How to get a personal loan?

Personal loan is a short to medium term unsecured loan provided by lenders without demanding any collateral or security. The loan amount can be used to meet any of your immediate expenses such as renovating your home or other financial needs.

How to get a personal loan

Unlike other types of loans like home loan or gold loan, which require documents and have a tiring approval process, personal loans are often disbursed with minimum documents and the approval process is quick. The loan amount is processed and credited within a few hours provided the lender is convinced of your repayment capacity. 

Another feature of personal loan is that the lenders offer you the flexibility to choose your loan tenure. Usually, the tenure ranges from one to five years. So, you can select the loan term based on your repayment capacity.

Once you decide on why you need a personal loan and how much you need, you should check whether you are eligible to get a personal loan and what is the maximum amount that you can avail. The maximum amount that you can avail depends on your employment history, repayment capacity, income level, profession and credit history.  

Then, use an online EMI calculator to estimate your monthly loan repayments and reach a conclusion on the interest rate and tenure to match your monthly income.

After calculating EMI, apply for a personal loan with your lender through net banking, online banking website, or by visiting a branch.

Find out what documents are required. The documentation varies from lender to lender, some of the essential documents you must provide along with your application form include:

• Proof of income (Salary statements, Income Tax Returns) 
• Proof of residence and identity proof
• Certified copy of your degrees and licence (For self-employed applicants).

Hand over the documents required for your personal loan at the bank and wait for funds to be remitted to your account.