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5 factors should be considered before applying for a Personal Loan

Today, Loans have gained significant popularity. This is because their application processes have become relatively simple. Through a click, you can access different Loan options. By going over their features, you can choose one that satisfies your purpose. 

The most popular one is a Personal Loan. It is an Unsecured Loan that does not require any collateral and is easy to seek. You can avail of them to satisfy your personal financial objectives or during emergencies. But before you do, consider these factors to experience a smooth application process:

1. Bank in question

The bank you choose for your Loan matters. If you want to enjoy a seamless application process and instant disbursal, it is wise to go for a reputable banking partner. For this, go over the available options and customer reviews for clarity. Also, check the facilities the bank offers like a Banking app, customer support, etc. 

2. Eligibility requirements

Before you apply for Personal Loan, check your eligibility criteria. Most lenders only grant Loans to those between 21-60 years of age. So, ensure to fall under that age category. You should also be an Indian resident and citizen. To prove your identity, check the list of documents needed. Some of the most asked documents are your age and address proofs, salary slips, etc. 

Once you have gathered the enlisted documents, only then go ahead with the application process on your Banking app. 

3. Interest rates

Personal Loan interest rates get charged as a percentage of the amount borrowed. These rates depend on your Loan amount, creditworthiness, and other factors. Besides, there is also a processing fee. Ensure that you go through them to avoid inconvenience. That way, you sail through your Bank Personal Loan application process. 

4. EMI calculation

Equated monthly installments are fixed amounts that you pay your lender at fixed intervals. These enable you to repay your Loan on time and efficiently. While applying for the Loan, calculate the monthly EMI. For this, you need to consider the total Loan amount, tenure, and interest rates. 

You can also use a Personal Loan EMI Calculator. It is a free online tool that computes your EMI amount instantly based on the input you provide. 

5. Application form

After considering all the Loan aspects, duly fill out and sign the application form. You can either go to your lender’s branch or fill it out online. The latter is a more convenient way. The form includes personal information, mobile number, employment details, online Bank Account information, etc. You should also upload all relevant documents, as specified. 

Conclusion

A Personal Loan application takes time to get approved. If your documents are valid and you consider the mentioned factors, the disbursal should not take too long. 

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Disclaimer: The information in this article is provided for general education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. It is not intended to be and does not constitute financial, legal, tax or any other advice specific to you the user or anyone else. TurtleVerse does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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