How to Apply for a Personal Loan

Is it easy to get a personal loan? Well, yes and no. On the one hand, there is less paperwork, since
the bank does not have to verify any asset as in the case of home loans. On the other hand, there
are stringent income criteria to qualify for personal loans. But once you make the grade it takes only
about three days for you to get a personal loan.

So, here goes a step-by-step break-up of the personal loan application process:

  • STEP 1: ENQUIRY WITH A FINANCIER:

    The first step is to get in touch with a lender. How do you know whom you should approach? You need to get in touch with as many lenders as possible and get them to make loan offers to you. Then negotiate with them to get the best interest rate. Check if there are any special offers.
    After you have got all the banks to make their offers to you, select your lender based on the information you have in front of you.

  • STEP 2: DOCUMENTS COLLECTION

    After you finalize your lender, the lender’s direct selling agent will visit you and collect documents supporting proof of income, residence proof, and identity. You may be required to produce copies of IT returns, salary slips, bank statements, ration card, passport, driving license, and other relevant documents. These requirements vary from lender to lender.

  • STEP 3: FIELD INVESTIGATION AGENCY REPRESENTATIVE VISIT

    After submitting the documents, a field investigator will visit your home to double check the facts provided in the documents, such as your place of residence, tenure at work place and so on. It is essential that you are present during this visit; otherwise the investigator could report that the facts you provided do not actually add up, thus forcing the lender to reject your loan application.

  • STEP 4: LOAN APPROVED

    After submitting the documents, a field investigator will visit your home to double check the facts provided in the documents, such as your place of residence, tenure at work place and so on. It is essential that you are present during this visit; otherwise the investigator could report that the facts you provided do not actually add up, thus forcing the lender to reject your loan application.

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