One can find himself in a dire need of money any time. There could be an important family function ahead, a vacation that you can’t afford to postpone, a set of loans to consolidate in the immediate future, or a luxury item to buy important in the near future.
For any of these reasons, and beyond, you can explore how to raise a personal loan.
A personal loan is an unsecured loan that does not need collateral and can be raised from any financial institution such as a bank, an NBFC or even a fintech app.
All these institutions enable applicants to apply for personal loans online, thus enabling them to procure personal loans instantly.
If you are also contemplating raising a personal loan, remember that it is actually easier than you can imagine. All you need are the following documents:
a) salary slips for the past three months.
b) form 16 to show the annual income and TDS deductions.
c) Bank statement for the past 6 months (in some cases).
d) PAN card
e) KYC through aadhaar authentication
Let us understand this with the help of an illustration: Suppose you want to raise a loan of ₹3 lakh immediately, these are the steps you should follow:
I. First of all, go to this link: where you need to enter your number to see what all personal loan offers you are entitled to.
II. Based on these offers, check the personal loan EMI calculator to ascertain the monthly instalment that you will have to pay across tenures. Then you can choose the option that suits you the most.
You can access the personal loan EMI calculator here:
For instance, if you want to raise ₹2.5 lakh, and the bank is willing to offer you the loan at 10.5 percent interest rate – you can visit the personal loan EMI calculator to explore different options of repaying the debt before choosing the one that aligns with your ability to repay.
The monthly EMI, for example, when a ₹2.5 lakh loan (at 10.5 percent per annum) is repaid in 36 months is ₹8,125. For 48 months, the EMI reduces to ₹6,400 and for 60 months, it falls to 5,373.
Suppose, you can afford to pay ₹6,400 a month, you would want to opt for a loan tenure of 48 months instead of 36 months.
III. Once you know these nitty-gritties of personal loan i.e., rate of interest, loan tenure and the EMI liability – you could apply for the loan with a bank or an NBFC or a fintech app, as the case may be.
IV. Once the loan gets approved subject to your eligibility, you can claim the loan and get the money in your bank account. However, do not forget to read all the terms and conditions and a host of fees and charges that are applicable.
