Applying for personal loans is a simple process with fast clearance and minimal documents for the approval of the loans. Loans can be processed as instantly as within few minutes in the case of online applications. The banks charge interest rates starting from 11% to as high as 24%. Some banks even charge interest rates as low as 9% onwards. The applicant can avail of loans through online mode or else through the offline mode through bank branches. The application process for the loans is very simple and easy. The borrowers usually utilize the funds for medical purposes, marriage purposes, home renovation purposes, electronic goods, and travel purposes. The borrower can also make multiple uses of the loans obtained. The bank only funds the loan in case of submission of proper documents and a good CIBIL score. The credit score plays a critical part in the approval process of the bank. An appropriate survey of the lenders should be done before obtaining loans from the borrower. Some lenders may charge far higher interest rates and processing fees than some other lenders.
The misleading terms and conditions can lead to higher repayment charges to be paid by the borrower. Thus the borrower should verify the terms & conditions of the borrower before the approval of the loans. The terms & conditions should be told to modify if the terms & conditions are found totally in favor of the borrower. If the lender refuses to change any unfavorable conditions, then a new lender loan should be obtained from a new lender. The banks also charge penalties for the pre-payment of the personal loans, which the borrower should be aware of. The equated monthly installments can be provided for the tenure of up to 5-6 years by the bank, within which the loan amount should be repaid to the bank. The higher the tenure lower is the monthly installments being charged by the borrower.
Following is the process of applying for the Personal Loans
- Fill up the application form either offline or else online mode.
- Enter the pan card or Aadhar card details in the given section in online mode. Fill up all the details in the form, whether online or else offline.
- Attach the necessary documents Xerox copies in offline mode or else upload the original scanned documents online on the website.
- Upload the digital signature online or else, in offline mode, sign wherever required on the application form.
- Also, upload the passport size photograph or paste the photograph on the form in offline mode.
- Read all the terms & conditions of the loans before approving the loan
- Check for the eligibility of the personal loan based on the salary of the applicant.
- Click on the proceed button in case of the online mode or submit the form along with the necessary documents & passport size photograph to the bank employee.
- Bank may usually clear the loan within 48 hours of the loan approval.
- After the sanctioned amount is credited to the bank account thus, the borrower is free to spend the money wherever required.
Reasons for the rejection of loans:
- If the CIBIL score of the borrower is less than 700 points, then, in that case, the CIBIL score is considered a low score; thus, the loans can be rejected by the borrower.
- If improper documents are attached or uploaded in a file.
- If the borrower is already running into debt, then, in that case, the loans may be rejected.
- If the salary of the applicant is found to be too low for the eligibility of the loans.
Thus, the process of application is very easy and simple for the application of personal loans. In the case of having a proper credit score and having appropriate documents, the borrower can easily get loans approved. The borrower can avail of the loans up to the maximum amount of Rs.25 lakh depending on the applicant’s eligibility base