Indian residents looking for some quick funds to meet their monetary needs can apply for a personal loan from banks and financial institutions. However, it takes some considerations to see your loan application status changing to ‘approved’. It is important to know about the process to apply for your first personal loan.
Decide the Amount
The amount you want to apply for depends on your needs and capacity. Another important consideration is the EMI amount. Use an online tool to calculate the amount you pay every month for the loan and find out if you can afford it.
Know About Interest Rates
You might want to know what is repo rate and how factors like repo rate affect your loan interest rate. Consider the interest rates and total interest on the loan to find out if the deal suits your financial goals and condition.
Compare and Find the Best Deal
With a large number of options available, it can be confusing to find the right lender. It is best to compare the offers and finalize the deal that suits your needs.
Process of Applying for a Personal Loan
- Go to the website of the bank or institution you want to apply for a loan
- Find the page for ‘Personal Loan’ and click on the ‘Apply Now’ option
- You will be presented an application form where you fill in your personal, professional, and financial details
- Once you submit the form, an agent gets in touch with you for documentation
- Your application is reviewed and if approved, you get your funds into your account
The exact procedure might differ between lenders and it is advisable to check beforehand. Most financial institutions today offer an easy application process, quick approval, and instant disbursement apart from tax benefits.
The simple interest and compound interest rates on your personal loan also vary from lender to lender, so you should enquire about these things before applying.