What steps are involved in opening a personal loan?

Answer

A:

Applying for a personal loan involves a series of steps to ensure you're eligible, your documents are verified, and the loan is disbursed to your account. Here's a simple breakdown of the process:

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 Step-by-Step Process to Open a Personal Loan:

1. Check Your Eligibility

• Most lenders require:

  • Age: 21–60 years

  • Stable monthly income (₹15,000+)

  • Good credit score (650+)

  • Indian citizenship

• Use the lender’s online eligibility calculator.

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2. Compare Lenders & Offers

• Compare banks, NBFCs, and digital lenders on:

  • Interest rate (ranges from 9%–36%)

  • Loan tenure (1 to 5 years)

  • Processing fees & prepayment charges

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3. Choose the Loan Amount & Tenure

• Based on your income, repayment capacity, and purpose (e.g., medical, wedding, travel).

• Use an EMI calculator to plan monthly payments.

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4. Submit Your Application

• Apply online or at a bank branch.

• Provide basic details: name, PAN, Aadhaar, income, job, existing EMIs, etc.

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5. Upload/Submit Documents

Typical documents required:

• KYC: PAN card, Aadhaar card

• Income proof: Salary slips, bank statements, ITR

• Employment proof: Offer letter, ID card

• Photograph (passport size)

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6. Verification & Credit Check

• Lender checks your credit report (CIBIL or others)

• May call or email you to verify employment and address

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7. Loan Approval

• If everything is valid and your credit score is sufficient, you'll get approved.

• Some lenders give instant approval for pre-qualified customers.

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8. Loan Agreement & Acceptance

• Carefully read and sign the loan agreement.

• Check for:

  • Interest rate

  • EMI schedule

  • Penalty clauses

  • Prepayment conditions

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9. Loan Disbursement

• Once signed, funds are usually credited to your bank account within:

  • 24–48 hours for NBFCs/online lenders

  • 3–7 days for banks

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10. Start EMI Repayment

• EMIs begin from the next month.

• Maintain sufficient balance in your bank account to avoid EMI bounce and credit score damage.

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Need Legal Help or Loan Review?

Call: +91 9625961599
Visit: www.legals365.com
Advocate B.K. Singh and team offer legal advice on personal loan contracts, hidden charges, and loan disputes.

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