There are various things for which one needs to obtain a loan. The loan might give a kind of security for that particular situation. The loan amount might discreetly get the specific situation or stress out of the zone. A personal loan is an unsecured loan where there is no collateral required to be submitted by the borrower. To apply for personal loan, one can apply online and offline. The approval of a personal loan might give interim relief and can be used to meet the requisite expenses.
Getting approved for a personal loan generally takes a day to a week. The most crucial factor to be considered while obtaining a personal loan is the individual’s credit score. The bank or financial institution can provide a loan if the individual’s credit score is good. This will maintain the good credibility of the customer with the bank all through life. When there is a need, the bank can help the customer as the customer has good credibility with the bank.
Table of Contents
Obtaining a personal loan can help:
The following are the needs one can repay through a personal loan:
Medical expenses
Home renovation/building
Higher education
Debt consolidation
Travel
Weddings
These expenses can be resolved by gaining a personal loan quickly. With reasonable personal loan interest rates the loan can be repaid within the time frame as well. An individual with a good credit score like 740 and above is good to get approved by the bank for the loan. Generally, all banks give an interest rate below 8% if the credit score lies between 670 to 739 and around 14% if the score is between 580 to 669.
The process to get a personal loan:
- The individual can start up by applying for a personal loan online.
- Clicking on the Apply Online Tab present on the website will help the individual to see the online application form.
- Then the individual need to Fill in a few details and verify the OTP sent to the mobile phone.
- Enter the KYC details and income data.
- Choose the loan amount one wants to borrow.
- The individual has to wait for the bank’s approval and future processing of the loan process.
The primary documents needed to fill the KYC form are PAN Card, Identity proof like Aadhaar Card, Driving license, Passport, Voter ID, etc. The KYC will also need Signature Proof like Passport, PAN card, etc., alongside Address proof such as a Passport copy, Aadhaar card, driving license, utility bill – gas or electricity bill, Voter ID, ration card, rent agreement, etc. These are the essential documents one needs to submit while applying for a personal loan.
Important things to remember before taking a personal loan:
- Maintain a good credit history.
- Compare the interest rates in the market.
- Assess all the costs.
- Consider the need to choose the correct loan amount.
- Evaluate the ability to repay the loan.
- Avoid falling for gimmicky offers and plans.