Need a Personal Loan? Follow These 5 Simple Steps

All of us have faced an emergency at some point in time where we needed quick cash to meet important expenses. In such cases, quick and accessible funds are just what we need. While we do explore options like borrowing from friends, family, and colleagues, it can still be quite embarrassing to do so. To avoid such embarrassment, availing of a Personal Loan can be the perfect solution. A personal loan is an unsecured loan that can be used to take care of all your financial needs, repayable in monthly EMIs. These loans are an extremely convenient source of funds because there’s no collateral or excessive paperwork involved. You also receive the money almost instantly in your bank account.

Today, there are banks, NBFCs, and even apps that offer personal loans to you. If you’re looking to apply for a loan, you’d naturally want one from the best personal loan apps (also called money loan apps) or banks. You can get one in just five simple steps. Read on:

1. Figure Out the Loan Amount

This is the first thing you need to decide – how much money you need to comfortably meet your financial needs. Here, ‘financial need’ refers to the reason you need a personal loan in the first place. This could be anything, from consolidating credit card debt, taking care of a medical emergency to making a large purchase or planning a vacation. Make sure to borrow only what you require – nothing more, nothing less. Thorough research about all the possible costs associated with your financial need will help you here.

2. Check Your Eligibility

Whether it’s a bank, NBFC, or a money loan app, every lender has certain eligibility criteria in place that helps them decide who can apply for a personal loan. The lender that you’ve decided to go with will have one too. Having a good credit score does help, but it’s not the only factor. Your employer (certain lenders may not lend to self-employed individuals), age (your age during the maturity of the loan also matters), and net monthly income also matter. You also need to have certain documents readily available to you.

Check you Eligibility Here

3. Calculate Your Monthly EMIs

This is an important step that you need to perform before you apply for a loan. Today, since everybody prefers borrowing a personal loan online, every personal loan lender has an online presence (read: website) wherefrom you can apply for a loan. Another tool they have is a Personal Loan EMI Calculator, which is very handy in helping you calculate your monthly installments before applying for a loan. This will help you decide whether you can afford them or not, given your existing financial commitments.

4. Apply for a Loan

After having determined the loan amount you want to borrow, you can now apply for the same with your preferred lender. As long as you’re eligible for it and find the loan EMIs affordable, you should be fine. This usually involves visiting their website/ logging on to their mobile app and filling out an application form. You may need to enter basic personal information along with your income and employment details. Today, you can even apply for a personal loan via NetBanking, through an ATM, or even using a loan app on your phone. Of course, you first need to check if your lender offers these facilities in the first place.

5. Upload the Required Documents

While checking your eligibility for a personal loan, you will also come across the documents required, which are usually listed on your lender’s website. Usually, you’ll require a duly filled application form, your KYC documents, income proof, and a signed loan agreement. As income proof, you may be asked to submit your bank statements, IT returns, or salary slips.

In Conclusion

The above points are common to any lender when it comes to borrowing a personal loan. If you’re looking for a reliable personal loan provider that offers fast and hassle-free short-term funds, KreditBee is a good option you can consider. KreditBee offers personal loans up to Rs. 3 Lakhs, with no physical documentation required. All you need to do is download the KreditBee app, complete your profile, and leave the rest to us. If you wish to learn more about our personal loans, write to us at [email protected] or simply call +080 44 292 200.