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How to Apply for a Personal Loan?

personal loan

Personal loans are very handy. If you need cash urgently and don’t have any other resources to bank upon, a personal loan can bail you out. A personal loan is an unsecured loan. You can get it without collateral, provided you have a good credit history and a healthy credit score. Your credit score and the personal loan interest rate are inversely proportional, so try to make a good credit score if you wish to get a personal loan. But how does one get a personal loan? Let’s find out.

Assess your needs:
Start off by assessing your financial requirement. Why do you need the loan? Is it to pay for a medical emergency? Are you falling short on your wedding expenses? Make a budget and see how much money is needed. While you may be entitled to get a higher loan amount, borrow only as much as you need. This will help you to repay the loan easily and quickly.

Do your research:
Once you know how much you need, start comparing the loan providers. Most of the leading Indian banks, as well as the NBFCs, offer personal loans. The interest rates and clauses differ between the lenders and so, you must compare to see who is offering you the best deal. Also, look at the repayment options and then select the best loan provider from whom you wish to take the personal loan.

Apply for the loan:
It is very simple to apply for a personal loan these days. All you have to do is go online and fill in a very short form. The documentation is minimal too and you just have to provide some basic KYC documents, along with your financial records. The application process only takes a couple of minutes and you can do it at your own convenience from the comforts of your own house or office.

If you prefer the old school method, you can physically go to the branch of the bank or NBFC and apply for a personal loan. Fill in the form and submit it, along with physical copies of the documents needed.

Wait for an approval 
The modern-day loan providers are very quick in their turnaround times. If your personal loan application is approved, you will get the loan amount transferred to your bank account within 48 hours. You can use the amount in any way you wish as the lender will not ask you to explain how you spent the money, as long as you pay it back on time and don’t miss any EMI.

The final word:
As you can clearly see from the points mentioned above, getting a personal loan has become very simple nowadays. But remember to take a personal loan only if you need it very badly. A personal loan is quite expensive. Speak to your bank and your financial advisor and explore your options. Once you find a good one, apply online and get the plan instantly.

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