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How to Apply for a Loan

How to Apply for a Loan

Depending on the provider or the bank where you apply for a loan, there might be a slight difference in requirement of documentation.

Life comes with a variety of situations, some avoidable and many unavoidable. While purists will say they don’t want to take loans since they don’t want any debt on their head, availing a loan might actually be useful in many scenarios. Be it from buying that four wheeler you want, paying off wedding expenses, going on that dream trip, or in adverse situations such as medical emergencies; availing a personal loan might be quite handy. Below are the simple steps that you need to take before you avail a personal loan.

Decide the amount required:

While it majorly depends on the kind of expense you are planning to cover with the loan, it will also depend on your income. Make sure you have the capability to pay it off every month after availing the loan. You can also use an online personal loan calculator that will calculate the EMI for you.

Check your Credit:

Your credit history and credit score that you have accumulated over the years will come into play when you apply for a loan. The better the score, the better the chances of your loan getting approved, and the higher the amount you will qualify for.

Do your research:

Do not go by word of mouth when it comes to applying for loans. Some plan that may be suitable for a friend or colleague may not at all be good for you and your own needs. Check online, take stock of the different plans available, calculate, compare, and then apply for a loan.

Get all your documents in place:

Depending on the provider or the bank where you apply for a loan, there might be a slight difference in requirement of documentation. Generally it is a standardized list of documents that are required. Make sure you go through it, and provide all of them without fail, or else your loan application might be rejected, which also affects your chances of getting it approved the next time you apply.

Reach out to an expert:

In many cases, online research and friends might not be the best way to go about researching. Let that be your primary mode of research. But while applying for a loan, it is highly recommended that you approach the bank or a financial agent for a face-to-face conversation, and learn all that you need to before applying for one.

Choose the best suited plan

After all of the above, once you have your needs, finances and documents in place, you can fill up the form and apply for a loan. Depending on your income, age, and proper documentation, usually loans get approved in 24-48 hours.

first published:May 13, 2019, 12:13 IST