In Business World Funds are something that one might need at every step of one’s life, especially to attain one’s financial goal. Some people believe that taking a personal loan in such a scenario can be tiresome as it takes a lot of processes and paperwork to finalize.
Here, what you need is a complete understanding of the process involved in the personal loan, as it is too simple. You can avail of the funding quickly.
Steps Involved in Personal Loan Application
A clear understanding of the entire personal loan application can ensure that you get fast approval.
Table of Contents
Checking With Eligibility Requirements
Certain things you should consider to check your eligibility are as follows:
- Credit score of at least 650-700
- Earning at least 15,000 monthly
- Applicant must be at least 18 or 21 years old
- Should have working experience in any firm for at least 2 years or more
- If the applicant has several ongoing loans, it might affect the eligibility criteria
There are certain cases where you are already pre-qualified for the loan, and you can avoid wasting your time while undergoing the processes. The application process may not be same of different banks or financial organization.
Select any specific loan provider, but don’t miss comparing other loan offers
Once you are sure you are eligible, research various loan providers. Start by comparing the offers they have related to the loan. Compare these factors before sticking to one:
- Processing Fees
Surprisingly, people fail to check this as, unknowingly, several people end up paying a huge extra amount as they miss to compare the rates. Go for that organization, that charges less processing fees.
- Interest Rates
Some people think that interest rates vary too slightly, but hardly people are aware that the increasing rate of interest can affect the total amount. Compare the interest rates for sure before settling for one.
- Flexible
Life is very unpredictable and only choose the firm which is flexible regarding EMI, loan period and amount.
- Charges Incurred in Prepayment
Some organizations charge huge amounts if it comes to loan foreclosure before the registered time.
Organizing all the Documents Essential for Personal Loan Application
A list of documents is required to get approval for a personal loan. These documents are necessary to crosscheck your income, age, identity, financial details and more.
Identity Proof
Any government-approved identity that can prove the identity of the person who has applied for the loan.
Address Proof
Any approved ID proof, including a Passport or similar value document which proves the identity of the person, is a must here. These documents work here:
- Salary Slips- 3 months salary slip is a must here; in other cases, an ITR or financial statement is a must for entrepreneurs.
- Credit Report
Your CIBIL score is your key to the loan. A good score will fetch you an easy loan, and vice versa; the plea may be immediately rejected.
Ongoing Loan Statement
Details of any ongoing loan, including a car, home, or any other loan, should be given.
- Proof of any existence or past work experience
Appointment letter, agreement of contractual work, business registration, or more such proofs are essential.
- Photos of passport size.
If all your paperwork is done on time, the personal loan process will be smooth. Try to upload all the necessary documents online.
Finish the set-up of the Loan Application
You need to be ready with a list of information to check your form is filled on time:
- Complete personal details, like full name, date of birth, permanent address and contact details
- Income proof and employment status
- Income expenditure details
- Assets and liabilities
- Total amount needed with repayment plans
If you add the right details, your application will get an easy acceptance.
Loan Increment and Repayment
For those who are unaware should know that after submitting your information, the organization will verify the documents. The verification result will decide the loan appraisal and disbursal process.
- Personal discussion: Personal meeting is compulsory with the organization representative. They might ask you to show the original documents. Make sure to share only the real information.
- Loan amount appraisal: Employer verification may be important for this.
- Sanction of loan: You will get a sanction letter from the organization, which will specify all the points, including the loan amount, interest charged, repayment process and other things.
- Technical work: The technical team plays an important role in the loan approval process as they carefully re-evaluate the entire application.
- Documentation: Without a signed loan agreement, the money will not be reimbursed.
- Amount disbursement: After all the formalities the amount will be credited to that particular bank account you shared with the bank or the financial organization.
To sum up
Understand everything about personal loan application before applying for it so that your loan gets approval without any issues. Do your homework problem and get your personal loan application easily cleared. Let nothing stop you from attaining your financial goal.