Steps Involved in Personal Loan Application Process
No matter how well you plan your expenses, unexpected financial emergencies can always catch you off-guard. To take care of your immediate financial requirements, these days, you can easily apply for personal loans. Unlike a home loan or a car loan, personal loans are much simpler to apply for. They are not just easily approved, but also come with flexible repayment options. Worried about getting a personal loan being a small business owner? You can be at ease because Tata Capital also offers personal loans for self-employed individuals.
Before you go through the steps involved in the application process, it’s essential to check if you are eligible for a loan. The personal loan eligibility criteria listed below remains the same for salaried employees as well as those who are self-employed:
- The age of the loan applicant must be between 22 to 58 years.
- He/she must have a monthly income of at least Rs.15,000.
- He/she must have at least one year of work experience.
How to apply for personal loan in four simple steps
1. Online application form:
You can apply for a personal loan online without even visiting a financial institution in person. All you need to do is visit the respective financial institution’s website and fill out the online application form that will include your personal and professional details.
2. Document submission:
To avail a personal loan, you’d be required to upload scanned copies of the following documents along with your online application:
- Photo ID proof: Voter ID/Passport/Driving License/Aadhaar Card
- Income proof: Bank statements of the last six months
- Salary slips: Salary slips for the last three months
- Address proof: Ration Card/Electricity Bill/Passport
- Employment certificate: Letter certifying a year of continuous employment
3. Verification process:
Once you’ve uploaded all the necessary documents successfully, the bank or NBFC initiates a verification process of the documents and conducts a background check on your personal and professional information.
4. Loan approval:
If no discrepancies or anomalies are found in your submitted documents, application, and credit history, your personal loan application is sent to the final stage of approval. This is when the approved personal loan interest rates and loan tenure are shared with you for acknowledgment.
In case you’re not eligible for a personal loan, here are a few ways to improve your eligibility:
- Try to pay off your existing loans on time.
- Maintain a CIBIL score above 750.
- Avoid applying for multiple loans at the same time as it can decrease your creditworthiness.
- Opt for a longer tenure of repayment. It will allow you to disburse the total due amount over a longer period.
- If you have a spouse or parent with a relatively good credit score, add them as a co-borrower. This could boost your loan eligibility.
You can also use a personal loan EMI calculator to get a fair idea of the monthly EMI you will need to pay.
If you are seeking a reputable loan provider, look no further than Tata Capital. Reach out to Tata Capital to avail a personal loan with several benefits and bid adieu to your financial woes.