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Need a Quick Unsecured Personal Loan? Here is How!

Updated on: 14 Dec 2021 // 19 min read // Personal Loans
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If you are on the lookout for a quick loan, to meet some urgent expenses, you would want to avoid visiting each lender physically, or any cumbersome paperwork. Thankfully, with the extensive digitisation of all types of credits and other banking products, you can now gain easy access to Unsecured Personal Loans from the comfort of your own home or office.

For the uninitiated, unsecured loans denote that you are not required to offer any collateral in exchange for the loan amount. What’s more is that you can now expect to get your loan application approved and the amount disbursed in a day or two, owing to the incredibly sped up processes deployed by leading banks and financial service providers across the nation! Hence, you need not be surprised when your application for Tata Capital Personal Loan gets approved in less than a day!

So how do you actually procure an Unsecured Personal Loan?

Well, the answer is relatively simple. You can simply visit the official website of a bank or lender of your choice, or check out the site of a trusted online loan aggregator. In both the cases, you will be required to fill in a quick form sharing some of your personal details, such as name, age, your line of work, and so on. You will also need to share the details of the organisation you work for and your salary (if you’re salaried), the name and earnings of your enterprise (if you are a business owner), and your profession and annual income from the same (if you are a self-employed professional). Besides, you may need to share the loan amount that you are looking for.

Apply for Personal Loans Online

If you are unsure of the loan amount you should opt for, you can easily rely on the various tools such as Personal Loan EMI Calculator offered by your chosen loan aggregator. Not only will this tool help you analyse your repayment ability, but will also help you select the ideal loan amount taking into consideration your Debt-to-Income Ratio. At this point, it is crucial for you to remember that the overall equated monthly instalment (EMI) you pay in any given month shouldn’t exceed 40% of your monthly income, and should put any strain on your Personal Loans.

Once you have figured out the desired loan amount, you will be asked for your contact details, and a relationship manager or a financial advisor will get in touch with you to discuss your requirements.

After your communication with the lender, you will be then asked to submit all the requisite documents, including your identity proof, your age proof, the evidence of your employment and that of your income, most likely accompanied by a passport-sized photograph.

Next, the bank will draw your credit report and analyse your credit score. If all your documents are successfully verified, then based on your credit score, the bank will approve your Personal Loan Application and communicate the applicable interest rate on your loan.

If you find the rate compelling enough, and you are satisfied with the terms of the loan, you can go ahead and seal the deal. Before you know it, the loan amount will be deposited in your account, and you can then use the same, as you deem fit. Some of the most popular uses of Personal Loans are:

  • Meeting medical expenses
  • Renovating your home
  • Sponsoring your child’s higher education
  • Bearing the costs of a wedding
  • Buying high-end appliances
  • Meeting the costs of a vacation

Given that unsecured loans mean increased risk for the lenders, there are a few aspects that they take into consideration, before approving the loan application such as:

  • Your Credit Score

It is essential for you to have a credit score of 700 or above to be able to prove your creditworthiness. If your score is less than that, you may have to compromise on the rate of interest or on the loan amount. It is therefore advisable for you to check your credit score before applying for the loan.

  • Your Employment Status

The lender will need you to have continued employment, whether as a salaried individual, a business owner, or a self-employed professional.

  • Your Income

Your approved loan amount will largely depend on your income level, since the lender will take a close look at your ability to repay the loan, without putting too much strain on your living expenses.

Also Read: Is it Possible to Get a Personal Loan if You Have Defaulted on a Loan?

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

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