal loan offline. For this, you will have to visit the nearest branch office of the lender. You will have to submit a printed loan application form along with photocopies of your documents. After this, you will have to wait for the loan application to get processed.
Conclusion
There’s no denying that personal loans are very popular. These loans require minimal documentation and are quickly approved and disbursed. They also need no collateral on your part. Most importantly, they can be easily availed to overcome any financial emergency. However, consider the aforementioned factors when you apply for a personal loan next time.
