Loan is a debt received by a person, from an individual or an organisation, for a certain amount of interest rate. This loan is repayable after a specific time period, till then the individual who has received the loan, should pay his monthly interest without fail. Within the mentioned time period, it is necessary for the borrower to pay the principal loan amount, to the lender. Loan is of two types, Secure loan and unsecure loan. In Secure loan, the borrower needs to be submit asset document, that is valued equal to the loan amount received by him. In unsecure loan, it is not necessary for an individual to submit any asset document.
Personal loan is considered to be a small loan, that is applied by an individual for meeting his emergency needs. For receiving this personal loan from any banks, it is compulsory for an individual to open an account in the specific organization. Once he has opened an account and he is having his monthly salary deposited in the specific account, then he will be qualified for personal loan. This is also considered to be an unsecured loan, where bank just asks for the salary slips of the individual and no need for submitting any additional asset document. This loan is comparatively easy to get, since this does not involve many paper works.
Step by Step Procedure for Applying for a Personal Loan:
- Step 1: Initially, you have to analyse the eligibility criteria in different organisations and which is best suited for you and how much is amount you can receive, with this criteria, should be worked out.
- Step 2: Following this, you have to consult as many organisations as possible, before applying for a loan. You have to decide based on the factors like interest rate, duration given to repay the debt, etc. Select the organisations, which you think is well suited for you. Once you decide that, visit the organisations and try pursuing them for providing loan in reduced interest rate.
- Step 3: You have to enquire about the documents that need to be submitted. Since this personal loan can be applied through online and offline procedure, the documentation procedure varies with each and every organisation.
- Step 3a: If you applying for a loan offline, then you have to visit the organisation and you have to fill out the form and submit the required proof copies along with your passport size photograph.
- Step 3b: If you are applying for a loan online, then agents from the organisation visit your home and collect the proofs. Through online you can apply for a loan in the comfort of your home.
- Step 4: Once you submit your documents, you will be visited by a field investigation agency representative, in order to double check the facts that are provided by you. This procedure is followed only in few organisations. When they find any false details provided by you, then they have the power to reject your loan application.
- Step 5: After verification procedure, your loan amount will be sanctioned and you will receive the amount in the bank account, mentioned by you or you will also receive Demand drafts or cheques for the specific amount.
Documents that can be submitted for Proof:
These are the following documents, that will be submitted along with the application for loan.
- Salary Slips
- Aadhaar Card
- Ration Card
- Driving License
- IT Returns
- Degree Certificate
- Landline Bills
- Electricity Bills
You can always repay the principal amount, before the specified time period. Once you are able to afford the loan, you can close the loan, instead of paying the interest each and every month. This is considered to be one of the easiest received loans compared to car loans and home loans.