Personal Loan Procedure

Personal Loan :- A personal loan is a personal loan that is offered to people who need money for a personal want or need. But what are the requirements for a personal loan? How can you apply for a personal loan? To help you with these questions, we created this personal loan guide to help you get started.

As you already know that it is an unsecured loan that is used to get quick fund assistance. You don't have to pledge any gold/asset as collateral to get funds from this loan. There are several banks and NBFCs (Non-Banking Financial Companies) that provide the facility of personal loans.

Borrowers have to repay the money they've borrowed along with the interest rate and within the loan tenure. Missing even a single installment can affect your credit repayment history. And in case the borrower can't repay the loan amount, then your credit score will decrease. And a bad credit score will make it impossible for you to get a loan next time.

Banks give customers the flexibility to use the amount they've borrowed freely. So they can use it for various purposes like :-

Debt consolidation :- You can use the money you get through a personal loan to repay your current debts, loans, and credit.

Home renovation :- If you're looking to renovate your house, then you can easily get funds by applying for an instant personal loan facility.

Refinancing :-You can use a personal loan to repay your existing loans. This process of using another loan to repay the current loan is called refinancing.

Medical Bills :- The pandemic has impacted our physical health a lot. So to cover your heavy medical bills, you can easily get funds through the personal loan facility.

Wedding :- It is a huge deal in India. You can't call it an Indian wedding until you've spent lakhs of money. So to meet all your expenses during this occasion, you can easily apply for a personal loan and get funds within a few days.

Vacations :- If you're using your savings to plan a vacation, then don't. You can instantly apply for a personal loan facility and repay the funds with an easy repayment option.

Miscellaneous expenses :- If you're facing problems managing your current expenses and bills, then you can apply for a personal loan and cover all your bills easily.

Personal Loan procedure :

You can apply for a personal loan using both online and offline facilities. So we've listed the entire process for both modes below :-

Online Mode :-

1. Firstly, you'll have to visit the bank's website and open the 'personal loan' page. There you'll have to read everything related to their loan facility.

2. Eligibility criteria play an important role in determining whether or not your application will be approved. So read the eligibility criteria carefully.

3. Suppose you fit into the eligibility criteria stated by the bank. Then you can move ahead with the application process.

4. Here you'll have to fill the application form and attach some KYC documents like identity proof, income proof, address proof, employment proof, etc.

5. After you've attached all the required documents and filled the form, click the 'submit button.

6. Bank will then review your application and check whether or not they should approve your application. The verification process will only take 2-5 business days. You can check your application status on Axis Bank personal loan status.

7. If your application has been approved, then the bank will make a document regarding interest rate, repayment tenure/structure, fees/charges, and penalties. You'll have to sign this 'terms and conditions' document.

8. After you've consented to all the terms and conditions stated in the document, the loan amount will be disbursed to the customer's bank account instantly.

Offline Mode :-

1. To apply for a personal loan in offline mode, you'll have to visit the bank's nearest branch.

2. Bank will then give you an application form, and you'll have to complete all the required details and attach your KYC documents.

3. After you're done with the documentation process, you can submit the documents.

4. Bank will then verify the documents and check your creditworthiness.

5. If your application is approved, then you'll have to sign terms and conditions documents.

6. After you've consented to the document and signed it, the loan amount will be disbursed to your bank account instantly.

Also read this: Types of Personal Loans and its Application