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WHAT PROCESS TO FOLLOW FOR APPLYING A LOAN?

With ever increasing competition in lending sector and advancement in technology, numbers of loans are readily available in the banking market. Moreover, you can get your loan processes within few business days of filing your loan application.

A loan from any financial institution is your sole responsibility and requires your diligence at every step, from filling an application form to repaying the loan amount. Hence, we have compiled up the loan process in easy steps that one must follows before applying for a loan.

  • Decide the loan quantum: It’s good to figure out the expenses that you want to cover with loan beforehand. Finalize a reasonable amount you want to borrow from a lender and be careful not to borrow excessively. Similarly, it should not be too small that makes you unable to fulfill your needs. Make a balance between your income and needs before deciding a loan amount.
  • Research loan type: There are various types of loans to choose from such as secured loans and unsecured loans depending upon your needs. These loan types may include Business Loans, Personal Loans, Home Loans, Loan against Property, Gold loan etc. Take into considerations these loan types before finalizing the next step either you need a loan with collateral or not.
  • Eligibility Criteria: When you "Apply For Loan" the lender asks for your age, current profession, regular income as well as credit history. Try to check your loan eligibility beforehand with chosen lender, if you fulfill it completely, then file for a loan.
  • Compare the Lenders: If you want to grab a best deal and other benefits on loan, it is highly recommended to compare the various lenders and offers provided by them. After analyzing all the benefits and drawbacks, make an informed decision as to which lender you want to choose.
  • Check your CIBIL: Every lender considers the credit score of the borrower before lending a particular loan amount. A credit score above 750 is considered to be good to lend you money. Most of the lenders do not approve your loan with low CIBIL score; therefore, make sure to check your credit report before applying for a loan.
  • Apply for a Loan: Once you finalize the amount and lender, it’s a time to "Apply For Loan Online" or in-person by visiting the financial institution. Either you apply online or offline, you need to upload/submit the required documents like ID proof, residence proof, income proof etc. Once you provide the documents, the lender will start processing your loan.
  • Verification: The lender will verify all your documents to check their authenticity if you are not an existing customer with particular financial institution.
  • Loan Agreement: If your verification goes well and your loan gets approved, you will be asked to sign the agreement of loan which includes all the terms and conditions applied on loan. Read carefully before signing loan agreement.
  • Disbursal: After the completion of all formalities, the lender will disburse the decided loan amount to your bank account directly within 2 -3 business days.

Knowing all these steps, one must be ready to avail the required loan to fulfill their financial needs.


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