personal loan process

Get Easy Personal Loan with 5 Simple Steps

June 27, 2022 • 5770 views
Author: PoonawallaFincorp Category: Personal Loan

A salaried person is often burdened while spending on leisure travel, home improvement, marriage or any unexpected situation that needs quick money. Also, there are situations where a person does not want to touch their savings to pay for any unforeseen circumstance. Here, a quick Personal Loan is often considered to serve the purpose. 

A Personal Loan procedure entails flexible repayment terms and typically does not demand any security or collateral. The best part is that you can now finish the entire Personal Loan procedure from the comfort of your home.

About Personal Loan & How They Work? 

A Personal Loan is generally a type of loan that most banks provide to help people meet their individual needs. These are usually unsecured loans. A Personal Loan approval process depends on the applicant's financial qualifications and creditworthiness. 

Your credit scores, monthly income, previous debt obligations, and credit history, as well as your work status, are all aspects that most banks and lenders consider when determining your personal loan eligibility. Essentially, the lender assesses your repayment potential by examining these characteristics.

An Example of Personal Loan Calculations

  • Loan amount = Rs. 1, 00,000
  • Tenure = 12 months
  • Processing Fees (With GST) = Rs. 4,000
  • IRR = 22% 
  • EMI = Rs. 8,885
  • Total Interest Payable: Rs. 8,885 x 12 months – Rs. 1, 00,000
  • Principal = Rs. 6,620
  • Total payable amount in 12 months = Rs. 1, 06,620
  • Total cost of loan = Interest Amount + Processing Fees = Rs. 6,620 + Rs. 4,000 = Rs. 10,620

What Can You Use A Personal Loan For?

A Personal Loan is a flexible loan that you can use to meet various financial demands. After your Personal Loan approval process, you can use the amount to fulfil your wanderlust, pay for your dream wedding, get the latest electronics or even pay for other loans. You can also use the money from a Personal Loan to do home improvements or remodeling work.

How To Get A Personal Loan In 5 Easy Steps? 

You can now apply for a Personal Loan from the comfort of your home. Here are a few simple Personal Loan process steps for you to acquire quick financial aid:

Step 1: Check Personal Loan Eligibility Criteria 

Check the lender's Personal Loan approval process, i.e., eligibility and paperwork required after determining why you need a Personal Loan and how much you need. Lenders usually have preset criteria to assess your creditworthiness, including your age, income, credit score, work history, and a few other characteristics. Some lenders now feature personal loan eligibility calculators on their websites to make things easier for borrowers. You will also need to submit a few papers. You can upload the documents digitally, but it's best to have them together before starting the application procedure.

Step 2: Check Your EMI on Personal Loan 

Some lenders will let you change the interest rate and term to fit your monthly income. It is one of the crucial Personal Loan process steps. Calculate your monthly loan repayments with an online EMI calculator. To calculate the loan EMI, input the loan amount, interest rate, and tenure. This can help you figure out the EMI you'll have to pay the lender each month when your online loan is approved.You can also play around with the loan amount and term to see how it impacts your monthly EMI. Then you can choose the amount that is most comfortable for you.

Step 3: Apply for Personal Loan Online 

After completing the above steps, you may begin the online loan application part of the Personal Loan procedure.

You will be asked to give some information about your eligibility first. The lender will then present you with the most acceptable loan options to meet your needs.

Then find out what documentation your Personal Loan form requires. Income proof (bank statements, salary slips, or IT returns) and proof of address and identification are usually needed. 

Fill out the loan application form and attach the necessary papers. The bank will examine your loan application only if all your documentation is in order. As a result, double-check your documents before submitting them.

Step 4: Wait for the Approval from Lender 

If you fulfil the lender's eligibility conditions, your loan application will be approved, and you will receive an email or phone call from the lender. If the lender requires any extra information or documentation, you will be required to give it before they can process the loan. Personal Loans are handled quickly, and the loan amount is usually disbursed on the same day. 

Step 5: Loan Amount Transferred into Your Account Hassle-free  

It is the last of the Personal Loan process steps. Here you needn't do anything but allow time for money to be deposited into your account. Customers receive funds for pre-approved loans in a few hours to two days.

As you can see, fast online loans are simple, convenient, and hassle-free. They save you time by eliminating the need to go to the bank and ensuring that your loan is processed as quickly as possible.

So, if you require finances for personal or business purposes, Personal Loans might be an excellent option. The money from the loan will be in your account in 2-3 business days, allowing you to meet your financial obligations.

Thankfully, the internet has fundamentally transformed the loan sector, making it easier, faster, and more efficient to get loans. Follow the Personal Loan process steps in this article, and you'll be able to acquire a loan sooner than you think. Good Luck!

Some Frequently Asked Questions

  • How do I track the status of my Personal Loan application?

You can contact our customer care representatives to track the status of your Personal Loan application. Regular updates will be issued upon each step of the loan process, from document verification to disbursal. 

  • What is the Personal Loan process for self-employed applicants?

The Personal Loan application process for self-employed applicants is the same as for other applicants. The eligibility criteria for self-employed applicants differ slightly from profession to profession. 

  • Is there a fee for the Personal Loan application form?

No. The Personal Loan application form, online and offline, has no fee. There are no hidden charges in our Personal Loan application process. 

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