Obtaining a loan is a significant decision in the financial sphere, and understanding the loan application process is crucial. Starting with assessing your exact financial needs and creditworthiness, it proceeds to researching lenders, gathering essential documents, and completing the application as well.
By following this comprehensive guide, you’ll be well-prepared to navigate the application process and make informed choices that align with your financial goals.
What is a personal loan?
It is basically a financial product that allows individuals to borrow a fixed amount from a financial institution, credit union, or an online lender. Unlike specific-purpose loans (car loans or home loans), personal loans can be used for various purposes, such as consolidation of ongoing debt, home improvements, or unexpected expenses.
Here, the borrowers who avail of this facility repay the loan with interest in fixed monthly installments over a predetermined tenure. But if you choose the right platform, you might not have to pay the interest.
What are its advantages?
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Versatility
Personal loans are versatile in nature, as they can be used for tons of purposes. As mentioned above, they can be used for consolidating debt, covering medical bills, home renovations, etc.,. Borrowers have the complete flexibility to choose how they want to use the fund amount.
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No Collateral
These are unsecured, meaning you don’t need to offer collateral to secure it. This ultimately reduces the risk of losing valuable assets if you’re unable to make payments, unlike secured loans.
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Fixed Rate of Interest
Personal loans often come with fixed interest rates, which means your monthly payments remain consistent throughout the loan term. This predictability makes it relatively easier to budget and plan for repayments, preventing unexpected financial stress caused by fluctuating rate of interest.
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Instant fund access
Many lenders offer a streamlined application and approval process for personal loans. Here, you can often receive the funds within a day, and this speed undoubtedly makes it quite a suitable option in order to address urgent financial needs.
How to avail a personal loan?
Here, I’d like to share my personal experience so that all the readers can have a better understanding. Around two months ago, I was in need of some financial assistance in order to fund my daughter’s overseas education. This is when one of my colleagues advised me to go for this loan instead of asking for relatives or friends.
Here is a step-by-step guide on how to avail of a loan from Stashfin:
- Download the app from the Play Store/App Store
- Sign up using your mobile number
- Add your personal details to check your credit limit
- Complete KYC and you are good to go!
Conclusion
The loan application process involves several critical steps. It tends to begin with thorough research to understand your financial needs and options. Further, assess your creditworthiness and financial docs, ensuring they are in proper order.
Lastly, you need not go anywhere to avail of this facility. With just a few taps on your smartphone, you are more than good to go.
