Financial emergencies can catch you off-guard at any point in life, and do manage that; personal loans are perhaps the most preferred choice. What makes this credit option a hit among borrowers is that the turnaround time to process a personal loan is relatively short. The funds come with no end-use restrictions and can be used for an array of purposes like medical emergencies, home improvements, consolidating debts, covering wedding expenses, and so on.
Thus, individuals looking for quick personal loans need to know the application process and other things to expedite the process even more.
StEps to Apply for Quick Personal Loans
Almost all leading financial institutions offer quick personal loans in India. While they may have different terms and conditions and rates, the application process remains more or less the same.
Here are the steps to apply for quick personal loans:
Compare Lenders Online for the Best Interest Rates
Personal loan interest rates vary from lender to lender. Therefore, it is necessary for you, as a borrower, to compare interest rates online to get the most favourable one. Settling for an affordable personal loan interest rate is crucial to keep the borrowing cost minimal.
This step takes the most time on the borrower’s end. Once borrowers find the best loan deal, they can move to the next step.
Meet the Eligibility Criteria
A personal loan eligibility check is imperative to avail of quick personal loans. Since a personal loan does not require collateral, lenders ensure that the applicants are eligible to repay the loan without hiccups. Following are some standard eligibility criteria that individuals need to fulfil to get credit.
- Age between 21 to 65 years
- Salaried, self-employed business owners, professionals with a steady monthly income
- Employment or business ownership of at least 2 to 5 years
- A credit score of 750 or above is preferable
Note that eligibility criteria are not the same for all lenders. Thus, individuals can use a personal loan eligibility calculator to check theirs.
Decide on the Loan Amount
Borrowers applying for personal loans must decide on the amount they wish to borrow before applying. The golden rule is to borrow what you can repay comfortably. While over-borrowing can damage your finances, under-borrowing does not fulfil your purpose.
Hence, regardless of eligibility, borrow the amount you need, not for splurging. While it makes repayment more manageable, you do not have to pay a larger sum in interest. You can also use a personal loan EMI calculator to decide the loan amount. It helps determine the principal and tenure to arrive at the right decision.
Apply for the Loan
Once the loan amount, eligibility criteria and interest rates are taken care of, you, as an intending borrower, need to follow the steps to apply for personal loans.
Visit your preferred lender’s website
Go to the ‘Personal Loan’ segment
Fill out basic details like your name, contact number, and amount you want to borrow and click on ‘Apply’
The representative of the lender will contact you soon and guide you to the next step of the process.
Complete the Documentation
You need to submit the required documents to get instant approval and faster disbursal of personal loans. Below is the document checklist that lenders usually ask for:
- Identity proof
- Address proof
- Income proof
- IT return details
- Bank account statements for the last 6 months
Besides, lenders may ask for additional documents as well and when needed. At the same time, you also need to read the fine print and the terms and conditions of lenders to avoid any glitches later.
Once the documentation is over, lenders verify all the information provided, and if everything is in accordance, the loan is approved. After approval, the loan disbursal takes within 1 to 2 business days to the borrower’s bank account.
However, before opting for quick personal loans, you must consider a few factors for a smooth application process.
Things to Consider for Quick Personal Loans
An informed borrower makes the right decision that helps to get approved for personal loans quickly. Here are the things one needs to know:
Choose the Right Loan Type
Personal loans are of different types. Depending on the end users, they are available under other names. Travel loans, medical loans, wedding loans, debt-consolidation loans and home improvement loans are some popular types of personal loans.
While these are personal loans only, choosing a specific type will help you get special offers and exclusive repayment options. Thus, opt for a personal loan that fulfils your particular needs.
Clear Repayment Management
A clear understanding of the repayment path helps borrowers more than a way. For instance, knowing the EMI liability helps you in monthly budgeting. Likewise, the total interest outgo helps borrowers properly use additional funds for part-prepayment. A proper repayment plan also aids borrowers in fulfilling their short-term and long-term financial goals.
At the same time, having a spotless repayment history is also crucial to maintain a good credit score that helps you get more funds in the future.
Contact Existing Lender
Individuals can contact their existing lenders to qualify for a competitive interest rate on quick personal loans. In most cases, if they have a good relationship with lenders, they can get exclusive loan offers for being loyal customers.
Lenders usually offer pre-approved loans to their existing customers.
The application process for quick personal loans is less-time taking and hassle-free if you know the requisites beforehand. Besides the application, it prepares you financially for what to expect in this borrowing journey. All these lead to a quick financing solution which takes care of any unplanned or unexpected expenses without putting too much financial burden.