What are the steps to apply for Personal Loans online?

[Kanika Shelatkar]

There are times when you need funds for emergencies or for fulfilling your personal goals. It is during such times you avail of Personal Loans. The most popular product offered by banks and other financial institutes is loans. You can apply them for tenures up to five years and repay them in equated monthly instalments. Nowadays, lenders offer these loans online as well with minimal documentation.

Following are the quick and easiest steps to apply for Personal Loan online:

Compare lenders
The Personal Loan offered by lenders is best for short-term goals. The idea is to find a lender who provides an affordable Personal Loan interest rate over the term you are comfortable with. Generally, you get charged lower rates on bank loans than other lenders. Also, when comparing the lenders, check the processing fees, disbursal time, and penalties. Shortlist some and proceed to the next step.

Calculate the EMIs
The best part about Personal Loans online is once you shortlist the desired lender, visit their portal and calculate the payable EMIs using the Personal Loan EMI calculator. This is a free online tool where you add the principal amount, interest rates, and loan terms for finding the accurate figure. You could try different permutations and combinations of the mentioned figures until you arrive at an affordable EMI. This helps finalise the lender instantly.

Start the application process
Once you are aware of the EMIs, start the application process. As you visit the lender’s portal, you need instant electronic approval. Then, you start filling up the application form. This is a basic one where you provide details such as name, address, contact information, employment and income details, etc. Make sure you do not ask for the loan amount that exceeds the maximum sum sanctioned by lenders.

Documentation process
This is an important step in the online Personal Loan application wherein you upload the listed documents. You require scanned copies of ID, address, and income proofs like PAN, Aadhaar, etc. Additionally, you also should have copies of the salary slips, bank statements, and credit ratings. While you can upload the soft copies, some lenders send representatives to collect the hard copies from you.

Wait for approval
After lenders go through your application and documents, they check Personal Loan eligibility, including income and credit score, for deciding your creditworthiness. Based on the date in front of them, your application gets approved. The lenders send a mail communicating the loan terms, including the sanctioned amount, tenures, and EMIs. Most lenders disburse online loans into your Bank Account within hours.

https://www.bankofbaroda.in/personal-loan-emi-calculator.htm