Applying for a personal loan was an arduous process, but today it is a simplified process that does not take much time. If you’re looking for a personal loan, here is what you need to know about the stages of personal loan online processing in India.
First, let us talk a little about the offline processes. You can still walk into a lender’s branch and enquire about the personal loan interest rates, fill out the loan application form, and the lender will respond to you after the appropriate amount of time. You can also call the lender or email them your request. Beyond this, the steps involved in any personal loan application, whether you’re applying for a personal loan online or not, are similar.
However, the quickest and easiest way to apply today is to apply for a personal loan online. If you seek a personal loan from a lender that you bank with, you can look for the relevant tab in your smartphone application or Internet banking. If you don’t (or even if you do), the procedure is as follows:
- Go to the lender’s website
- Look for the ‘loans’ section
- Click on ‘personal loans’
This section should give you more information, like the range of amounts it offers personal loans for, personal loan interest rates, and repayment tenure range.
- Look for useful tools
Look for a personal loan EMI calculator. This tells you how much your personal loan EMI will work out to be for a given principal amount and rate of interest. This is very useful at the planning stage because it will allow you to fine-tune your EMI in the planning stage before you apply for the loan. Applying for a loan multiple times in quick succession can be bad for your credit score, so this is a good tool to use to avoid that.
- Have all the documents ready
If your credit score makes you eligible for the loan, the lender will require certain documentation. This typically includes:
- Proof of employment
The lender looks for steady employment, so that is a good sign if you have been continuously employed for over a year, preferably at a single job.
- Bank statement/salary slip
Lenders will usually ask for the last three months’ bank statements or salary slips because they want to know your in-hand income and what percentage of your total income your personal loan EMI will occupy. If the EMI is higher than 50 percent of your income, your odds of the personal loan getting approved drops.
- ID proof
Any government-issued ID is required, such as a driver’s licence, PAN card, Voter’s ID, passport, or Aadhaar card.
- Address proof
Again, government-issued ID proofs are eligible, including driver’s licence, passport, Aadhaar card, and voter ID. In addition, a ration card or utility bills like the electricity bill (if it has your name on it) are also eligible.
- Up to three passport-size photographs.
You will have to scan and upload these documents if you have them in physical form, so please have them scanned and ready for upload before you begin the application process.
- Submit your documents
Once you’ve decided on your lender, loan amount, and tenure; you can submit your documents on the lender’s website itself. Approval for the loan can take from a few minutes to a few hours.
- Disbursal of the funds
This can happen in as little as 30 minutes, but some lenders can take up to three working days.
Applying for a personal loan online today is a straightforward process from start to finish, and the funds can be in your account in as little as 30 minutes from the time you submit the required documentation, depending upon the applicant’s eligibility.