A personal loan is basically a loan that can be used by the borrower for any purpose. It could either be to pay off another loan with a higher interest rate, to meet emergency medical expenses, a wedding or a foreign trip. This is an unsecured loan which means there is no collateral required. Loans are usually approved within a few days.
Getting a personal loan is possible in 4 easy steps:
- Approach your bank to check if you are pre-approved.
- Compare all personal loans available.
- Check Eligibility.
- Submit documents to get final approval.
Check if You are Pre-Approved
One of the easiest and quickest ways to get a personal loan is to check if you are pre-approved for a personal loan from the bank where you already hold a savings account. If you have a credit card or an existing loan with your bank, there are chances that you may already be approved for a personal loan. There are banks that let you check if you are pre-approved and apply via NetBanking itself. In a matter of few clicks, you can have the approved amount credited to your account.
If not, you can visit your bank branch and ask for details on their personal loan products. Since you are already a customer, getting a loan through your bank will save you time and extra paperwork.
Even if you are pre-approved, it is always best to shop around and look for personal loans from other companies to see if you can get a better rate. Not only rate, check for things like processing fees and prepayment charges.
Interest rates can vary between 10% and 18% depending on the company and each individual case.
Loan rates & charges can be found on the company’s website or by calling the call centre.
Once you have decided which personal loan is the best fit for you, it’s time to check eligibility.
Most companies have eligibility criteria laid out on their website. Check if this matches your profile.
Below are the basic documents required to get a personal loan:
- ID Proof
- Address Proof
- Income Proof (I.T. Returns)
- Bank Statement
- Salary slip (If salaried)
- Proof of business is Self Employed
Once these documents are ready, you can make an online application for a personal loan. The company will get back to you confirming if you are approved and if any more documents are required. Post-approval, the amount will be credited to your account in 24-48 hours.