Securing a personal loan has become relatively easy in today's digital age. Conveniently available at attractive interest rates ranging from 10.85% to 24% per annum, you can avail of a personal loan with minimum documentation and instant approvals from the comfort of your home.  In this blog, we’ll walk you through the process of getting a personal loan online, the key benefits, and tips to improve your chances of approval.

What Is a Personal Loan?

A personal loan is a convenient financial tool that brings you a step closer to enhancing your asset portfolio. Easily accessible, it comes with specific eligibility criteria, repayment terms, and interest rates. A good credit score improves approval chances, though some lenders offer options for low-credit applicants. Once approved, funds are quickly disbursed. 

What Are The Benefits Of Personal Loan?

Here are some distinguishing benefits of availing a Personal Loan:

• Quick Approval: Ideally, Processing a personal loan takes 3 to 4 weeks. Additionally, if you have a strong credit history, your personal loan approval becomes much faster. 
• Collateral Free: Availing a personal loan does not require an individual to possess collateral, thus making it an easier option. 
• Minimal Documentation: Personal loans require minimal documentation. Additionally, the application process is kept simple, keeping in mind customers' needs and preferences. 

How To Get Personal Loan From Bank?

Follow the be; low steps to get a personal loan from your respective bank: 

• Step 1: Open the personal loan application form to your respective bank’s website.
• Step 2: Provide your mobile number and the OTP received on your phone
• Step 3: Fill out the application form with basic loan details. 
• Step 4: Click 'Proceed' and visit the loan selection page.
• Step 5: Enter the loan amount you require. 
• Step 6: Select the loan repayment tenure and then further click on 'Proceed'.
• Step 7: Complete your KYC and then proceed to submit your application.

After following these steps, a bank representative will guide you through the remaining process. Once your documents are successfully verified, the required loan amount will be transferred to your bank account. 

Eligibility Criteria For Personal Loan

Understanding these requirements is crucial to securing a loan with favourable terms. Here are some eligibility criteria mandatory to meet for availing a personal loan:

• Must be an Indian citizen
• You must be an employee of a private company or any public sector undertaking, including central, state, or local bodies.
• You should be between 21 and 60 years old.
• You should be employed for at least two years with a minimum of 1 year of working experience with your current employer.
• Maintaining a CIBIL score of 685 and higher is a must 
• You should be either a self-employed or salaried individual 

Documents Required For Personal Loan

Banks require certain mandatory documents to verify identity, income, and creditworthiness when applying for a personal loan. Here are the documents you need to keep in hand for easy approval of the loan:

• KYC documents: Aadhaar/Passport/Driving License/Voter’s ID/Letter of National Population Register/NREGA employment card
• PAN Card
• ID card of the employee
• Piped gas bill
• Salary slips for the past 3 months
• Bank account statement for the last 3 months
• Pension order
• Letter of Allotment for accommodation issued by the employer
• Utility bills
• Municipal tax receipt
• Ration card
• Real-time images or photographs

Processing Fee For Personal Loan

Processing fees are generally levied by banks to process loan applications. These fees include the administrative costs incurred by the lender during loan approval. 

On the other hand, loan processing charges are calculated as a certain percentage of the loan amount paid during loan disbursal. The processing fee usually ranges between 0.05% and %. GCertainbanks also charge higher processing fees if the borrower fails to produce proof of income. 

In conclusion, opting for a personal loan is an easy method to enhance your asset portfolio. With adequate planning and research, you can learn how to get a personal loan online and enjoy the advantages right from the comfort of your home. 

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