A personal loan is a type of loan that can be used to meet any personal requirement. Personal loans are meant for personal use only, which means you can use the money for any purpose. The funds can be used to pay off medical bills, wedding expenses, home renovation, etc. Here check how you can apply for best online personal loans:
Check Eligibility
Before you apply for a personal loan, it is important to check your eligibility. This can be done in two ways:
- Check with any bank or financial institution that you have an account with. They will be able to tell you if they offer personal loan products and how much money they can lend you.
- You can also check this on their website or call them on their helpline number provided on their site. Just fill in all the required details such as name and contact number, and they will let you know whether or not your application has been approved.
Personal Loan Interest Rates
The interest rates on a personal loan can vary, depending on many factors like the lender, credit score and other financial aspects.
However, it is always advisable to go with a lender who offers low-interest rates as compared to others. The lower the rate of interest you pay back over time, the less you will pay in total repayment amount.
Financial experts like Lantern by SoFi suggest, “Select the best offer for you and you can compare the rates, payments, and more.”
Calculate EMI
When you are applying for a personal loan, your lender will ask you to calculate the EMI. Here’s how:
- Go to your lender’s website and click on “Calculate EMI” or something similar in the menu.
- Enter the loan amount and tenure offered to you by your bank. If there is any interest rate change over time, enter it here as well (or leave it blank).
- Click on the “Calculate Loan” button at the last step of this process and see how many monthly installments add up to be.
Documents Required
- You must be a citizen of India with valid ID proof (Aadhaar Card, Driving License, Voter ID Card etc.).
- You should have an active bank account in your name to apply for a personal loan online.
- Nowadays, banks are asking for income proof from the applicant when applying for a personal loan online. This can be done by providing the latest salary slip or Form 16, which the employer issues after the end of every financial year.
- Banks will also ask you to provide address proof of where you have resided for at least three months in the last 2 years, along with utility bills like electricity bills and telephone bills as per proof of residence address provided by you during the loan application process.
Now that you know how to apply for a personal loan online, it’s time to get started. Before you do anything else, though, take a few minutes to learn about the different types of personal loans and figure out which one is best for your needs. Then go ahead and complete your simple application process by filling in all the necessary details on the next page!
