A step by step guide to understand the Personal Loan process
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21 MAY, 2020
A personal loan has emerged as a popular financial product in the country. It makes for a good resort when you need quick financial help to serve any purpose. From serving medical emergencies to fulfilling house renovation finances, this loan can be used for several purposes. If you are planning on applying for a personal loan, you may be concerned about the several steps involved in getting one. However, fret not as the process is very simple. All you have to do is follow the right steps.
Here is a step by step guide that helps you in the personal loan process:
Compare the available options – You do not take the first loan that you are offered. Compare the different offerings using several parameters such as the available loan amount, term or duration, processing, and other related fees, rate of interest, the total amount for repayment and terms and conditions.
Note the eligibility criteria – It is important to know whether you qualify for a loan. The lender will need you to meet the personal loan eligibility criteria that include employment status, credit score, income, residential status, age and more. Ensuring your eligibility before the application will prevent you from wasting time on a loan process that you do not qualify for.
Begin application – The application for a personal loan can be either done online or through the bank branch. You have to generate informative documents such as a personal identity, proof of income, tax identification number and history and address proof. Having the needed documents in place with your information readily available will help in smoothly making it through the application process.
Await loan approval –A loan is approved only after you have submitted all the sufficient information with the lender. You will then have to sign a contract that contains all the important details of your agreement such as the amount to be paid back, rate of interest and more.
Receive the loan funds – With a personal loan, the funds are handed over to you through a bank account that you provide to the lender. Many lenders also offer quick loan disbursal to pre-approved customers. You must then work on your plan to make repayments within the loan tenure period.
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