How To Get A Personal Loan & What Documents You Need

Thinking about taking a trip abroad or maybe organising the ideal wedding? Make use of a personal loan to realise your goals. A personal loan typically does not demand collateral or security and has flexible repayment periods. Here are the six steps for obtaining a personal loan. We’ve got all the information you need, including what paperwork is needed and how to apply for a personal loan:

Step 1: Determine what you need

Determine your requirement for a personal loan and the amount you require. You might require a loan, for instance, to pay for your wedding or to repair your house.

Step 2: Verify your eligibility

Once you are aware of your needs, you should determine your eligibility. To find out how much you can borrow as a personal loan, go to the loan provider’s website and use the personal loan eligibility calculator.

Step 3: Verify your credit report

Most lenders will run a credit check on you to assess your likelihood of repaying your loan. Even though some Internet lenders have begun to consider alternative credit information, they will normally still consider your credit score.

You need at least a fair credit score, which is normally between 580 and 669, to qualify for the finest personal loans. However, you’ll have the best chances of being authorised with a reasonable interest rate if your credit score is good or exceptional and is above 670.

If you have a low credit score for some reason, you may still be able to get a loan. You should work on your credit history first if you want to apply for a loan and if you think the interest rates and fees are too high.

Step 4: Figure out EMIs

If you want to estimate how much you’ll have to pay back on your loan each month, you may use an EMI calculator to help you out. Using a tool like a personal loan EMI calculator, you may adjust the loan’s interest rate and term to best suit your budget. Personal loans from today’s financial institutions come with affordable monthly payments.

Step 5: Visit the bank

You can visit the bank branch for offline documentation. A personal loan from the bank can also be made through several other channels, including net banking.

Step 6: Submit the paperwork

Next, learn what proofs are needed to secure a personal loan. You’ll typically need to provide evidence of your identity, residency, and income (such as pay stubs, bank statements or tax returns). Give the bank your duplicate personal loan paperwork.

Patiently anticipate the arrival of the money in your account. Loans accepted are typically disbursed within seconds to customers and within hours to non-customers.

That’s it; in only six simple measures, you can secure a personal loan! So, what are you waiting for? Get a personal loan today!

There is a wide range of interest rates for personal loans. The interest rate on your loan will be determined by several factors, including the loan amount you request, your credit history, and the time you take to pay it back. Your personal loan’s interest rate can be cut if you continue to have a strong credit score and solid working connection with your lending institution.

Why Might You Need a Personal Loan?

To what ends can one take out a private loan? There are few restrictions on how a personal loan can be used because it does not require collateral like a car or a home loan. It has a wide range of potential applications, including debt consolidation (whether from other loans or credit cards), making large purchases that require a large amount of money upfront, and emergencies.

It can’t be used for gambling or buying stocks on the speculative market. Personal loans are frequently used to cover unexpected costs in areas such as education and travel and for large purchases like furniture, automobiles and home appliances. If the rate of interest on a personal loan is lower than the rate on a car loan, it can be used to purchase a vehicle. Therefore, a personal loan can be useful for many purposes, including covering both anticipated and unexpected costs.

Documents Required To Apply For Personal Loan

To get approved for a personal loan, you’ll need to provide documents that banks and other financial institutions often need. What you’ll need to apply with can vary from one lender to another. The lending institution may request extra paperwork after you submit your application. You may be asked to provide supporting documentation, such as a copy of your driver’s license, a recent pay stub, or proof of residency.

If additional paperwork is required from you, the lender will let you know whom to send it to and what it is. The quicker you can offer the details, the quicker a decision can be made.

If more information is needed, you should be ready to provide it during the application process. You can speed up the application process by having your W-2s, salary stubs, proof of residency, driver’s license information, and other required documents on hand. To acquire a rapid decision from your lender, it’s important to submit all required paperwork as soon as possible.

You’ll need the following documents for personal loans:

Requirements	Salaried individuals	Self-employed
Identity proof	Passport, Voter’s ID, Driving License, or PAN Card	Passport, Voter’s ID, Driving License, or PAN Card
Residence proof	Passport or utility bills	Passport or utility bills
Income proof	Bank statement of salary account for the past two years	Current and prior year’s audited financial statements

These are the items a lender will require to approve a personal loan for an NRI applicant:

• Visa and passport photocopy copy.
• The HR department’s or your official email address.
• Pay stubs and a pay certificate.
• Documentation showing 6 months of NRO/NRE account activity.
• Documentation of your person, your residence, your income, and your assets.
• Pictures of you and your guarantors taken within the past year in passport size.

Conclusion

Want to apply for a personal loan? You can begin right now by contacting Piramal Finance. Finding the right personal loan product can be difficult because there are many lenders to select from. Get in touch with Piramal, and our experts will help you get a personal loan with the best interest rates in minutes.