When you need extra money for family and personal emergencies such as a wedding or hospitalisation, you might decide to go for a personal loan. Personal loans are a convenient way of getting additional funding because they require fewer documents and are processed faster than any other retail loan.
There are several ways to apply for a personal loan:
If the personal loan applicant has an existing relationship with the financial lender, he/she can apply for a personal loan via his/her net banking account and could possibly be eligible for a pre-approval. For other customers, they can apply for a personal loan online by following the steps mentioned below:
Listed below is the process of applying for a personal loan at the branch of the financial lender:
You can leave a request for personal loan with the bank through an email or at the customer service centre of the bank. The bank will review your eligibility and contact you to take the process further.
Nowadays you can apply for personal loan via ATM kiosks as well. Once you raise a request the bank personnel will contact you.
The process of sanctioning of a personal loan is simpler than property loans such as home loan and car loan. This is because, in case of property loans, the bank has to verify not just your financial information, but also the credibility and eligibility of the asset that you are purchasing with the loan amount. For personal loan, you are the collateral security yourself, so the bank has to do a background verification only on you.
The two key elements in ensuring approval for your personal loan application are to maintain a credit score of 750 or more, and to ensure that you provide all the documents sought by the bank. Once the loan is availed, the onus of repayment lies with you and the bank can levy penal interest on outstanding balance if EMI is not paid on time. If you miss several EMIs, the bank can also take legal action.
Personal loan applicants can check the status of their application on the website of the lender, by calling the customer care unit or at the branch of the lender. To check their personal loan status, the applicant will have to use the personal loan application reference number, registered mobile number, and date of birth. That said, when the lender approves the personal loan, the same will be communicated via SMS, email or on his/her registered mobile number.
The financial lender would have rejected your personal loan application possibly because you did not meet the eligibility criteria with regard to the minimum income requirement, age, work experience, CIBIL score, past repayment history, etc.
No, you should not make multiple personal loan applications with a number of lenders as each application rejection will affect your credit score. Once you have checked your eligibility, make an application with just one lender.
No, the personal loan application form can be downloaded or procured at the bank branch for free.
No, the processing fee will be same if you apply for a personal loan online or offline.
Yes, if you have an existing relationship with the bank and are a pre-approved customer, the personal loan will be disbursed almost immediately.
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