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Tata Capital > Blog > Personal Use Loan > How to Apply for a Personal Loan in 5 Simple Steps?

Personal Use Loan

How to Apply for a Personal Loan in 5 Simple Steps?

How to Apply for a Personal Loan in 5 Simple Steps?

We all want to live life to the fullest. Who doesn’t want to go on international trips, host a lavish wedding, and receive the best education? However, the sky-high prices often act as a hurdle, keeping us from realising our dreams. But today, you can finance anything easily with the use of a personal loan.

These loans are unsecured, meaning you don’t have to pledge any collateral while availing them. Add to it, lenders allow you to apply for a personal loan online, thus making the entire process incredibly convenient. Due to digitised methods, you can peruse over the loan facilities online, select the right option and upload documents without hassle.

Additional Read: Can a Personal Loan Help you Upgrade your Lifestyle?

If you are planning to avail personal finance, here is a 5-step guide to help you do so.

Check your eligibility and requirements

The first and foremost step when applying for personal finance is to determine your monetary requirement. The amount required as well as personal loan interest rates will differ for a wedding, travel, education or home renovation.  Therefore get a clear estimate of the money you require so that you don’t end up over or under-borrowing.

After this, check whether you are eligible for personal finance from your selected lender. The eligibility criteria for a personal loan generally include's credit score, monthly income, age, etc.

Fill the application form

You will be given an application form by the lender which requires you to fill in personal details (like age, address), financial and employment details like your monthly income, place of work or details of the company for self-employed persons. This can be done both online and offline.

Select the loan amount and tenure

This is the most critical step while filling any loan application form, wherein the applicant selects and enters the desired amount details. Based on the applicant’s personal and financial info, credit score and outstanding debts (if any), the lender offers the appropriate repayment tenure and personal loan interest rate.

However, nowadays, applicants can precisely evaluate the rate of interest and EMI payable as per their income, using a personal loan EMI calculator online.

Submit documents

Certain documents like proof of identity, proof of residence, employment certificate and income documents are required to determine your personal loan eligibility. The documents needed may differ from one financial institution to another. You can submit these either online, offline or have a representative collect them from your residence.

Additional Read: How to Check if you are Eligible for a Personal Loan in 2020?

Approval of application

Whether applying for a personal loan for self-employed or salaried professional, the lender will approve your application only after proper verification of documents. After which, they will disburse the amount, if sanctioned, into your account within 3-5 working days.

Avail personal finance at Tata Capital

Tata Capital is one of the leading personal finance providers. Find customizable repayment tenures, low interest rates, and excellent after-sales service with us. To avail of a personal loan, apply on our website or give us a call today!

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