Personal Loans are used for many things, including a medical bill, debt consolidation, purchase of a new appliance, vacation, education and more. After borrowing a personal loan, you need to repay the money in EMIs, including the applied interest. Most Personal Loan schemes are unsecured, meaning they do not require any collateral, guarantor, or security for backup.
As far as applying for a Personal Loan online is concerned, aspiring borrowers have two options: the financial institution’s website or mobile app.
You can generally apply for a loan by providing basic personal and income details. The lenders will consider – age, income, employment, credit score, and outstanding debts to assess your eligibility and interest rate. This article will teach you a few crucial steps to get Personal Loan quick approval.
Calculate Personal Loan Eligibility
Qualifying for a Personal Loan involves several steps – and the first one is to ensure that it’s the right loan plan for you. For instance, if you want to borrow money to renovate your house, the loan should be enough to cover the renovation cost.
Although moneylenders determine the loan amount based on – income, credit history, and repayment capacity, be sure to compare loan schemes and get the best offer.
You can calculate Personal Loan eligibility using an eligibility calculator and apply for an appropriate loan plan.
Things to Consider Before Personal Loan Application
Before shopping around for the best Personal Loan offers, here are a few essential things to consider:
- Eligibility: Various loan companies like Fullerton India have different eligibility conditions that you need to fulfill to qualify. These include – age, income, employment and credit rating. Check the particular NBFC’s eligibility criteria and ensure fulfilling them before applying to get Personal Loan quick approval.
- Documentation Requirements: Eligible applicants must provide a few necessary documents to support their details. These include – address, income, and identity proof. Check the required documents’ availability before applying to accelerate the loan process.
- Interest Rate: The interest rate is a crucial parameter that significantly affects your EMI and total loan cost. The higher the interest rate, the costlier the loan will be. Aspiring borrowers with a good income and decent credit score have higher chances of getting the lowest interest rate on Personal Loans.
- Repayment Capacity: Decide on a loan amount you can easily repay within the loan tenure. An individual’s repayment capacity depends on income and financial obligations. Use Fullerton India’s eligibility calculator to calculate Personal Loan eligibility and apply for an adequate loan amount.
- Loan EMIs: Use a Personal Loan EMI calculator to calculate the monthly EMI amount for the loan. Ideally, the loan EMI should not consume more than 65% of the applicant’s monthly income. You can easily adjust it into your monthly budget without straining your finances.
Fulfill the Documentation Requirements
Each NBFC has different documentation requirements for Personal Loan applications. These often include the following:
- Identity proof, like an Aadhaar card, voter ID, passport, and driving license
- Address proof, like an Aadhaar card, voter ID, passport, driving license, rent agreement, ration card, and utility bill
- Income proof, like bank statements, salary slips, ITR, Form 16, etc.
Decide on the Loan Amount
Remember that when an individual borrows money, they don’t just repay the principal amount. They also pay interest on the money they borrowed. Paying interest on loan amount that you do not use makes no sense.
However, if you get a lower loan amount than required, eventually, you would seek other expensive funding sources at the last minute. Therefore, the loan amount should be sufficient to cover the intended expense but not more than your repayment capacity.
Check the Credit Score
Personal Loan lenders rely heavily on the applicant’s creditworthiness. It is advised to check credit scores and obtain the latest credit reports before applying. As checking your credit score is a soft inquiry, it does not impact your credit score. If your score is between 750 and 900, the chances of getting quick approval at better interest rates are high.
Complete the Application Process
Visit the selected NBFCs website and fill out their online application form with personal and financial details. Scan and upload the necessary documents to complete the application process. Double-check the details before hitting the submit button and wait for the verification process to complete.
Once the loan company verifies all details and documents, they send a loan offer with the proposed loan amount, interest rate, and loan tenure. When you accept the loan offer, they disburse it directly into your bank account shortly after approval.
Those with excellent credit scores find Personal Loans a reasonably inexpensive way to cover their costs. A Personal Loan’s quick approval depends on the applicant’s creditworthiness, loan purpose, and repayment capacity. After approval and disbursal, borrowers must repay it in EMIs over a set term of up to 60 months.
