A Personal Loan is a versatile financial tool that covers various expenses with no restrictions on usage. This means you can use the amount for any legal use. Also, you may access these loans quickly and easily with minimal documentation requirements. Typically, these loans are collateral-free, meaning you don't need to pledge an asset as security against them. You may use them for medical treatment, education expenses, home repairs, and expensive gadgets.

You must complete an online loan application form and submit it to the lender to apply for instant Personal Loan. Here is a go-to guide to walk you through the steps involved in the loan application process.

Determine the Reason to Apply for Instant Personal Loan

The first step is to determine the reason for the application. You may borrow them to cover various expenses. Some common reasons to apply for a 1 Lakh Personal Loan or higher include the following:

• Medical Emergencies: Personal Loans have instant approval facilities, making them the best funding option for medical emergencies.
• Wedding Expenses: A Personal Loan provides quick funds to cover a last-minute wedding expense.
• Home Repairs: If you plan to renovate your house or need an urgent repair, an instant loan provides quick funds to cover the project’s cost.
• Travel Costs: Whether you want to travel for work or fulfil a long-awaited trip, a Personal Loan for travel can cover various costs related to the trip.
• Expensive Purchases: If you want to buy a new laptop, phone, appliance, or gadget, a Personal Loan distributes its cost into EMIs at attractive interest rates.
• Higher Education: Do you need more funds to finance your child's education? Finance the cost with a 1 Lakh Personal Loan without any hassle.
• Debt Consolidation: A Personal Loan allows you to consolidate several credit accounts into one Personal Loan to make them easily manageable and reduce your financial burden.

Evaluate Your Loan Requirement

Once you determine the purpose of borrowing, you must evaluate how much you need to cover the expense. For instance, an entire home renovation project might need a loan of up to ₹ 5 Lakh. However, a 1 Lakh Personal Loan would suffice for minor repairs. Also, choose a loan amount that you are sure to repay on time. Use an EMI calculator to calculate the monthly instalments and borrow an adequate loan amount with budget-friendly EMIs.

Check Your Credit Score

The credit score is crucial in determining your Personal Loan eligibility. A decent credit score indicates that you handle your financial obligations responsibly. It will improve the lender's trust in you, encouraging them to approve your loan application without hassle. Some lending institutions may agree to approve your loan but with a smaller loan amount and higher interest rate. Therefore, check your credit score before applying for a loan to see where you stand.

If you have a low credit score, follow these tips to improve it before applying:

• Check your credit report, identify errors, and correct them immediately.
• Approach your credit card issuer to increase your credit limit.
• Avoid borrowing unnecessarily.
• Repay your loan EMI and credit card bills on time.
• Choose different credit products to diversify your credit portfolio.
• Retain your old credit accounts and cards to prolong your credit history and utilise their credit limits.
• Choose a longer repayment tenure to make repayment easily manageable.

Compare the Loan Plans

Loan plans from different lending institutions vary for applicants. For instance, different lenders may offer varying interest rates to applicants with a particular income, credit score, and loan requirement. Therefore, evaluate the loan offers available to you and compare them based on several factors, including the following:

• Loan amount
• Interest rate
• Repayment tenure
• Additional charges
• Eligibility criteria and documentation requirements
• Customer service
• Market reputation and experience

Approach the Lending Institution

Once you select the loan company, check their eligibility conditions to ensure you fulfil them. Mostly, the eligibility criteria include age, income, profession, work experience, etc. If you qualify, visit their website or download their loan app to begin the application process. Opt for a platform that supports a complete digital loan process. It will save you from visiting the lender’s office for application or documentation.

Apply

You must complete an online application form to apply for an instant Personal Loan. Follow these steps to apply:

• Open the platform’s Personal Loan section.
• Click the 'Apply Now' button.
• Enter a few necessary details, like your name, address, email ID, and phone number.
• Provide information about your loan requirements, profession, finances, etc.
• Scan and upload the necessary documents through the digital interface, including your address, identity, and proof of income.
• Wait for the verification process to complete.
• Receive a loan offer in your email address.

Follow-Up and Track Your Loan Status

Once you submit the loan application, follow up with the lender to track your status. Check your email address where you will receive an approval or rejection. If the loan provider approves your loan, they will send a loan offer with details regarding your approved loan amount, interest rate, repayment tenure, processing fee request, etc.

Review the loan offer carefully and accept it digitally by signing the loan agreement. Once you receive the loan offer, the lender will quickly disburse the approved loan amount to your bank account.

Repayment

The repayment process starts immediately after disbursal. You must pay your first EMI from the next month on the same date of disbursal. Give standing instructions to your bank to pay the EMI automatically from your account on the due date. This way, you will pay the EMIs without fail without the need to remember them each month.

If you need easy and quick financing, a 1 Lakh Personal Loan can be your right choice. Follow the above steps and research to find a loan plan that is hassle-free. Hero FinCorp allows you to apply for instant Personal Loan online and get immediate approval. All you need to do is complete an online application form and sign the contract digitally. Once you accept the loan offer, you will receive the money directly into your bank account.