4 MinsSept 1, 2021
Mohammed Reza is in urgent need of Rs 2 lakh to pay his son’s school fees. He had limited options to get his hands on this kind of cash, and he turned to his bank for the same. Reza was surprised when he learned that he was pre-approved
for a personal loan of up to Rs 5 lakh, and it could be disbursed to him in 72 working hours.
A personal loan is an unsecured loan and is one of the easiest ones to get if you are pre-qualified. It involves minimal documentation, and if you are pre-qualified, then the process
is even more straightforward. Let's take a look at the whole process end-to-end.
Getting a personal loan involves four steps:
- Loan application and eligibility: Today, Reza can apply for a loan either online or offline. It is preferable to apply online because it is quicker and safer (no need for physical interaction with
anyone outside). An online application is approved within minutes with some lenders. If Reza applies for it offline, it might take longer.
- Lender meeting and discussion: Once the application has gone through to the next stage; the lender sends someone to meet the applicant. This usually takes place at the office or home of the applicant. Questions asked
pertain to the stability of employment and regular income. Once the meeting is done, the application is either approved or rejected. If one applies online, sometimes a bank representative asks questions over the phone or video call. If
you are pre-approved, a meeting generally doesn't occur, and you skip straight to step three.
[Also Read: How to get an Axis Bank Personal Loan in minutes]
- Documentation: After approval, documents like income proof, employment details, bank statements, age proof, address proof (Aadhaar card/passport), and PAN card must be submitted to the bank. If all the documents match
the approved criteria, the application proceeds to the next stage. If the details don't match, the loan application process can be delayed or even rejected.
- Approval and disbursement: Once all the documents are submitted, verified and approved, the personal loan is disbursed. Online applications generally complete the process within days. An offline process might take two
weeks to get done. A pre-approved applicant can get the loan disbursed into their account within 72 hours if all documentation is in order.
When Reza applies for the personal loan, he should make sure that his documentation is in order. If you are not pre-approved like Reza, apart from your documents, check your credit score. Ensure that your CIBIL is over 700. If it is below 700,
you will find it tough to get a personal loan, or you might have to pay a higher rate of interest for the same.
Applying online for a personal loan makes the process quicker and simpler.
Axis Bank offers a range of Personal Loans tailored to meet the needs of most borrowers. You can easily calculate personal loan EMI with the help of Axis Bank personal loan emi calculator.
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