One of the scariest things in life is that financial emergencies can come unannounced. While it is advisable to save some money as an emergency fund, there can be situations where you might not end up saving enough amount of money. However, thanks to personal loans, you will be to handle your financial emergency with ease.
If you are a beginner who doesn’t know how to apply for a personal loan, don’t worry! We have curated a helpful guide for your better understanding.
A personal loan can be defined as an unsecured consumer loan that you can use for different purposes such as a holiday trip, buying new furniture, renovating a house, or a medical emergency.
You can choose a personal loan at a fixed rate of interest. One of the thumb rules to follow when applying for a personal loan is to clearly define your purpose, that is, why you need it. This way, you can carefully formulate a repayment schedule and follow it diligently to pay off your debts.
How to Apply for a Personal Loan?
When you require extra money for family and personal emergencies such as a wedding or hospitalisation, a personal loan can be the best option. Personal loans are convenient for getting additional funding because they require fewer documents and are processed faster compared to other types of loans.
Broadly speaking you can apply for a personal loan in 2 ways:
- Personal Loan Application Process Online
- Personal Loan Application Process Offline
- Personal Loan Application Process Online
Assuming you have an existing relationship with the bank chosen for personal loan application. You can directly apply for a personal loan via your net banking account and may even be eligible for a pre-approved loan.
For a hassle-free experience, you can apply for a personal loan online. The steps generally involved for this have been mentioned below:
- As an initial step, you have to visit the official website of your bank.
- In the personal loan application form, enter your personal details and submit them to your bank.
- The bank will carefully analyse and assess your eligibility and request the submission of required KYC documents and income documents.
- In case you are found eligible, the bank will disburse the loan amount to your bank account.
- Personal Loan Application Process Offline
For the offline process, mentioned below are the steps you need to follow:
- You can visit the nearest branch of your bank.
- Fill up the personal loan application form and enter all the required details.
- Submit the relevant documents you can use as your identity, residential, income, and age proof.
- After you have submitted all the supporting documents, the bank will verify those documents and check your eligibility.
- Once successfully verified, the loan amount will be transferred to your bank account.
Personal Loan Tips
Applying for a personal loan has become relatively easy; however, you need to remember a few things while applying for a personal loan. So here is a list of some handy tips which you can keep in mind when looking for a personal loan:
- Do Your Research
Before you take a personal loan, do some research. Don’t go for the first bank that approaches you with a personal loan offer. Look around and find the financial institutions that provide you with attractive personal loan interest rates with better terms and conditions.
- Compare Interest-Rates
Before taking a personal loan, check with several banks to see what interest rates are being offered. This way, you can find out which bank is offering the lowest rate of interest.
- Check Your Eligibility
Before applying for a personal loan, check with your bank and determine whether or not you are eligible for it, especially when it comes to your income and employment.
- Double Check Your Credit Report
Before opting for a personal loan, make sure that you have carefully checked your credit report’s content.
You can take a personal loan from reliable financial institutions like Axis Bank with minimal documentation and speedy approvals. You can seamlessly transfer your existing high-interest personal loan to Axis Bank as well.
With quick approval on your loan, give your dreams the wings to fly!