Step-by-step Process to Apply for Personal Loan Online
By Anupama Deshpande | May 24, 2019

Financial crisis may occur at any point of time when you are out of funds. As a saviour, Personal Loan comes in picture on such occasions. These loans are generally granted to Salaried and Self-employed persons. There is no need to disclose the end use of the fund availed under personal loan. Many lenders don't extend loan to the applicants having no credit history or those who don't have a higher income.

The only disadvantage associated with the personal loan is that it comes with a relatively high rate of interest compared to other types of loan such as home loan or vehicle loan because a greater risk is associated with it.

Mainly your credit score is the factor which determines whether you will qualify for personal loan and the rate of interest on personal loan that you will receive.

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When asked how to apply for personal loan online, here is a guide that give you a step-by-step process to apply for personal loan online:

Log on to the lender's website. Here, you can apply for a personal loan online by filling a form. It will be a very simple and easy-to-use online application form. When you apply for a personal loan through online mode, lenders usually checks your personal details filled in by you and will tell you about your eligibility instantly.

You can also check your eligibility using online personal loan eligibility calculator provided by the lenders by entering your details. It is very helpful tool to be used by you before you apply for a personal loan.

A few lenders that are 100% automated, provide a facility to upload required documents for personal loan such as identity proof, address proof, PAN, salary slips, etc. on the portal itself for a quick disbursal of personal loans while some lenders arrange their relationship manager to fix up an appointment to come to your place and collect the required documents physically. You can select a pick up address of your own choice and a time of your convenience.

List of required documents for personal loan:

• Identity Proof (anyone): Voter id, PAN card, Driving licence, Aadhaar card or any Gov. issued id card
• Address Proof (anyone): Passport, Electricity bill, water bill, Telephone bill, Rashan card, Bank statements
• Age Proof(anyone): Voter ID card, Aadhaar card, Driving Licence, Passport or any school leaving certificates
• Income Proof(anyone): Salary Slip, ITR, Form 16
• Proof of Business Experience (only for self-employed): PAN, Sales tax/excise tax/service tax registration

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After you have submitted required documents, lender will first verify them through their own sources. This is a part of personal loan approval process. In case of any query, lender can also have a personal discussion with you.

In case, lender wants some additional documents, it will inform you.

If everything is found satisfactory in verification, your loan will get approved by the lender. You will be sent a confirmation about the same. The sanctioned amount will directly be deposited in the bank account as mentioned by you in the application form.

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