We all have certain unexpected financial requirements coming up every now and then. And it is not possible for many of us to get money out of our savings account and fulfil everything. This is where a personal loan can rescue all of us.
If you’re new to this concept and don’t know how it works, read through this article. We’re going to help you with complete information on what is a personal loan and how you can apply for the same. Let’s begin!
What is a personal loan and how to apply for it?
A personal loan is a type of unsecured loan that you take out from a bank, credit union or other financial institution. A personal loan is also known as an unsecured loan because it does not require any collateral to secure the amount borrowed. It’s typically used for purchasing a car or paying for other large purchases. You can also use it to consolidate debt, pay off bills, or make home improvements. Moreover, a personal loan will have a fixed interest rate and is repaid over time.
How to get a personal loan: complete guide
Applying for a personal loan comes with a set of stages. Let’s discuss one by one:
Qualifying for a personal loan
To qualify for a personal loan, you need a good income source and employment history. Also, while providing you with the loan, the lender will consider your credit score. So, before applying, make sure that you hold an appropriate credit score. If eligible, these tools will provide a pre-qualification letter with simple instructions on how to apply for the loan.
Know how much you need to borrow
A personal loan is not a small amount of money. You need to know how much you can borrow and what the interest rate will be before you start applying for the loan. Also, before applying do make sure that you really need that money and that you’ll be able to repay the amount. Now, decide how much you need, and what amount would be able to fulfill your short-term financial requirement.
Check your credit score
A credit score is a number that represents your creditworthiness and shows how well you manage your debt. It’s based on information in your credit report, which includes your financial history with lenders. The better the number, the greater your chances will be to get approved for loans and other types of financing at lower interest rates.
Also, do keep your credit report ready. A credit report contains information about your credit history, such as how much money you owe and whether or not you pay bills on time. This information will help determine whether or not a lender approves or denies your application for a loan, line of credit or another type of financing product.
Even if you have low credit score there are various ways to improve your credit score.
Check your eligibility
Before you apply for a personal loan, you need to be sure that you will actually qualify for it. In order to do that, get in touch with the lender or visit the lender’s website to check if your profile is eligible for the loan. Common eligibility requirements are as follows:
1. The applicant should be an Indian citizen.
2. Applicant’s age must be between 21 to 60 years.
3. One must have an income source to repay the loan amount.
4. It is also important to meet the minimum income amount.
Documents required for a personal loan
To apply for a personal loan, you should have the following documents:
Address Proof: Driving license, Aadhaar Card, Voter ID
Identity Proof: PAN Card
Income Proof: Net-banking statement or 3 months bank e-statement.
Applying for a personal loan
Applying for a personal loan is very easy. You can apply online or through your mobile phone. Visit the lender’s website, check ‘how much personal loan can I get’ and just fill out the application form with all the required information and documents. Finally, submit it. The lender will review your application and decide within 24 hours. If you are eligible to get the funds, money will be transferred to your bank account as soon as possible so that you can use it anytime according to your needs.
Note: Before applying, compare the interest rates of the lender and only then submit the application.
Apply for a personal loan with Airtel Flexi Credit!
Now you can even apply for a personal loan with Airtel Flexi Credit! Get an instant loan, of up to Rs. 5 lakhs, with minimum documentation as well. What’s more – you do not even have to visit the bank. Simply provide the appropriate documents as needed, go through the KYC process. As soon as everything is checked, you will get your Airtel Flexi Credit loan amount deposited in your account.
To calculate your loan amount vs. EMI tenure, visit the personal loan EMI calculator page to get the complete overview.
Get your loan from Airtel Flexi Credit today, with the help of the Thanks UPI app. Download it right now!