According to the RBI data, the credit outstanding of the personal loan segment has shot up by 12.1% from FY2020 to FY2021. The Indian credit landscape is witnessing a significant shift toward small-ticket credit options like personal loans. It gives borrowers instant access to a substantial amount of money without having to pledge any collateral.
However, to reap the maximum benefits of this credit option, borrowers must understand how to personal loan apply. Not knowing the proper application procedure will lead to unnecessary turmoil, finally resulting in the rejection of the loan application.
Know 5 simple steps to apply for a personal loan online with Bajaj Finserv
Due to improved digitization in the financial sector, it has become highly convenient for borrowers to apply for a personal loan online. Here are the five essential steps to guide borrowers for an easy personal loan application with Bajaj Finserv.
Step 1: Estimate eligibility and meet specific criteria
The first and foremost thing that borrowers must do is determine and estimate how much funds they need to mitigate their financial needs. It will prevent them from both over and under-borrowing. Secondly, borrowers should compare different lenders and choose one offering the lowest personal loan interest rate.
After estimating the loan amount, borrowers must check the personal loan eligibility parameters and adhere to them before applying for a personal loan-
- Applicants must be residing Indian citizens
- Individuals must fall in the age bracket of 21 years to 67 years
- They must have a stable source of income
- Applicants should have a CIBIL score of 750 and above
Step 2: Fill up the online application form
In this step, borrowers have to fill the online personal loan application with details, including personal details, monthly income status, details of the workplace, etc. Borrowers need to cross-check all the information before submitting. Any error in the application form will lead to the rejection of the loan application.
Step 3: Choose the loan amount and tenor, and compute EMI liabilities
This is probably the most significant step where borrowers will have to mention their desired loan principal. Lenders scrutinise borrowers’ profiles, including credit score, income status, etc., before deciding on the interest rate and loan amount. Another vital thing that borrowers must do while applying for a personal loan is to calculate personal loan EMIs, helping them plans their repayment schedules.
On this account, borrowers can use a personal loan EMI calculator or an interest calculator to get a clear idea of the EMI amount and overall interest outgo. Moreover, borrowers can select the loan tenor depending on the repayment capability and loan amount.
Step 4: Attach relevant documents
Besides meeting the eligibility criteria, borrowers must keep the necessary documents and attach them to the application form. Here is the list of documents that will help borrowers receive approval of loan principal under the personal loan finance option-
- KYC papers
- Identity proof
- Age proof
- Proof residence
- Salary slips (for the last three months)
- Bank statement (for last six months)
- Form 16
- Income tax returns
- Duly filled application form
However, borrowers must that the list of documents provided here is indicative. Lenders may ask for additional documents during loan processing.
Step 5: Await loan approval
After thoroughly verifying documents and the borrower’s profile, the lender will approve the loan application. Unlike other credit options, the personal loan approval process is simple and takes less turnaround time. With personal loans, borrowers can receive sanctions for loan amounts within a short period and address their monetary requirements effectively. However, if borrowers want quick loan approval, they must meet eligibility criteria set by the lending institution, maintain a healthy credit score, etc.
Borrowers can effectively apply for a personal loan offline by visiting the nearest financial institution branch, filling in the application form and submitting the necessary documents to the executive.
Besides knowing the application procedure, borrowers should also know the things to avoid while taking personal loans, helping them dodge last-minute hassles.
Furthermore, borrowers should look for exclusive pre-approved offers extended by several leading financial institutions on financial products like personal loans, business loans, credit cards, etc. These offers expedite the lending process and make borrowing hassle-free. Willing borrowers can check the pre-approved offers by entering their names and contact details.
To sum up, a personal loan is a multipurpose loan option helping borrowers mitigate monetary urgencies effectively. However, borrowers need to know how to apply for a personal loan and keep the eligibility criteria in mind for the borrowing to be effective.
Author Bio: Arwind is a passionate financial blogger and financial adviser. He has been serving society as a financial adviser for the past 6 years. He shares his financial tips and tricks on Loantrivia. He has an amazing solution for every finance-related query.