A Step-by-step guide to submitting your Personal Loan application online

Individuals, whether salaried professionals or business owners, may take a Personal Loan to meet their financial needs. Unlike other bank loans, which serve a fixed purpose, a Personal Loan can be used to cover a variety of expenses such as vacations, medical emergencies, home renovations and weddings.

Various banks and financial institutions offer lucrative Personal Loan interest rates to attract customers. However, for most individuals, understanding the Personal Loan application process can be daunting. Therefore, in this guide, we will understand the process of submitting the Personal Loan application.

Process of submitting a Personal Loan application

Submitting a Personal Loan application is easy and hassle-free. Banks allow applicants to submit applications online from the comfort of their homes. Here is how you can submit the application online.

Step 1: Evaluate or check eligibility

Before starting the Personal Loan application process, you first need to verify if you meet the lender’s eligibility criteria. The eligibility criteria are generally available on their website.

Step 2: Gather all necessary documents

You also need to gather all the necessary documents required to submit the Personal Loan application form.

Step 3: Fill out the application form

After that, visit the lender’s website and click on the "Personal Loan” option. Fill out the application form correctly.

Step 4: Submit the documents

Once done filling the application form, submit the requested documents such as identity proof, address proof, etc., on the portal.

Step 5: Complete the E-KYC process

Applicants also need to go through the KYC process. The bank representative will connect with the loan applicant via video call to verify their identity.

Step 6: Review loan terms and conditions

After completing the E-KYC process, you need to review the terms and conditions of the Personal Loan application.

Step 7: Accept the Loan amount

Lastly, if you are okay with the bank's terms and conditions, then accept the loan amount. After verification and approval, the bank will disburse the amount directly into your account.

Documents required for Personal Loan application

• Duly filled loan application form
• Identity proof such as Aadhaar Card, Passport, Voter ID, etc
• Address proof such as Aadhaar Card, Passport, Utility Bill, or Driving Licence
• Permanent Account Number (PAN) Card
• Recent passport-size photographs (if required)
• Income proof (Salary slips for the last 3–6 months or latest Form 16)
• Bank statements for the last 3–6 months

Common mistakes to avoid while submitting a Personal Loan application

Many times, Personal Loan applications are also rejected by banks and other financial institutions due to discrepancies in the application. Here are some common mistakes to avoid while submitting the application form:

• When submitting the Personal Loan application form, do not omit any information, such as income sources, existing loans, etc. Any incorrect information will lead to loan rejection.
• Assess your credit needs while applying for a loan. Overborrowing, or taking a larger loan amount, will also increase your interest burden.
• Ensure that all the documents you submit while applying for a Personal Loan are correct. Any discrepancy in documents can lead to loan rejection.
• Before applying for a Personal Loan application, always check your credit score and report. A lower credit score may lead to rejection.
• Lastly, when submitting your Personal Loan application, be sure to review any hidden charges.

Conclusion

Obtaining a Personal Loan is a straightforward process if you meet the eligibility criteria. However, before taking a loan, you also need to compare Personal Loan interest rates, loan tenure, repayment plans, etc., from different lenders.

This will help you make informed decisions. Furthermore, you can also use an EMI Calculator for a Personal Loan to know the estimated monthly EMI before taking out a loan.