We often feel short of funds when it comes to travelling for leisure,
home improvement, marriage, or any unexpected situation that needs
quick money. There are other situations where unforeseen circumstances
may compel us to dip into our savings and add to our financial burden.
However, it doesn’t have to be like that. In all these situations, a
quick Personal Loan can serve the
purpose without putting you under financial stress.
Read on to
learn how to get an easy Personal Loan to meet your urgent financial needs.
Personal Loan and How it Works
A Personal Loan is usually an unsecured loan offered by
financing institutions or lenders to help you fulfil various financial
requirements. Its approval process depends on the lending partner’s
eligibility criteria and your creditworthiness. Your CIBIL score,
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 factors before approving your loan.
The Personal Loan repayment amount is based on the principal loan
amount, the repayment tenure, and the applicable interest rate. You
can use a Personal Loan EMI calculator,
An Example of Personal Loan Calculations
To understand how the Personal Loan calculator works, let us take
a look at the example given below:
Loan Amount = ?1,00,000
Tenure = 12 months
Processing Fees (With GST) = ?4,000
IRR =
22%
EMI = ?8,885
- Total Interest Payable: ?8,885 x 12 months – ?1,00,000
- Principal = ?6,620
- Total payable amount in 12 months = ?1,06,620
- Total cost of loan = Interest Amount + Processing Fees = ?6,620 + ?4,000 = ?10,620
What Can You Use A Personal Loan For?
A Personal Loan can be used to meet various financial demands. You can use the amount to fulfil your travel goals, pay for your dream wedding, cover medical expenses, or even pay for other loans. You can also use the money from a Personal Loan for home improvements or remodelling work.
How to Get a Personal Loan in 5 Easy Steps?
Here are a few simple steps to apply for a Personal Loan:
- Step 1: Check the Personal Loan Eligibility Criteria
Before applying for a Personal Loan, review the lender's approval process, considering eligibility and required paperwork. Lenders evaluate your creditworthiness based on factors like age, income, credit score, and work history. You must also prepare the necessary documents beforehand and upload them digitally during the application process.
- Step 2: Check Your Personal Loan EMI Amount
Calculate your monthly loan repayments with an online EMI calculator. Simply enter the loan amount, interest rate, and tenure. This can help you figure out the loan EMI you'll have to pay the lender each month.
- Step 3: Apply for Personal Loan Online
After completing the above steps, you may begin the online loan
application process. To get started, you’ll have to visit the lender’s
website and select the 'Apply Now' button to fill out the application
form. You’ll have to enter your details, such as date of birth, PAN
card details, and your residence and employment details. After filling
out the application, attach the required documents and press the
'Submit’ button.
The bank will examine your loan application only
if all your documentation is in order. So, it’s important to
double-check your documents for accurate details before submitting them.
- Step 4: Wait for the Lender’s Approval
If you fulfil the lender's eligibility conditions and submit all the required documentation, your loan application will be approved. If the lender requires any extra information or documentation, you will be required to provide that before they can process the loan.
- Step 5: Experience Quick Loan Approval and Hassle-free Disbursal
This is the final step in the Personal Loan process. At this stage, you just have to wait for the money to be deposited into your account. A Personal Loan is usually approved and disbursed within a short time.
ALSO READ :- Check Your CIBIL Score Today For A Personal Loan...!
What are the Factors to Consider Before Choosing a Personal Loan?
Here are the factors that you must consider before choosing a Personal Loan:
- Loan Amount and Tenure
Determine the amount you need and assess your repayment capacity so you can plan your finances accordingly.
- Interest Rate and Other Charges
Check the interest rate and other applicable charges on the Personal Loan. Be aware of any additional charges like processing fees and penalties.
- Credit Score
Your credit score or CIBIL score is a three-digit value that ranges from 300 to 900 and reflects your creditworthiness. A higher score, preferably over 750, improves your chances of loan approval with favourable terms.
- Pre-/Part-Payment Option
Evaluate if the loan allows early repayments. Prepaying early can save on interest but be aware of any nominal charges during the lock-in period.
How to Check Your Free CIBIL Score?
To check your free CIBIL score online, follow these steps:
- Step 1: Visit the CIBIL score checker website.
- Step 2: Select your employment type and specify your gender.
- Step 3: Enter your details, including full name, email ID, PAN card number, etc.
- Step 4: Agree to the terms and conditions, then click 'Submit.'
You will be able to view your CIBIL score report within minutes.
To Conclude
Now that you have learned how to get a Personal Loan easily, you can go ahead and apply for one without any difficulty. Simply go through the steps mentioned above to find the best Personal Loan offer from your chosen lender. Don’t forget to check CIBIL score and loan EMIs before you get started on your loan application journey!
Frequently Asked Questions
1. How do I track the status of my Personal Loan
application?
You can contact the customer care
representatives from your chosen financial institution to track the
status of your Personal Loan application.
2. What is the Personal Loan process for
self-employed applicants?
The Personal Loan
application process for self-employed applicants is the same as for
others, with just slight differences as per the applicant’s profession.
3. Is there a fee for the Personal Loan application
form?
There are usually no fees associated with
getting a Personal Loan
application form, either online or offline.
