A personal loan is a great financial tool to tide you over when you have an expense that cannot be covered by your savings. You can use these loans to address any kind of expense, be it travel or a big function at home or a major repair of your home. Getting a personal loan in Surat is an easy task too especially since there are so many lenders willing to offer these products. Here is all you need to know about the personal loan process.
Step 1: How much do you need?
Assess the expenditure you are likely to incur and then see how much of it you can afford to pay from your savings. The more you take as loan, the higher the cost you bear in terms of interest rates. Covering some of the expense from your savings allows you to trim your outgo and keep it minimal. Some lenders have high and some low eligibility limits. Comparison shopping is essential to find the ideal loan.
Step 2: Check eligibility
Lenders have specific eligibility criteria laid out to determine who can avail of loans and also how much each borrower can avail of. Check the lender eligibility requirements to figure out how much you are eligible for. Understand ways in which you may be able to prove yourself eligible for a higher loan if you are falling short.
Step 3: Understand EMIs
One of the critical and yet overlooked steps in the personal loan process is to calculate and understand what your monthly outgo will be if you take the loan. To do this, you have to calculate the Equated Monthly Instalments or EMIs that you will have to pay per month. Don’t worry about the calculation being too complex for you because there are online EMI calculators that can tell you your monthly outgo for a personal loan in Surat. if you input the principal, the interest rate and the tenure of the loan. This is also one of the critical aspects to compare when you are shopping for a loan. Put down the EMIs of various loan products you have shortlisted and then find the one that is most affordable for you.
Step 4: Apply
The application part of the personal loan process can be done completely online these days although most lenders also have an option for you to go in person to do it. Doing this online saves you time and energy and also makes the process simple and hassle free. Make sure you check and cross check the data you fill into the application form. You do not want to give erroneous information that causes your application to be rejected upfront.
Along with the application, the lender may ask you to upload certain documents such as ID proof and age proof, salary slips, bank statements etc. These help the lender begin the verification process. Ensuring you give in everything asked for and in proper form helps the lender validate the data and sanction the loan quickly.
Once you have submitted all documents, the lender may, in some cases, send an executive over to physically verify certain aspects like place of residence. However, many lenders have no physical verification involved and the loan sanction is the next and final step in the personal loan process. Once sanctioned, you will be intimated and you can check if the funds have been credited to your account.
Now you have access to your funds, you can carry out the expenditure first and then plan ahead for your repayment schedule. Again, the EMI calculator comes in very handy in planning out your monthly outgo and ensuring that your account has enough funds in it for this debit. Remember that a delay in repayment or default can result in penalties and, in worst case scenario, legal action against you. Further, defaulted payments or delayed payments affect your credit score, which is a very significant aspect considered by lenders who have received your application for personal loan in Surat. Once you have the repayments planned out, you can sit back and enjoy your vacation or function or renovation that you funded with this loan.