The Easy Steps To Take When Looking For A Personal Loan

The way to take a personal loan is not as complicated as people would think. Due to technological evolution, it is one of the easiest things to do without any issue. There are loan apps that offer instant cash loans in 1 hour in India if you know which loan app to choose to get it.

However, the bigger question is what steps you should take before you finally apply. Knowing these steps will make it easy to apply online.

The loan amount you need

The first easy step is to choose the loan amount you need. So, calculate the cost as per the purpose. The smallest loan you could get is Rs 1,000, and the maximum loan amount is Rs 40 lakhs. Depending upon the loan amount, Here are some lenders to choose from.

• HDFC offers a personal loan from Rs 50,000 to Rs 40 lakhs.

• ICICI offers personal loans up to Rs 20 lakh.

• LoanTap offers instant loans from Rs 50,000 to Rs 10 lakh.

• Bajaj Finserv offers personal loans up to Rs 25 lakhs.

• TATA capital offers the loan amount up to Rs 25 lakhs.

• Axis Bank offers personal loans up to Rs 15 lakh.

Comparing the different lender's offer

Now that you have chosen a specific loan amount, it is time to compare the offers. Here three things you have to keep in mind. The personal loan interest rate, the loan tenure, and the eligibility criteria. First, the rate of interest should be as low as possible. Getting the low rate depends upon the CIBIL score. Since a personal loan is an unsecured loan, it does not require collateral.

Because there is no need for collateral, it increases the risk. To assess the risk, a lender has to rely on the CIBIL score. The score ranges from 300 and 900. The higher is your score; the cheaper will be your personal loan interest rate. Negotiation will also help to a better rate.

The second thing is the loan tenure. Choosing a loan tenure is up to you at your convenience. The third thing is to look at the eligibility criteria. Every lender's criteria are going to be different from the last one. It is up to you to choose the best one. Here we will give an example of two lenders to understand better.

HDFC personal loan eligibility criteria

• A Borrower should be a salaried individual or self-employed professional.

• The borrower's age should be at least 21 years to apply.

• The salary should be at least Rs 20,000 per month.

• The applicant should have at least 2 years of work experience.

• The applicant should be working in the current organization for at least 1 year.

LoanTap personal loan eligibility criteria

• The applicant's age should be from 23 years to 58 years.

• The applicant should be an Indian resident.

• The applicant's minimum salary should be at least Rs 30,000 per month.

• The applicant should have a minimum of 2 years of work experience.
  

What documents will you need?

The next step is to check out what documents you will need to submit. The necessary documents required are the same, but they may depend on the lender.

• KYC documents ( Identity proof, Address proof)

• Bank statement

• Salary slips

• Passport size photographs

Apply for the loan

By now, you would find the lender for the personal loan. Choose it and then do instant loan apply online. As said before, it is not complicated.

The conclusion

I hope these four steps help you out in choosing the best lender. One more thing before you start searching for a creditor, read the loan agreement thoroughly before signing it. Read More: A simple, straightforward guide to PaySense personal loan ( PaySense personal loan, Best personal loan)