Have you ever applied for a personal loan? If not, then this is the perfect place to know about How to get a Personal Loan. We have listed here all the important information related to personal loan.
What is a Personal Loan
It is a loan which is given to a person without taking any security. There is no need to mortgage any asset against this loan. You just need to submit documents as proof of your income. Lenders call it an unsecured debt. This loan is paid in fixed monthly installment.
What makes it easy deal with
As it not backed by any collateral asset, it becomes easy to understand how this loan works. Personal Loan is considered as most continent loan for a beginner. You just submit your KYC (Know Your Customer) documents and loan is sanctioned to you within 1-7 days. The repayment and calculation of this loan is also easy to understand. Lenders accept it that Personal Loan is best loan product to deal with customers.
How to get a personal loan
Now the most important part is how to apply for a personal loan. How to get the loan approved and sanctioned easily. We have listed below all the details for your ready reference.
When you need to apply for a personal loan, first of all check your eligibility. You may visit the lender,s website and check your eligibility. There are many factors which decide your loan eligibility. Like, Your monthly income, You are self employed or salaried, which company you are working, Your loan amount requirement, time required by you for repayment of loan etc. Depending on your conditions of requirement there are various public and private lenders who may fulfill your loan requirement.
You will be required to produce the below mentioned documents
- Address Proof
- Identity Proof
- Income Proof
- Cancel Cheque
- Filled Personal Loan Application Form
You may apply online and upload the required document KYC document. This will take less time and effort in disbursal of your loan.
How to approach
When you have collected all the details of your Personal Loan and arranged all the documents required, now it is the time to contact the lender. You may either apply online or go manually. You may contact their customer care. A representative shall collect the required documents from your doorstep. You may compare various lenders offer online or offline for a lower rate of interest on your personal loan. The eligibility criteria of sanction of loan also vary lender to lender. It always wise to choose the best option available.
Communication for disbursal
Once your loan is approved, the lender will inform you about it. You can hold it a maximum of 30 days for disbursal in your account. At this point of time, you may negotiate a better loan proposal. The higher loan repayment and lower interest rate will reduce the monthly repayment burden. If you are capable to repay the loan faster, you may opt to pay a higher amount.
Personal Loan repayment is done in fixed monthly amount for a fix period of time. The monthly repayment amount may either be deducted directly from your dedicated bank account through ECS (Electronic Credit System) or may be deposited at the branch or office of the lender. The loan repayment date is fixed by the lender for every month. If you fail to repay the loan amount on a specified date then it becomes a default. Thus it is most important to maintain the timely repayment. It also affects your CIBIL score. The higher CIBIL score makes you favorite of the lender and you get the loan approval very easily.
Now you have gone through all the basic information about Personal Loan. You may apply for a personal loan when you need it.
Top Up of Personal Loan
A personal loan top-up is done when you need additional loan amount. You may get the top up just after paying 3 EMIs. It is decided on your monthly income slab. You get a top-up very easily.
There is no lengthy documentation and verification as done at the time of first time. You just have to call you lender after paying 3 months repayments that you need a top-up of your personal loan.
Balance Transfer of Personal Loan
Balance Transfer is an option to lower the interest rate. But it takes a minimum of 12 months to be eligible for the balance transfer with most of the lenders.
Once you opt for the balance transfer, the overall EMI will lower. Also, the time of repayment may be increased. The additional fund may also the taken if required by you. It helps in many ways to go for a balance transfer. However, there are very very people who are aware of this facility.
Please always remember below-mentioned points:
- Personal Loan is the higher interest loan compared to a car loan or home loan
- Avail this loan only in urgent requirements
- It is a good option to fulfill your short-term goals of household or daily life
- If you have a credit card bill of huge amount, get this loan and clear the credit card bill
- Always make the timely loan repayment
- Maintain a good CIBIL Score to get the swift approval of loans
- Pay full and never go to the settlement with the loan. they destroy your credit score
- Top of Personal Loan is an easy option compared to fresh loan
- Balance Transfer will lower your overall EMI and may pay you add on fund