Personal Loan

How can one apply for a personal loan?

• Step 1

  Evaluate your needs to know the exact loan amount you need.

• Step 2

  Take into account any existing loan or credit card dues that you may currently be repaying, as this will determine the EMI you can afford to pay. Use the Personal Loan Eligibility Calculator to understand how much you can repay in a month.

• Step 3

  Check the bank’s eligibility conditions to know if your income and employment (the company you work for) will qualify

• Step 4

  Check the interest rate offered by the bank. Use the Personal Loan EMI calculator to find out how much your monthly outgo will be.

• Step 5

  If you are an existing customer you can apply for the loan on the bank’s mobile app or through your internet banking account. If you are a new customer you can download the application from the bank’s website or get it at the branch.

• Step 6

  Provide documents for KYC, address proof and income proof along with the application form, along with the cheque for the processing charge

• Step 7

  The bank will verify the documents, give you the loan sanction and approve the amount based on your eligibility. This will be followed by the signing of the agreement and the Standing Instruction (SI) Request/ECS Forms. Once this is done the funds will be disbursed to your account.

• Step 8

  The amount is then credited to your account. The entire process may take upto 30 days.

Tips to keep in mind while applying for a personal loan

• First try the bank where you have a relationship, such as a salary account, home loan, car loan, etc, as the KYC process will be easier and faster.
• Compare personal loan interest rates, processing charges, the penalty for pre-payment/foreclosure, etc. All these charges will add up to your cost. A bank that offers a lower interest rate may charge a higher processing charge or penalty for foreclosure.
• Try to achieve and maintain a high credit score as that could improve the chances of your loan request getting approved. Remember, this is only of the conditions for eligibility. The bank will evaluate it along with other conditions while reviewing your loan application.
• If you have other loans ensure the repayments are on time. This too could improve your chances of securing the loan.