In the world full of uncertainties, you never know when you might need emergency funds Thankfully, there are multiple options available in the market, thanks to personal loans. This is an unsecured loan wherein the borrower can get funds without having to provide any collateral. Moreover, the application process is hassle-free if you have all your documents in place and meet the eligibility criteria. So, if you are looking for instant funds, here are the steps to follow to avail a personal loan –
- Identify your needs: Know what you need is and how much money you will need, and apply accordingly. There’s always the temptation of applying for a loan that is greater than your need. Avoid this by assessing your need. Also, don’t apply for a loan amount that will not cover your financial requirements. In such cases, you will be compelled to apply for a new loan and this can prove to be cumbersome. Proper calculation and assessment is key here!
- Identify your eligibility: Based on your monthly income, various institutions will let you know the maximum amount of loan they can offer you and at what interest rate. It is not necessary that banks will offer you the amount of loan that you require, because they check your repayment credibility before they make the offer. Check your eligibility before you apply to avoid rejection. Moreover, don’t apply to many banks at the same time as it will portray you as credit-hungry and have an adverse effect on your credit score.
- Documentation: Proper documentation is very necessary for a personal loan. Fake documents or incorrect information provided in documents can result in an outright rejection of your loan application. Make sure that all documents you share contain correct information. This ensures a smooth application process.
- Select the Institution of your choice: Depending on various offers you have received, you should make the right choice about where you want to avail the loan from. You must also read the fine print like foreclosure charges and processing fees. After you have evaluated all your offers, go ahead with the one that’s most credible and provides the best offer.
- Disbursal and Repayment: Once you receive the disbursement of the personal loan amount in your bank, the process is automated. Now, monthly EMIs will automatically get debited from your account on a certain date. Make sure that the EMIs don’t bounce, as it may negatively impact your credit score. Many institutions also provide online details of the status of your loan.