Are you planning a big Indian wedding or gifting your siblings their favourite brand? But running out of your budget? Personal loans can be your go-to plan, not just for these options but so much more. With increasing inflation, buying luxury items in one go can be challenging. Rising prices and instability can be a hardship. Whether it’s your wedding plan, world tour or debt clearance, personal loans can be the saviour at big moments of your life.
Many people opt for personal loans to meet their larger expenses. A larger audience prefers personal loans because they do not require collateral, and they can apply for personal loans from financial institutions or online portals. This guide will help you know what it is and direct you on how to get a personal loan.
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What is a Personal Loan?
A personal loan is an amount obtained from financial institutions like banks, online lenders, and credit unions for various purposes, such as consolidating debts, dream wedding plans, house or office renovation, and other significant expenses. Personal loans are unsecured and do not need collateral. You can avail a personal loan for a sudden emergency. Nowadays, banks provide online and doorstep assistance, making the process seamless, less stressful and convenient.
A Step-by-Step Guide To Apply For a Personal Loan
Digitalisation has made it possible to apply for loans in just a few clicks, sitting anywhere in the world. You can apply for loans without stepping into the banks by submitting some document information online. Let’s have a look at how to get a personal loan.
- Go to the bank’s official website or other financial institution from which you wish to take loans.
- Enter your mobile number.
- Enter your personal information like name, address, annual income, etc.
- Enter document information like PAN card number, PIN code, and DOB.
- To verify your contact number, enter the OTP sent on the number.
- Select your reason to apply for a personal loan.
- Select the type of resident.
- Compare different offers and browse for loans that align with your requirements.
- Choose repayment tenure
- Select the desired loan amount and apply for it.
- After the KYC is completed, apply.
Factors To Consider Before Getting a Personal Loan
Determine Your Requirements
Before applying for a loan, it is essential to know the purpose of taking up a loan and evaluate how much amount your purpose will need.
Check Eligibility
Once you are sure about the amount you will need for the purpose, check if you are eligible for it. You can find out your eligible amount online or in banks.
Check Your Credit Score
A credit score is an essential factor in getting a loan approved. It is insurance for your creditworthiness. The lower the credit score, the lower the interest rate on your loans. So, it is essential to maintain your credit score to avoid paying higher interest rates. You can quickly check your credit score on various banking apps and online sites.
Compare Good Deals
Different finance institutions and lenders offer different deals. So, before you get a loan, compare various loan offers from banks and lenders. For the greatest deals, don’t forget to check interest rates, tenure durations, etc.
Calculate EMI
Evaluate your monthly instalments; you can customise tenure and interest rates that match your income. Calculating EMI can give you a clear idea and help you plan your finances accordingly.
Documentation
One of the most important things to look at is documentation. Ensure you have all the documents needed to get a personal loan. Be ready with proof of income, like salary slips and bank statements, address proof (Aadhaar card), and identity proof (PAN card).
Conclusion
Getting a personal loan doesn’t have to be stressful. It’s just about the simple things you get prepped up for before going to an important event. It’s the same kind of thing before getting yourself a loan approved. This session can lead to maintaining financial stability; therefore, to get a personal loan, it is essential to know how to get one. Checking your credit score, keeping your documents, comparing lenders, and checking eligibility are critical factors in getting a personal loan with low interest rates. Once you are prepared, applying for a loan can be a quick process which can be done online or in banks.
I am Arjun Kumar. I am the owner and administrator of Finance Gradeup. I have completed my education in Arts & Technology. Arjun Kumar usually has interests in playing games, reading and writing. He was a brilliant student during his college days. He also works for many private companies, but the main interest of Arjun Kumar is digital marketing. He thinks that reading is a must before providing any quality information to his readers. You can find Arjun Kumar on much social media handles online, or you can learn more about him in about us page.