Why should you prefer a personal loan over other types of loans? A personal loan provides the flexibility of use and is an unsecured form of loan as there is no collateral requirement. The borrowed amount can be utilized for planning your long-awaited trip, medical emergency, royal wedding, etc. Other types of loans usually require you to provide collateral. In contrast, personal loans offer loans at a lower interest rate and follow a straightforward amount disbursal process.
Below is the simple process to follow to apply for a personal loan. It may vary depending on the bank or financial institution you want to leverage the loan facility.
Assess Your Requirement for Loan
There must be a purpose for which you want to borrow money, which can be anything. The calculations and assessments should be made in advance regarding the purpose for which you wish to avail of a loan. Firstly, you must evaluate your existing assets and liabilities and decide on the loan amount you need to borrow. Do not over-borrow or under-borrow.
Evaluate Your Eligibility
Different financial institutions have different eligibility criteria set for the borrowers. A few common points include:
- Your age group (usually 21-60 years)
- An individual must be a residing citizen of India
- An individual must be a salaried employee with any MNC, Private, and Public Company with a specific minimum work experience, as stated by the respective bank.
- Few banks might also require a minimum CIBIL Score of 750 and above.
- Few documents are mandatorily required, like, identity proof, residence proof, salary slip for the last few months, etc. This also varies from bank to bank.
4. Compare Interest Rates Offered by Banks
Interest rates vary across different banks depending on various factors. Before choosing and applying for a loan, you should compare them. The interest rate usually varies based on the borrowed amount, the loan’s tenure, and the individual’s credit history. Therefore, it is advised to wisely calculate the loan amount such that you don’t pay anything extra.
5. Consider Other Miscellaneous Charges
Apart from the interest amount, there are various other associated charges to a loan like a prepayment fee, processing fee, etc. The bank or the financial institution with minimum associated expenses should be your priority to reduce your loan amount’s overall cost.
6. Evaluate and Calculate the Estimated EMI Amount
After considering all the factors mentioned above, you should calculate the estimated EMI amount using a personal loan EMI calculator available across various websites. This is to get a reasonably accurate idea of the amount you’ll have to pay and the overall cost of borrowing.
7. Make a Choice and Apply for Loan
After all these steps, you can choose the best loan provider suitable for your fund requirement. You can easily apply for a personal loan online in few clicks by entering your details and uploading the essential documents.
Accomplish Your Dreams with a Personal Loan
With the uncertainties taking a toll, we should not hold on any longer to live our dreams. If the lack of funds is the hurdle coming your way to achieving your goals, a personal loan is ideal. It is the easiest type of loan one could avail of without any significant pre-requisites. You can go for reputable and credible banks like Axis bank to avail personal loans at affordable rates. They provide highly competitive interest rates and the maximum benefits possible depending on the borrower’s background and other specifications.
Don’t keep your dreams waiting any longer!