Personal loans are offered by various kinds of lenders, whether they are nationalized or private banks or non-banking finance companies. Most of these lenders offer personal loans to individuals and businesses without asking for collateral to secure the loan. Loans are also offered for tenures that last anywhere between 1-5 years. You can avail these loans for several different reasons such as funding a wedding, going on a vacation, buying a consumer durable or even renovating your house. The process of applying for a personal loan online is also very straight-forward and simple. Here is a step-by-step guide you can use to apply personal loan online.
Step 1: Compare the various lenders
Before you apply for the loan, you must ensure that you compare the various lenders offering personal loans. This will help you understand the interest rates offered by the different lenders, whether they are banks or NBFCs. A simple google search can help you understand what the various interest rates, tenures and loan processing fees are, as proposed by various lenders.
Step 2: Use the EMI calculator
The greatest benefit of applying for personal loan online is that you can determine the EMI amount with the help of an online tool known as an EMI calculator which is available on the lender website. You can use various permutations and combinations of numbers (interest rates and tenures) to arrive at an affordable EMI amount.
Step 3: Send your online personal loan application
After comparing the lenders and finalizing one that best suits your requirements, you must visit the lenders website. Let’s say you choose Bank of Baroda to apply for the loan. You must visit the bank’s website, obtain an instant electronic approval for your personal loan and send out your loan application. You can apply for the loan based on the minimum and maximum amount sanctioned by the bank; however you need to convince the bank that you are capable of repaying it.
Step 4: Submit your documents
Your loan is considered only if you can provide the necessary documents as listed in the application form. Ensure you have scanned photocopies of all the documents listed in the application form, to support your application. You may be asked to provide documents like your credit scores, identity proof, address proof, bank statements, income proof, and salary slips of the last 3-6 months and so on. You can provide soft copies of these documents with your instant personal loan application. Online personal loans typically require minimal documentation. In some cases, the bank may even send over their representative to collect photocopies of the documents.
Step 5: Wait for loan to be sanctioned
The bank now takes your application under consideration and check if you are eligible for the loan. Your income and credit repayment behaviour is a major factor considered by banks for approving your loan application. If the bank is convinced with your credit worthiness, your loan will be sanctioned instantly.
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